Final Expense With No Chargebacks

[Newby]

You're forgetting that many of the new agents getting into the biz really are going paycheck to paycheck. They really DO have to have a check each week to buy groceries. And if they don't have a reserve of some kind, getting hit with chargebacks will kill them.

Yes, it's better to build your own reserve. That's what I do as I've posted many times. But if someone doesn't have the willpower (or a spouse that's a spender) having the company do it is the next best thing.

Which companies charge interest on the advances? It is my understanding that if I have a charge back and pay them promptly there is no interest. If I don't pay them within a time period there would be interest. Is that wrong?

 

[G.Gordon]

Which companies charge interest on the advances? It is my understanding that if I have a charge back and pay them promptly there is no interest. If I don't pay them within a time period there would be interest. Is that wrong?

Almost every contract I've ever read has a fee/interest charge for the agent account balance.

I understand the state of new agents finances. I lived it. I just want to draw their attention to the fact that taking an advance is not something you want to do for your whole career. Get off the tit ASAP. Unless you can find that one-in-a-million advance contract that does not charge any fee what so ever... it's better to take as earned. That and it builds a real sweet feeling knowing you have $xx,xxx dollars coming in next month without making any sales.
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And...

IMO taking advances cripples an agents production more than not. Say Joe needs $800/wk to survive. 9 out of ten 10 weeks all Joe is going to sell is about $801-1000/wk worth of advance commissionable sales. Now let one fall off or get charged back... WHAM!.. Joe's week sucks.

So instead let's assume Joe forces himself to take a 6 mo. advance instead of 12 months. Now Joe has to sell twice as much to make it. The positive to this is that when all those policies reach the 7th, 8th, 9th months, etc. he's got one sweet and secure as earned income stream.

As that as-earned-stream increases Joe goes for the 3mo advance then later none...

 

[jjjtrio]

Hold 15% out and place in a 30 day CD or Money Market account to earn some interest.