Many Imos and Agents Have Been Around 24-36 Months Independent. How is Your Persistency?

[goget]

The truth be told if you want to write insurance for 10-20 yrs and sit back and have a huge renewal base servicing exsisting clients you must sell p&c,disability or medicare( this is iffy as the clients are holder and will die off over time). As they say renewals in fe are just gravy.I'm convinced what attracts people to fe are 3 things Easy to get leads.easy issue products and the main thing of lightning quick commissions.

 

[jdeasy]

The truth be told if you want to write insurance for 10-20 yrs and sit back and have a huge renewal base servicing exsisting clients you must sell p&c,disability or medicare( this is iffy as the clients are holder and will die off over time). As they say renewals in fe are just gravy.I'm convinced what attracts people to fe are 3 things Easy to get leads.easy issue products and the main thing of lightning quick commissions.

I would agree with that. Life insurance is not the work for 10-20 years and then stop and rest on your renewal income type of business.

I don't know because I haven't figured it and won't take the time to do so but I would put an estimate that renewals are 25%+ of my annual income.

I wouldn't want to retire on a quarter of my income.

 

[FEsalesNC]

Thanks JD & Agentguy5 for the input. I agree with JD that it's basically pointless to worry about what others are doing. My interest in these numbers was from a business planning perspective. But like JD said: sell them, service them, and the rest will work itself out.

 

[goget]

Jd just curious how old are you? I've seen somebody mention before you're in your late 50's?


Fe this thread wasn't about worrying about it. I did this thread to see what others experience is with Fe renewals to see if one could somewhat count of a portion of the policies staying on the books 5-10 yrs so one could slow down on new sales. It also lets one plan there strage to try to mix in some longer term renewal products like med sups. Nobody wants to be out there killing themselves yr after yr for first yr sales. I know guys with Aflac making $150k a yr in renewals after 10-15 yrs that just service there business. It'd be nice to get to a pt were you don't have to hustle for new business every second

 

[Newby]

Just like any other job or business you also have to put money back for retirement each year. We are all in the perfect position to sell ourselves retirement annuities at a minimum.

 

[rousemark]

The truth be told if you want to write insurance for 10-20 yrs and sit back and have a huge renewal base servicing exsisting clients you must sell p&c,disability or medicare( this is iffy as the clients are holder and will die off over time). As they say renewals in fe are just gravy.I'm convinced what attracts people to fe are 3 things Easy to get leads.easy issue products and the main thing of lightning quick commissions.

You can't do it with Medicare ... It is not just that clients are older and you have them dying off, some will be replaced by other agents. Supplement commission drop to almost nothing after policy is in force for 6 years.. And, if I understand correctly from what has been posted on the forum, you have to recertify every year to continue to get paid on your advantage plans.

Life renewals aren't that great with most companies, some on 2% -5% during the first 10 years and many go to a service fee that is not vested after the policy is 10 years old.

The only thing that I have found that has paid me a decent renewal over the years is my cancer business that has a 15% -20% lifetime renewal. For the most part, you are dealing with younger people and many have the potential to pay the premiums for 20+ years. The long term persistency is very good compared to other products as it is not a product that is shopped very often and the client is not constantly barraged with mail and advertising invited to to inquire about the product.

You still wouldn't want to depend on it for your primary source of retirement income but it can make a nice "supplement".

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I don't why it's important to know what others are doing. That's kinda like the ones that come on here and ask about the "average" agent.

I would guess that most of us don't know. I only have one company that shows a 25 month persistency and I'm at 75% on that one.

If they didn't track that I wouldn't have any idea. I still get paid every friday by Shenandoah. I haven't written a Shenandoah in over 6 years. I still get paid every Tues by F&G. I haven't written one of them in about 6 years. I get a commission statement every month from Presidential and I haven't written one of them in 10 years.

My renewal income is pretty good but I don't track it and separate it from my first year income. It all goes into the same account.

I've never had a company mention a problem with persistency in my 11 years in this business.

Nor do I concern myself with persistency issues. I write business and service the ones I write. I figure all the other stuff will work itself out.

Amen! The key to success in any insurance market, not just FE.

 

[FEsalesNC]

Just to clarify goget I didn't take your post as worrying about it either. I liked the question you asked and was curious as to what the responses would be. Apparently it's a tougher question to answer than I would have thought, seeing as how JD mentioned he only has one carrier that tracks it.

Jd just curious how old are you? I've seen somebody mention before you're in your late 50's?


Fe this thread wasn't about worrying about it. I did this thread to see what others experience is with Fe renewals to see if one could somewhat count of a portion of the policies staying on the books 5-10 yrs so one could slow down on new sales. It also lets one plan there strage to try to mix in some longer term renewal products like med sups. Nobody wants to be out there killing themselves yr after yr for first yr sales. I know guys with Aflac making $150k a yr in renewals after 10-15 yrs that just service there business. It'd be nice to get to a pt were you don't have to hustle for new business every second

 

[Agentguy5]

So Agentguy5 is the only experienced agent on the forum who will state a persistency % ?

Can you share what your FY persistency is? Thanks

It's around 75% but I don't Hand deliver most of my policies

My wife delivers all of her policies and has a first year persistency over 80%

Simple things like sending the client a thank you card, holiday card, and delivering the policies, are crucial to keeping your persistency up!

 

[thomasm]

Just like any other job or business you also have to put money back for retirement each year. We are all in the perfect position to sell ourselves retirement annuities at a minimum.

I know you mentioned this before. I'm interested in learning more about this strategy. Is it similar to the old CD maturity stacking method?

I'm completely ignorant about annuities. (though my old up line used to say, "It doesn't matter. Just get out there and sell them!")

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The only thing that I have found that has paid me a decent renewal over the years is my cancer business that has a 15% -20% lifetime renewal.

Where are you getting that contract? Which carrier? The best I got is 8% for 10 years (Drops to 4% for Yrs. 11+) on my GTL contract.

 

[rousemark]

I know you mentioned this before. I'm interested in learning more about this strategy. Is it similar to the old CD maturity stacking method?

I'm completely ignorant about annuities. (though my old up line used to say, "It doesn't matter. Just get out there and sell them!")

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Where are you getting that contract? Which carrier? The best I got is 8% for 10 years (Drops to 4% for Yrs. 11+) on my GTL contract.

CUL 14% lifetime, UNL 15% lifetime.... I am sure there more out there that have high lifetime renewals but those are two of the ones that come to mind. Back in the dark ages my National Savings Life contract paid 25% lifetime.. I still get paid on a few of those that have been on the books 30+ years.. That was a great company when Kyle Hart owned them.. Hated to see him sell.