Scroll down for a discussion on Final Expense Direct Mail Leads within the Insurance Leads.
Typically the response rates for FE direct mail leads hover between 0.75%-2% response rate for mailings to people 55-80, household income 0-40K. Does anyone know ...
Typically the response rates for FE direct mail leads hover between 0.75%-2% response rate for mailings to people 55-80, household income 0-40K. Does anyone know ave. response rates for 0-10K, 10K-20K, 20K-30K, 30K-40K income bands? How about for age bands of 55-60, 61-65, 66 -70,71-75, 75-80? Opinions are welcome and hard facts are preferred. Thanks in advance.
A good percentage of agents using our service choose 55-80 with income of 15k-40k or 50k. Some still like to include the 0-15k band and about half use the female priority feature.
You will definitely get responses out of the 0-15k band. The biggest thing about this income band is obviously the majority can't afford much of anything.
All compiler databases are estimated household income "banded" -- $0-$15K; $15-$20K; $20-$30K; $30-$40K; and $40-$50K.
There doesn't seem to be a lot of difference except for the $0-$15K band -- response rates average 25-50% higher if the geo is selected properly. There's a school of thought that says $0-$15K are on Medicaid, and therefore have their health care costs for free, which means more disposable income for FE. Not sure I agree, but you will get good response rates at the low income band nonetheless. Many won't have checking or savings accounts, however.
Go above $50K, and your rates drop dramatically.
Ages 48-60 pull about 50% better than the "normal" 60-80. 80-85 will pull about twice as well as 60-80, but now you have many more serious health issues, and astronomical premiums.
All compiler databases are estimated household income "banded" -- $0-$15K; $15-$20K; $20-$30K; $30-$40K; and $40-$50K.
There doesn't seem to be a lot of difference except for the $0-$15K band -- response rates average 25-50% higher if the geo is selected properly. There's a school of thought that says $0-$15K are on Medicaid, and therefore have their health care costs for free, which means more disposable income for FE. Not sure I agree, but you will get good response rates at the low income band nonetheless. Many won't have checking or savings accounts, however.
Go above $50K, and your rates drop dramatically.
Ages 48-60 pull about 50% better than the "normal" 60-80. 80-85 will pull about twice as well as 60-80, but now you have many more serious health issues, and astronomical premiums.
Do you include PO Boxes, theinsuranceman?
Atlantainsguy
I try to avoid PO Boxes..too hard to find a street address if they do not leave a phone # or are not listed in phone book or whitepages.com. 48-60 pulls about 50% better than 60-80 for FE? Are you pretty sure this is correct with data/experience or just your opinion?
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Originally Posted by Frank Stastny
Market Med Supps and cross sell FE. Much easier that way.
The only problem is a good % of my time will be prospecting on the phone. I'd rather my time be spent closing and writing, that's why I pay good $$ to work leads. I could get free leads by cold calling seniors, or dialing number after number from an inexpensive list, but I'll make more profit per unit of time working FE leads. May not be true for everyone.
Last edited by theinsuranceman : 09-01-2009 at 06:31 PM.
Reason: Posts merged
Exactly spending time cold calling may work for one agent, but paying for leads works best for another agent.
That's true when an agent is not trained on working leads. If an agent is trained by someone who has 10 years experience working leads, then buying leads wins out everytime. Doesn't matter if you go door knock the leads, use the phone to set appointments, or sell over the pnone with a digital recorder.
The only problem is a good % of my time will be prospecting on the phone. I'd rather my time be spent closing and writing, that's why I pay good $$ to work leads. I could get free leads by cold calling seniors, or dialing number after number from an inexpensive list, but I'll make more profit per unit of time working FE leads. May not be true for everyone.
You may very well be right. Sounds like you already have it figured out.
I agree 110% insuranceman, If agent has been trained by someone who can teach them how to overcome the "appointment objection" then their chances of building a successful insurance business just went through the roof.
Do you guys set up appointments by yourself or your secretory? I am talking about the appointment for FE leads. Do you provide quotes over the phone before making the appointment or just the appointment?
Do you guys set up appointments by yourself or your secretory? I am talking about the appointment for FE leads. Do you provide quotes over the phone before making the appointment or just the appointment?
Myself, I don't need a secretary. If I was not working leads and just calling numbers from a list then I would definitely use a secretary to set appointments, because of the large number of calls that have 2 be made to find a "lead".
What is the best way, Frank, to "market Med Supps and cross sell FE"?
I'm only 3 months writing FE and learning.
I have hired and trained good telemarketers and appointment setters for Med Supp sales. With my approach to marketing and selling it is a lot more effective, I set more appointments (real appointments) and make more sales by doing it myself. Many times I even sell it over the phone
I never go on an appointment unless I can save the prospect money on their Med Supp. After completing the application I again point out the savings and simply suggest that they may want to invest some of that savings in a policy specifically for the purpose of covering their final expenses.
Many times they are able to have both a Med Supp and a FE policy and still have enough money left over to put some in their pocket.
Mes Supps are hands down the easiest to get appointments for and the easiest to sell. Infinitely easier than FE policies. I have sold a ton of FE and every policy I sold was the direct result of a Med Supp appointment.
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I have hired and trained good telemarketers and appointment setters for Med Supp sales. With my approach to marketing and selling it is a lot more effective, I set more appointments (real appointments) and make more sales by doing it myself. Many times I even sell it over the phone
I never go on an appointment unless I can save the prospect money on their Med Supp. After completing the application I again point out the savings and simply suggest that they may want to invest some of that savings in a policy specifically for the purpose of covering their final expenses.
Many times they are able to have both a Med Supp and a FE policy and still have enough money left over to put some in their pocket.
Mes Supps are hands down the easiest to get appointments for and the easiest to sell. Infinitely easier than FE policies. I have sold a ton of FE and every policy I sold was the direct result of a Med Supp appointment.
I've never sold med supp but I have a question...if the rates go up next year on the med supp policy you just wrote what happens to the final expense policy you just wrote? Lapse?
Last edited by theinsuranceman : 09-02-2009 at 07:11 AM.
Reason: Posts merged
Final Expense.
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I've never sold med supp but I have a question...if the rates go up next year on the med supp policy you just wrote what happens to the final expense policy you just wrote? Lapse?
Rates go up on all Med Supps. Some of them increase yearly.
I have not noticed any correlation between Med Supp premium increases and FE cancellations. What is more likely to happen is the person will go shopping for a less expensive Med Supp.
For that reason it is almost imperative that agents working the senior market be independent agents and be capable of representing multiple companies.
Yes, theinsuranceman, I'm positive "younger" ages will pull better than ages 60-80. I'm now looking at data based on 1 million FE mailings.
Actually starting at age 44 is best, not 48. I was going from memory, not the numbers like now. Ages 44-60 pulled 35% better than the 60-80 age group. The only part of the 60-80 age group that did better than that age group average was 61-64. After that, the respone rates fell almost 40%.
Estimated household income was strongest under $20K by 37.5% compared to $20K+. $20K-$30K was 22% less than $0-$20K. $30K-$40K was 57.1% less. $40K-$50K was 83% less.
Reason I asked about PO Boxes is that hardly anyone mails them. Testing I"ve done shows a 50% lift compared to street addresses, and 80% include a phone on a direct mail lead card.
The source of your data is also an extremely important factor. Compiler databases all share about 75% of the consumer "universe". The difference varies by database. The one I use has about 30% "unique" names, and they pull a minimum 50% better than the names common to all the other databases. Several of the compiler databases are quite "overmailed" (and "overphoned" as well), which will dramatically effect your final results.
These are facts, not opinions. Data is 14 months old, however, and the FE market has really changed since then -- so take these numbers for what you think they're worth.
Frank is right about Medicare. Response rate for direct mail leads is at least twice that for FE. You will be in front of a lot more people starting with Medicare, and then just cross-sell the FE. You can have your proverbial "cake, and eat it too" using Frank's strategy.
Final Expense Direct Mail Leads
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