Equita Final Expense Services: Beware the FINE PRINT!

DJW

New Member
5
TN
For those of you thinking of the Final Expense business as your Insurance focus, beware of the Fine Print of some of these marketing groups.
Been looking at Lead Marketing Companies and found several seemingly decent groups to work through. Once I got into some of the contractual paperwork I found out quickly that getting in is very easy but getting out might be very costly. Some of the language in the paperwork like that of the Equita group from Dallas states that you have a moving target on lead cost based on your production, some formula based on premium generated per lead and leads could run up to $34 a lead. Also, I believe it is this same group that states that if you ever want to leave or end your lead program with them that you must give at least 2 weeks notice in writing but that you will pay $32 or $34 a lead on any mail that comes in that was sent out for you. The potential fine print trap there is how the heck do you know how much mail was actually sent out for you and how many future lead returns will you be actually on the hook for. So, if you want out and they say you owe them for another 60 or 80 leads then you will get a nice bill for $2500.00 +! Is it just me or does this seem like a very large gray area and potentially a very costly one?
I also heard through some other sources that they will never let you out of a Carrier Contract if you decide to leave and that your only recourse is to find new carriers to work with or sit out the carrier's defined sit out period.
Any of you have any experiences about trying to leave this group and are there any other marketing groups with more reasonable separation terms?

Looks like the Final Expense business is a good one but just want to ensure I know all the facts before wading in.

Still Looking.
 
You will get other answers I am sure but I want to point out a significant point. The number of leads that will come in will be only the number of leads you have ordered. When you start you gree to purchase at least 15 per week for four weeks. After that you order IN ADVANCE the minimum required to keeop the program going. So for the two weeks notice you give them you will only be out the costs of the leads you have ordered.
 
Not an EFES person but since they are doing a mail drop for you they need that 2 week period because they have already dropped lead cards for you, leads you requested in advance per thier agreement.

On the not releasing you bit, welcome to the Life & Health insurance business. Every appointment contract you sign will state something to the effect that you agree t the standard practices of the carrier...Each carrier has its own pratices in which they protect the recruiting IMO/FMO etc and have policies that you may need to go 6 months without production before your appointment can be released to another IMO/FMO ..you can call the carriers licensing dept and ask what the process is. Some carrier allow for Dual contracting meaning your previous agent number is still at EFES but you have a new one with your new IMO that you can use on day one...this is mainly for the normal life market and not FE.

I'm glad to see you are researching this stuff before signing the contracts. Just realizethere is never a free lunch with lead companies and the best way to control your business is to develop your own leads.
 
Pay with a credit card. Insist that any leads you are charged for be given to you. Dispute any charges when you don't receive the leads. If you paid for them, they are yours.
 
If you have zero risk on the returns and they are dropping when and where you request don't you think it's fair for a heads up on stopping the mail? Mail isn't cheap and returns aren't getting any better. Any person that has any character (unless they are being screwed over) and choosing to do something else can give that person a heads up.
 
I love it when someone takes the time to register for an internet forum to make 1 post to disparage someone.

Well just to be fare, I read the same thing and it concerned me as well. The OP one post or not has just said to 'beware'. The dictionary defines 'beware' as "to be cautious of danger/s".

Quite frankly, I read the same thing as this guy and would appreciate a further explanation such as the ones given. What concerned me as well was something about being reported to the carriers of having a balance due or something to that effect and this was associated with leads not bad business if I remember correctly. So you could not only have some kind of lead costs coming but also be in trouble with carriers?

Anyway, I'm sure this is the norm but just be aware and ask questions before you sign agreements or contracts as you should in other similar type situations.

If I were going to sell FE and nothing else unless it fell in my lap, I would look at EFES just like JD has said before. But you better be committed. Anything short of that and I think the agent will fail miserably.
 
As far as EFES releasing you, zero perecent chance of efes releasing you..


For those of you thinking of the Final Expense business as your Insurance focus, beware of the Fine Print of some of these marketing groups.
Been looking at Lead Marketing Companies and found several seemingly decent groups to work through. Once I got into some of the contractual paperwork I found out quickly that getting in is very easy but getting out might be very costly. Some of the language in the paperwork like that of the Equita group from Dallas states that you have a moving target on lead cost based on your production, some formula based on premium generated per lead and leads could run up to $34 a lead. Also, I believe it is this same group that states that if you ever want to leave or end your lead program with them that you must give at least 2 weeks notice in writing but that you will pay $32 or $34 a lead on any mail that comes in that was sent out for you. The potential fine print trap there is how the heck do you know how much mail was actually sent out for you and how many future lead returns will you be actually on the hook for. So, if you want out and they say you owe them for another 60 or 80 leads then you will get a nice bill for $2500.00 +! Is it just me or does this seem like a very large gray area and potentially a very costly one?
I also heard through some other sources that they will never let you out of a Carrier Contract if you decide to leave and that your only recourse is to find new carriers to work with or sit out the carrier's defined sit out period.
Any of you have any experiences about trying to leave this group and are there any other marketing groups with more reasonable separation terms?

Looks like the Final Expense business is a good one but just want to ensure I know all the facts before wading in.

Still Looking.
 
I don't have a problem with the 2 weeks notice. That's only fair.. I would expect that and I understand, or at least I think I do, that you only are charged for leads as you get them which seems to be good. But then should you part ways, according to the verbiage, you are on the hook for however many leads that continue to come in for however long they continue coming. I went back and reviewed the contract they want you to sign and it says "On Termination by Agent, ALL leads returning from mail sent specifically for agent MUST be purchased at a cost of $34 a lead".
Please tell me how that gives anyone any certainty on a timeline commitment( for how long) or how many mail pieces are going to come back? ..Because its just not there. And please don't try to tell me there's not a profit in the lead generation and sales of those leads at $34.
It just seems like it's all Great when being recruited but when you start to ask these specific questions the recruiting calls stop.
Maybe I'm too cautious but I just want to know if there are any other companies out there that there that don't want to take your first born should you divorce. I'm obviously checking out other Marketing Groups and just want to hear different perspectives.
Sorry if my post sounded negative.
 
I don't have a problem with the 2 weeks notice. That's only fair.. I would expect that and I understand, or at least I think I do, that you only are charged for leads as you get them which seems to be good. But then should you part ways, according to the verbiage, you are on the hook for however many leads that continue to come in for however long they continue coming. I went back and reviewed the contract they want you to sign and it says "On Termination by Agent, ALL leads returning from mail sent specifically for agent MUST be purchased at a cost of $34 a lead".
Please tell me how that gives anyone any certainty on a timeline commitment( for how long) or how many mail pieces are going to come back? ..Because its just not there. And please don't try to tell me there's not a profit in the lead generation and sales of those leads at $34.
It just seems like it's all Great when being recruited but when you start to ask these specific questions the recruiting calls stop.
Maybe I'm too cautious but I just want to know if there are any other companies out there that there that don't want to take your first born should you divorce. I'm obviously checking out other Marketing Groups and just want to hear different perspectives.
Sorry if my post sounded negative.

Your questions are reasonable however you may be making some assumtions in some areas. Expample: The $34 cost per mail card is not a bad deal especially in tennessee. I have tried numerous varieties and the current average is just over 5% response. If you did this on your onw at $350 per 1000, that amounts to $63.63 per lead card based on average 5.5% returns. Although I do not currently participate in EFES lead program (I ma contracted with them through 2 of their carriers) I am seriously considering it. If I purchased these at the maximum I still am better of based on the current returns.
 
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