Experienced FE Agents and Replacements

[wealth2u]

I have never sold a FE policy so I am not judging but am curious...

Are there any experienced FE agents who earn a decent living without relying on replacements? I am not talking about replacing the way overpriced stuff out there or the AARP term. But replacing some of the so called "go to companies" that are mentioned here on the forum.

What approximate percentage of your business is writing a new policy without replacing versus writing a replacement?

On average what percentage of DM leads already have a policy?

And finally, do you think it is in the policyholder's best interest to replace a policy with a decent company if it only saves them a few dollars a month and they have to go through another 2 year contestable period?

 

[Newby]

I have never sold a FE policy so I am not judging but am curious... Are there any experienced FE agents who earn a decent living without relying on replacements? I am not talking about replacing the way overpriced stuff out there or the AARP term. But replacing some of the so called "go to companies" that are mentioned here on the forum. What approximate percentage of your business is writing a new policy without replacing versus writing a replacement? On average what percentage of DM leads already have a policy? And finally, do you think it is in the policyholder's best interest to replace a policy with a decent company if it only saves them a few dollars a month and they have to go through another 2 year contestable period?

I mostly replace unsuitable policies (term or non-guaranteed ULs, graded policies,etc. ) if I replace another WL it has to be able to get them several thousand more coverage for the same or less premium.

If they just bought a policy in the past month or two I will replace it more aggressively if they seem to still be shopping.

In 20-years I have never had a death claim that they regretted the replacement. The main thing is to be super clean on health underwriting if you replace an existing policy.

Probably 50% is new sales vs. replacing something.

I guess I should add that I'm selling less and less FE policies myself these days. But I've sold quite a bit in the past few years.

 

[jdeasy]

I have never sold a FE policy so I am not judging but am curious...

Are there any experienced FE agents who earn a decent living without relying on replacements? I am not talking about replacing the way overpriced stuff out there or the AARP term. But replacing some of the so called "go to companies" that are mentioned here on the forum.

What approximate percentage of your business is writing a new policy without replacing versus writing a replacement?

On average what percentage of DM leads already have a policy?

And finally, do you think it is in the policyholder's best interest to replace a policy with a decent company if it only saves them a few dollars a month and they have to go through another 2 year contestable period?

Just from talking to agents quite a bit I would say that most don't "rely" on replacements.

As far as what's suitable for the replacement, if it's in the best interest of the person then it's a good replacement. Regardless of the company being replaced.

A lot of factors go into deciding best interest. Only one of them is price.

As for the number of people sending cards that already have life insurance? I don't know because I don't track stuff like that but I can say it's a far higher percentage than it used to be. I saw that Newby said half do. I wouldn't be surprised if that's an accurate number.

I do prefer to meet with people that already have life insurance. That's one reason I prefer the lead card not say life insurance on it. It seems that many with life insurance don't return those cards because they think they are good. When in fact they may have term or UL or, even worse, LH or Bankers Life.

 

[SPUR CITY]

I have never sold a FE policy so I am not judging but am curious... Are there any experienced FE agents who earn a decent living without relying on replacements? I am not talking about replacing the way overpriced stuff out there or the AARP term. But replacing some of the so called "go to companies" that are mentioned here on the forum. What approximate percentage of your business is writing a new policy without replacing versus writing a replacement? On average what percentage of DM leads already have a policy? And finally, do you think it is in the policyholder's best interest to replace a policy with a decent company if it only saves them a few dollars a month and they have to go through another 2 year contestable period?

I earn a good living without having to try and replace everything I run into. I have walked away from MANY appointments where the client is in good hands with their current coverage. I will always always always try and add more coverage to those same people.


70-80% would be my guess as to the amount of new business I place inforce and maybe 20%-30% replacements. And my replacements usually come from term policies like AARP and Globe or overpriced WL products like Lincoln Heritage, Bankers Life and a few others.


My guess would be 35% of my DM leads already have some sort of coverage, whether it be term, Pre-need or WL. Some hang up on my appt setter and give us no shot to get in front of them and others allow us to set an appointment. Again, all these numbers are off the top of my head and somewhat of an educated guess.


I try not to consume myself with all of these kind of questions. I put my head down and get to work and after doing this for a decade I know the numbers will work out just fine.


As long as the client knows the potential ramifications as far as replacements then all is good.

 

[jdeasy]

I earn a good living without having to try and replace everything I run into. I have walked away from MANY appointments where the client is in good hands with their current coverage. I will always always always try and add more coverage to those same people.


70-80% would be my guess as to the amount of new business I place inforce and maybe 20%-30% replacements. And my replacements usually come from term policies like AARP and Globe or overpriced WL products like Lincoln Heritage, Bankers Life and a few others.


My guess would be 35% of my DM leads already have some sort of coverage, whether it be term, Pre-need or WL. Some hang up on my appt setter and give us no shot to get in front of them and others allow us to set an appointment. Again, all these numbers are off the top of my head and somewhat of an educated guess.


I try not to consume myself with all of these kind of questions. I put my head down and get to work and after doing this for a decade I know the numbers will work out just fine.


As long as the client knows the potential ramifications as far as replacements then all is good.

Your comments are funny just because it mirrors a conversation I've been having this week with some other FEX agents. A guy just getting going was talking about tracking no shows, percentage of appointments to leads, dials, etc. My advice was to "stop that". Unless the goal was to end up with analysis paralysis, then continue.

We had quite a conversation after that with several agents. My response was simply that I have never known of a top producer that tracked all that stuff. Contrasted to seeing dozens wash out of this business by constantly preparing to do this.

I think my exact words were that the only ones I've ever heard advising agents to track all that stuff were "desk Jockeys".

 

[sirherbie]

I would say less than 15% of my business is replacement.Running a lot of net leads most people are looking for new coverage or add on. I have a tough time ethically replacing a whole life policy 3-5 yrs are older when I can save them only a few $'s or none at all.Of course another way to replacement most older policys is by telling them"sir your $2000 cash value is basically worthless. How would you like your $2000 back with the same premium for the same face amount". I track nothing but my deposits and expenses.All the rest is noise and clogs your brain with worthless info.

 

[Rearden]

I have never sold a FE policy so I am not judging but am curious...

Are there any experienced FE agents who earn a decent living without relying on replacements? I am not talking about replacing the way overpriced stuff out there or the AARP term. But replacing some of the so called "go to companies" that are mentioned here on the forum.

What approximate percentage of your business is writing a new policy without replacing versus writing a replacement?

On average what percentage of DM leads already have a policy?

And finally, do you think it is in the policyholder's best interest to replace a policy with a decent company if it only saves them a few dollars a month and they have to go through another 2 year contestable period?

I would say half of my replacements are due to replacing clean-sheeted, misrepresented policies and moving client up from partial to full coverage, and the other half are replaced either getting my future client (a) a better price for the same coverage, or (b), getting more coverage for the same price.

Many of the replacements on clean-sheeted business are "go-to" companies with laxer underwriting (no MIB/Rx checks) or the agent sold non-tobacco rates on a smoker. Other times the client was sold a graded or modified plan with limited natural death coverage that can easily be sold on a policy with full coverage from the first day.

Obviously, the outcome of the sale is mutually beneficial; you make the commission, and the client's life insurance situation is improved.

Needless to say, these types of replacements are made on contestable that, if upon the client's death, the company will contest and decline to pay due to the misrepresentation. I wouldn't replace a policy purposely or not purposely misrepresented if it is non-contestable.

This is why it's ALWAYS important - especially as a new agent - to review EVERYONE's policy; you need "at-bat" time learning how a policy is laid out, and where to look for the misrepresentation, and how to show it to the client in an effort to help them realize the severity of the problem, and to make my case as to why a replacement is in his best interest.

Of the replacements made on price alone, I make most of those at the $100 per year or more savings level than below; most aren't too terribly interested in saving a buck or two a month.

Lastly, I think developing the skill to recognize replacement opportunities is one of the biggest differentiating factors in final expense agents who do "OK" versus those who do very well.

 

[SPUR CITY]

Your comments are funny just because it mirrors a conversation I've been having this week with some other FEX agents. A guy just getting going was talking about tracking no shows, percentage of appointments to leads, dials, etc. My advice was to "stop that". Unless the goal was to end up with analysis paralysis, then continue. We had quite a conversation after that with several agents. My response was simply that I have never known of a top producer that tracked all that stuff. Contrasted to seeing dozens wash out of this business by constantly preparing to do this. I think my exact words were that the only ones I've ever heard advising agents to track all that stuff were "desk Jockeys".

I agree that the Cream of the Crop agents in the final expense business don't consume themselves with this nonsense. I find that the agents that are consumed with these kinds of questions are gone within one year anyway.


They would make better accountants than final expense agents.

 

[Baseball7]

Buy leads(20/wk) and work em'

If you can better someones situaion via replacement, do it. Can't tell me saving a client 46/mo using a RPU and new coverage isn't smart.

 

[Cyborg7]

i just checked my October production

I wrote 57 final expense apps and only 9 were replacement