Economy Affecting Sales & Chargebacks?

[Zoaty]

Hello,

After being out of Insurance for awhile I'm getting back into it.

My question is simple - are conversions decreasing, and chargebacks for life (not health) products increasing as a result of the inflation and other economic concerns or are they a non-issue for your business?

To get the best pulse of the industry I'm requesting responses from active agents writing life please - not new agents or agents with low sales volume.

Thank you so much in advance for your thoughts and experience,

Randy

 

[DHK]

The way you've posed your question... shows me more about your mindset than the answers to your question will help you.

My job as an agent/advisor is to help people understand the consequences of the decisions they have made and have yet to make.

Which is easier to do: Pay the premium? Or find the lump sum of money that the insurance was supposed to do?

Based on that, what does inflation or other economic concerns have to do with the original problem that you're solving using insurance? Did that change now that there's inflation? Actually, doesn't inflation mean that you probably need even more coverage?

Regarding conversions and chargebacks... I believe are a direct result of how good and attentive you are as an agent. Chargebacks are if you have 'oversold' the product or the premium... and conversions are if people can see the value of cash value contracts. I believe that's more about you than about them.

 

[Zoaty]

Great insight.

My view is that many folks with the greatest need for small whole life policies like final expense (which I will be selling) are often those with least financial means (not always, but often).

While I agree that these are in fact the people who seem to actually need life insurance the most due to their limited financial resources, I'm curious if chargebacks are also increasing as customers increasingly (due to inflation) have to choose between paying their life insurance premium versus taking their limited income and buying groceries or paying the gas bill in the winter time etc.

If I'm wrong then I'm glad to hear it - it is just a concern I would rather address now than after I begin selling.

Thanks,

Randy

 

[DHK]

You may want to ask in the Final Expense sub-forum and get a consensus there.

https://insurance-forums.com/community/forums/final-expense-forum.79/

 

[Zoaty]

Good idea. :-) Thanks

 

[Allen Trent]

conversions are if people can see the value of cash value contracts. I believe that's more about you than about them.

I am assuming he is calling closing ratio "conversions" of leads to sales, not term to permanent conversions

 

[DHK]

I am assuming he is calling closing ratio "conversions" of leads to sales, not term to permanent conversions

That's... a good point. You can tell that's not my market or what I was thinking of at all.