- 287
Quick question for all of you old-timers out there. If Settlers can pay such good renewals compared to others and their rates are still reasonable then why cant other companies pay as good?
Settlers Life Renewals
- Thread starter lgreen
- Start date
Many other companies pay more on the front end so that explains some of it. Settlers' renewals look great over a ten year period but not many of your policies will stay on the books that long. If you look at it over the first five years they pay the same. At least for me anyway. Other companies pay you more sooner, which obviously is better.
It seems Settlers is trying to encourage persistency. Nothing wrong with that. But if you are looking out for #1, front loaded comp is better. Nothing wrong with that either.
It seems Settlers is trying to encourage persistency. Nothing wrong with that. But if you are looking out for #1, front loaded comp is better. Nothing wrong with that either.
- 16,876
The answer is that this is a free market and they don't have to.
When I started selling FE 10% renewals for 10 years was the norm. One by one I watched the companies bump the 1st year up 5-points and cut renewals 50-points and guess what? The agents would all call it a raise. They would respond like they got a raise.
The majority of agents only focus on 1st year commissions.
So the reason most companies pay lower renewals is the same reason that you don't sell Christian Fidelity to 75% of your applicants. You don't have to.
I guess it proves most agents live hand to mouth and you can't fix stupid.
- Thread starter
- #5
- 287
Settlers is 10 points better at 5 years than my other 2 main FE companies. However it takes them 3 years to match the other 2 companies. When I look at the 10 year payout they are 45 points better. Its a no brainer who you would want over 10 years but how many policies make it 3 years, 5 years and 10 years? Looking at fulltime FE numbers you are talking about 10-15K less by using Settlers over the 1st 2 years and I can do a lot with that. Too much of this is it just all depends and will give you a headache. Just need to go write some business today and make it better.
- 16,876
Settlers is 10 points better at 5 years than my other 2 main FE companies. However it takes them 3 years to match the other 2 companies. When I look at the 10 year payout they are 45 points better. Its a no brainer who you would want over 10 years but how many policies make it 3 years, 5 years and 10 years? Looking at fulltime FE numbers you are talking about 10-15K less by using Settlers over the 1st 2 years and I can do a lot with that. Too much of this is it just all depends and will give you a headache. Just need to go write some business today and make it better.
Settlers actually has both versions now. They have the higher 1st year/lower renewals or the lower 1st year/higher renewals.
The lower 1st year is by far their highest 10-year contract but was always hard to recruit to because the 1st year was only 100%.
Now they have both. Most companies only have the one option.
- 3,989
I was comparing this concept when looking at AIG vs Great Western. Assuming the monthly premium was the same (which it isn't) the higher contract with AIG pays the same as GW over the course of several years. Not to mention what percent of GI will be around 5-10yrs?
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