Final Expense Company Selection

[term1]

Isn't med sup different in that most carriers underwriting is similar as you're dealing with continuous claims over many years versus fe dealing with one claim thus the underwriting on med supps much stricter than fe. Readern you're correct most fe is one shot close but with many people you have no choice as you can try multiple closes but if they're set on thining about it nothing you can do. And if you push them to buy they'll simply drop it or call you the next day and say to not turn it in.

 

[HoosierLife]

Isn't med sup different in that most carriers underwriting is similar as you're dealing with continuous claims over many years versus fe dealing with one claim thus the underwriting on med supps much stricter than fe. Readern you're correct most fe is one shot close but with many people you have no choice as you can try multiple closes but if they're set on thining about it nothing you can do. And if you push them to buy they'll simply drop it or call you the next day and say to not turn it in.

I don't know, I've been looking at med Supp carriers lately and there is a lot of difference in UW. They are always more strict than FE UW, but there are niches in med Supp companies too.

I too would like a discussion on that someday. Maybe in the Senior Insurance forum.

 

[bboman23]

Not just a line up. One company. One company as a go to that you intend to write everyone with. Learn that company inside out and they will learn you too.

I'm prety sure that's what Newby is saying. But there is not one company out there for everyone so you should have a couple more to default to if they are not a good fit for your number one.

For me that's RNA. If everyone was a good fit for RNA they would all go to RNA. They are not so I carry some others for those people. Today you pretty much have to have a carrier or two that takes the DE card. RNA doesn't so there's what Newby calls a "trigger" to go elsewhere.

Exactly! Have to have 2 or 3 companies you know very well and they need to be able to put the bulk of the business with them. Very informative post for a Newby.

 

[agentjhc]

I don't know, I've been looking at med Supp carriers lately and there is a lot of difference in UW. They are always more strict than FE UW, but there are niches in med Supp companies too. I too would like a discussion on that someday. Maybe in the Senior Insurance forum.

Med Supp UW varies by company. Some are more lenient or strict than others. That is where it is somewhat similar to FE. Unlike FE, Premiums vary from area to area (sometimes a lot) and typically go up annually. Others with more experience can probably add a good deal more info than I can as a novice.

 

[Rearden]

Readern you're correct most fe is one shot close but with many people you have no choice as you can try multiple closes but if they're set on thining about it nothing you can do. And if you push them to buy they'll simply drop it or call you the next day and say to not turn it in.

My point was not that you need to headlock every appointment into a sale no matter what.

Quite the contrary; my point is when you are presented a qualified prospect that is ready to buy TODAY, you should NOT squander an opportunity like that by NOT being prepared with the right carriers at your ready.

"You miss 100% of the shots you don't take."

 

[sherlock3]

When training brand new Final Expense agents they are learning a lot of new things at the same time. Lead management, appointment setting, presentations, underwriting, quoting, etc. It's pretty overwhelming. And there's a lot of pressure because this may be the first time you have worked on straight commission and leads will eat you alive if you don't make sales.

One of the most difficult parts is choosing which companies to sell. New agents often make the mistake of applying with the cheapest companies on FexQuotes just to get declines or moving too quickly to guaranteed issue companies which isn't ever a good move. When I look at which companies an agent carries with him, there is often no rhyme or reason to it. Sometimes the companies are too similar. You've heard the saying that if two people are just alike, one of them is un-necessary? Same goes for FE companies.

You can carry eight different companies around and have piles of cheat sheets and RX guides and underwriting manuals but it's still confusing. And if you don't appear prepared and confident like you've done this a million times you will get more "I want to think about it" objections.

But maybe there's an easier way!

Here's Newby's suggestion for all new agents:

Step #1- Choose a main company that you love and can place a large percent of your cases with at preferred rates.

Step #2- Study your company and learn the "triggers" that would make you have to use another company. Make a list of each condition that causes you to trigger away.

Step #3- Figure out ahead of time for each trigger, which company will be good for that condition.

Step #5- Set up your presentation case with your main company and two triggered back up companies that will cover all the common conditions we run into.

You can now write 97% of the cases with your three main companies and you are only digging in your trunk on occasion. You approach your appointments with the plan that you are going to write them with your main company EXCEPT when you hit one of your triggers and you already know where you are going with those. Now you come across like a confident professional.

For instance: 5-Star Life is a great choice as your main company because of their competitive rates, liberal underwriting, debit express option AND the lead credit bonus.

So let's say you chose them as your main. What would your triggers be?

Trigger #1- Anyone under age 50 and smokers over age 80.

Trigger #2- Anyone on depression meds of any kind

Trigger #3- Anyone off their height weight chart

Trigger #4- Anyone with COPD if they can get 1st day coverage elsewhere

Trigger #5- Anyone taking any drugs on 5-Star's lengthy RX list.

OK, now the next step is to research which companies would accept most of these triggers. An obvious great choice is Transamerica.

TransAmerica takes all weights at preferred. They offer ages 0-85. They don't rate up for depression. And they offer 1st day coverage for COPD. With this one company you have a great backup choice. They even have a real slick RX lookup tool for your smart phone.

Third choice for this exercise for me would either be Royal Neighbors or Aetna for their very small or non-existent RX lists since your main company has a huge list of knock outs.

You can choose any company to be your main one and build your own group of dragon slayers. But the main thing is to have some reasoning behind your company selections. Get real good at knowing your main companies. You can have more for the odd-ball cases here and there.

Have your up line (why aren't you with FexContracting anyway?) help you build your starting line up. You don't want to stuff your case with Oxford, Trinity and 5-Star (three great companies but more alike than different).

You don't have to be the dirt cheapest to get business to stick. But you DO have to be in the ballpark and you DO have to get approvals with 1st day coverage on most of your sales. Your success as a new agent starts with the companies you choose and your ability to study and learn them and be ready for what gets thrown at you in the home. Then you can present with confidence and not fumble around.

That's today's free Monkey Dust.

Thanks so much for this very valuable information!

 

[Newby]

Isn't med sup different in that most carriers underwriting is similar as you're dealing with continuous claims over many years versus fe dealing with one claim thus the underwriting on med supps much stricter than fe. Readern you're correct most fe is one shot close but with many people you have no choice as you can try multiple closes but if they're set on thining about it nothing you can do. And if you push them to buy they'll simply drop it or call you the next day and say to not turn it in.

Med sup underwriting is different than life insurance because they are screening against two entirely different risks.

Life insurance is screening against things that will cause you to die early into the policy.

Med sups are screening against conditions that will cause you to limp along and run up huge medical bills.

 

[Newby]

An agent brought this thread to my attention that must have been reading through old threads. It's still the best logical way to approach your company selection. But several of the companies mentioned here have dropped out of the biz (5-Star, Settlers) some have become a little less competitive than they were at that time (Aetna, RNA), at least one has jumped up and become more competitive (Oxford) and many new players have joined the field and taken the place of these.

This would be a good thread for agents to discuss who they use for their main and who their secondary carriers are and the logic of their choices.

 

[Baseball7]

1) can take 80% of my business and you Social Security building to collect the money properly

2) Who complements the 20% my primary carrier won’t take at a level benefit or competitive price

For example Transamerica and Foresters complement the hell out of each other for agents that don’t have a lot of the smaller companies.

**spell checked**

 

[WinoBlues]

1) whi can take 80% of my business and you Social Security building to collect the money properly

2) Who complements the 20% my primary carrier won’t take at a level benefit or competitive price

For example Transamerica and Foresters complement the hell out of each other for agents that don’t have a lot of the smaller companies.

Who would be your second choice to Foresters?