- Thread starter
- #11
- 5,938
Doubtful.
My spread is producing about $4k a week - with just 10 agents.
You ???
Tom
Comparison - Final Expense versus Term with ROP
- Thread starter myinsurebiz
- Start date
Doubtful.
My spread is producing about $4k a week - with just 10 agents.
You ???
Tom
- 2,908
What does that mean "qualifies for non-med only."
Does he have a risk factor that you assume will cause him to be rated up if he went with an underwritten plan? If so, keep in mind that the standard rating for the non-med plans are already rated up to a Table C or more.
Also, if you are inexperienced (and I dont know one way or the other), don't assume that a risk factor leads to being rated up. Even with underwritten plans, many conditions still fall within standard, or even preferred, if they are controlled.
Since this fellow is a smoker his rates are high to begin with. I would seach out a good underwritten plan to bring the rates down a little or a lot. I occasionally do a non-med plan when I know that the client will end out rated up around a D anyway just based on weight for example and if he is a truckdriver or someone hard to nail down for phone interviews and parameds. Very seldom though.
Winter
- Thread starter
- #13
- 5,938
Yes - we target market "impaired" type clients or those not generally qualified for underwritten - ie: overweight, diabetes, etc.
If a client is a prospect for a fully underwritten plan and wishes to jump through the hoops - by all means. We just don't make that a focus point in our marketing.
Tom
- 2,908
As an agent we control whether we make a non-med plan look good or an underwritten plan look good.
If you go the NAA route and tell them that they will be poked and prodded and needled and may die during the paramed exam then they dont want an underwritten plan.
If instead you tell your smoker client that by just doing a quick paramed exam you can quite possibly keep them from paying twice as much every month for the next 30 years and put the difference in their gas tank then believe me they are interested.
Please dont give me the "let the client decide" jive. We control much of their decision with very, very limited exceptions.
I can only say again that your statement about clients "generally not qualified for underwritten plans" simply does not compute. Underwriting is simply a matter of looking at more information to give them the best rate versus assuming that they are rated up which is what you are doing with a non-med plan. You are essentially making your own decisions about how they would do in underwriting. You mentioned "diabetes." Most conrolled, non-insulin diabetes can get a standard rating in an underwritten plan unless it set in early in life but you assume that non-med is right for them. Non-med equals a table 3 or 4 rating.
Anyway. We are just jousting. Your goal is to sell non-med like NAA so all your clients need to look like non-med cases. Yes, I know the whole piece about how you probably have underwritten plans available where appropriate etc.
Wnter
- Thread starter
- #15
- 5,938
The non-med route is the path of least resistance.
Easier to train - Easier to sell. ( At least from my perspective )
But - if the client does want to take the extra steps - by all means. We want the best value that is convenient for the client. If the rate is better - we just make the face bigger to keep the policy average at $50 a month. Basically - the client dictates our course of action . . .
Tom
psrayburn
Expert
- 48
So let me understand this, You base your recommendation on $50.00 per month, not what his actual needs are? Is that right?
Just curious?
Scott
- Thread starter
- #17
- 5,938
No - we just try to keep the premium around $50.
This number seems to be the "sweet" spot.
It's not like we are insuring a 30 y/o married couple with 3 kids and a $300k mortgage.
Our target marketing attracts us to the 40 to 60 y/o blue collar lower middle income level prospect that may have an issue or 6 that discourages them from seeking the AccuQuote type rates.
I hate the word - but basically we are marketing Final Expense products. So - the "need" is to be able to bury 'em. If they are young enough - the face can be bigger and they can leave some to whomever. But - $50 is affordable for our class - much more than that and the stats show the persistency drops . . .
Tom
Thanks, Tom. That's very good info... I appreciate your sharing it. For a narrow-market strategy, that's a good approach, but some of us take whatever comes through the door, and would not start with the premium cost. How-some-ever, if I am approached by a prospect in the described socio-economic status, the info you provide is certainly something to keep in mind!
psrayburn
Expert
- 48
Good Info Tom, Im impressed
Scott!
Scott!
