How to Have Better Persistency?

[Funguy]

Hey guys,

My questions are for all experienced producers who have improved their persistency ratios.

1)What is it that you have done differently or changed to improve your persistency situation?
2)Any advice how to minimize or prevent NSF situations? (I would appreciate your wisdom a lot on this particular topic)
3)I have heard some people say persistency is better when clients have lower premium amounts such as $ 50 & below. What is your opinion & why?
4)Is your persistency better when people have bigger face amounts such as $15,000 & more?
5)Has your persistency been better in rural areas compared to bigger cities?
6) Did your persistency improve when you started to personally deliver the policies to your clients?

These are my questions & I think many other producers might be able to learn from your responses.

Thanks in advance,

Funguy

 

[Rearden]

1) To improve persistency, ALWAYS follow up on ALL lapses. Many mistakenly hadn't sufficient funds to cover the draft. Additionally, ALWAYS follow up on lapses you couldn't get months/years into the future. Rousemark said to me that people who buy from you once in the past will do so again in the future.

2) For DE Cards (and really for ALL drafts) -- follow Ben's (bboman23) advice and draft EXACTLY on the date they receive their SSI/SSDI payments. Drafting on Payday measurably improves persistency. Also pick up carriers that will do 2nd, 3rd, and 4th Wednesday drafts.

3) Higher premium policies ($80/month and up) have much better persistency for me. My hypothesis is that if the policy lapses the loss felt by the client is greater than a 20 or 30 dollar a month policy.

4) Not sure about face amounts having an effect; probably do.

5) If there is one lesson I can bestow upon new agents, it is this; working poor urban markets is Professional Suicide for a number of reasons outside of your control. I have seen skilled salespeople from other industries flounder in these markets. My rule of thumb is to target my final expense campaigns in manufacturing towns and rural communities.

6) I don't deliver policies; have considered doing so, but have opted to close the appointment on the first call, not the second.

 

[term1]

Rearden how do you handle amendments if you don't deliver policy's?Also do you call new clients before there first draft date?

 

[onefastpony]

Rearden how do you handle amendments if you don't deliver policy's?Also do you call new clients before there first draft date?

If there is an amendment then you have no choice to deliver the policy unless you have "faith" that the client will follow your instructions on signing the amendment and mailing it back. I don't!

In regards to calling for the first Draft; I don't! I think it sets up expectations that you will do that every month and could lead to an E&O issue.

If they can't make the first payment then they went keep the second if you call ahead of time for the first.

Just my .02

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Here is case of helping persistency.

I received two notices about two and half months ago about NSF for two different carriers. I called one of the clients when I received the NSF and the other one the phone # was disconnected.

This morning I called the one client and told her I was on my way to her home to talk with her and that I would be there at noon. Once there we spoke and she said that she had to go visit her son in Georgia in June and therefore her payment on July 3rd was NSF. She said that she really wants the coverage but now can't afford the quarterly bill from Monumental. So I wrote her a new policy with 5-Star.

I stopped at the other home which was just a few streets over. I began speaking with the client and she said that she had taken care of it and that Americo had double drafted her last month so she is now current. I said that is great. I then asked if there were anybody else in her family that she wanted me to talk with. She said that she wanted to get a policy for her son but she didn't think he could qualify. Her son was right there and had by-pass three years ago. No other medical issues. I wrote him up with 5-Star for $51 a month.

 

[Bittersweet614]

Hey guys,

My questions are for all experienced producers who have improved their persistency ratios.

1)What is it that you have done differently or changed to improve your persistency situation?
2)Any advice how to minimize or prevent NSF situations? (I would appreciate your wisdom a lot on this particular topic)
3)I have heard some people say persistency is better when clients have lower premium amounts such as $ 50 & below. What is your opinion & why?
4)Is your persistency better when people have bigger face amounts such as $15,000 & more?
5)Has your persistency been better in rural areas compared to bigger cities?
6) Did your persistency improve when you started to personally deliver the policies to your clients?

These are my questions & I think many other producers might be able to learn from your responses.

Thanks in advance,

Funguy

I agree with the idea of drafting near the date their SS check comes in, I usually set it up for 2 days after though (had a few problems with same day deposit/draft)

I think that personally delivering the policy helps just because they get to see you again and you can reaffirm the reason they bought it.

Even though it may sound old fashioned the one thing that, I believe, has helped my persistency the most is building a relationship with them. It may take a few extra minutes but it is worth it. And it doesn't have to be complicated, just talk about life, their kids, your kids (if you have any), interests they may have. Typically I avoid Religion and Politics for obvious reasons.
People will buy FE from you because they need it and what you are offering makes sense, but they are more likely to keep - and not even talk to competition - if they like you.

 

[Mattschmidt]

My advice to persistency is to work with people who have the financial means to pay for the coverage and who truly want the coverage.

If that means turning down people without checking or ssavings accounts so be it.

Choose your clientele

 

[TwiLight]

My advice to persistency is to work with people who have the financial means to pay for the coverage and who truly want the coverage.

If that means turning down people without checking or ssavings accounts so be it.

Choose your clientele

REALLY, My method involves an NRA membership..... Works for me.

 

[John Galt]

1) To improve persistency, ALWAYS follow up on ALL lapses. Many mistakenly hadn't sufficient funds to cover the draft. Additionally, ALWAYS follow up on lapses you couldn't get months/years into the future. Rousemark said to me that people who buy from you once in the past will do so again in the future.

2) For DE Cards (and really for ALL drafts) -- follow Ben's (bboman23) advice and draft EXACTLY on the date they receive their SSI/SSDI payments. Drafting on Payday measurably improves persistency. Also pick up carriers that will do 2nd, 3rd, and 4th Wednesday drafts.

3) Higher premium policies ($80/month and up) have much better persistency for me. My hypothesis is that if the policy lapses the loss felt by the client is greater than a 20 or 30 dollar a month policy.

4) Not sure about face amounts having an effect; probably do.

5) If there is one lesson I can bestow upon new agents, it is this; working poor urban markets is Professional Suicide for a number of reasons outside of your control. I have seen skilled salespeople from other industries flounder in these markets. My rule of thumb is to target my final expense campaigns in manufacturing towns and rural communities.

6) I don't deliver policies; have considered doing so, but have opted to close the appointment on the first call, not the second.

Something that helps as well is writing for carriers that actually know and understand how to draft on the draft date, not at 12pm on the draft date. I wont name anyone specifically but there are a couple that completely muck that up time and time again, they are by far the 2 carriers with my worst persistence and it comes from not drafting correctly, either 1st draft or they dont understand to draft on a Friday if the 3rd falls on a Sunday, cmon people its 2014. Im just saying pick your carriers carefully. The others I have the only time I have an issue is once in a blue moon when an insured just gets stupid and spends the money, otherwise my book of business looks great compared to the carriers that just dont really get it.

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REALLY, My method involves an NRA membership..... Works for me.

I like your method.

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My advice to persistency is to work with people who have the financial means to pay for the coverage and who truly want the coverage.

If that means turning down people without checking or ssavings accounts so be it.

Choose your clientele

Matt, I know you are right, really you are and I am just about to that point, however in da south it would cut 35% to 40% of my ap. I know, its sad, I need to move closer to the midwest

 

[Mkopper23]

Do any of you still hand deliver the policy to re-close the sale to be sure they can afford the policy and to once again go over the draft date to be sure they always have that money in the account on that date.

I will tell my clients that if the money is still there it will be drafted and there should be no reason to spend that money. I let them know that they are doing this for their families and missing a payment which almost always leads to a cancelled policy will cause their family all the financial stress they are trying to avoid.

Im newer to the business so I am not sure if this will help over time or not...thoughts?

 

[WinoBlues]

Do any of you still hand deliver the policy to re-close the sale to be sure they can afford the policy and to once again go over the draft date to be sure they always have that money in the account on that date.

I will tell my clients that if the money is still there it will be drafted and there should be no reason to spend that money. I let them know that they are doing this for their families and missing a payment which almost always leads to a cancelled policy will cause their family all the financial stress they are trying to avoid.

Im newer to the business so I am not sure if this will help over time or not...thoughts?

I try not to write broke people so I I do not call them to make sure their money is good. However, building a book and cross selling the family is a strong reason to deliver policies. I want to be their agent. Their guy. When someone ask about insurance I want them to refer their guy.