Economics 101. If life insurance could be sold online profitably, someone would be doing it already. Why pay the agents. Now what gets sold online is probably 0.3% of the life insurance market. Couple reasons for that is the person even if interested in life insurance, there is no urgency to complete the transaction. Most people who check online will complete how much they need and check the price quoted and stop going through the transaction when the insurance company starts asking medical questions or mentions a paramed/blood test. May be it is possible to sell online some FE policies and the occasional responsible child who wants to leave some money to their parents, otherwise this product can't be sold online. How are you going to build any urgency online? It is possible to collect names of people who may be interested in life insurance and then you still need an agent to close the sale. If we could come up with a way that life underwriters can check someone's facebook, twitter postings, klout score and just do a risk assesment based on that, may be it is possible to sell more life insurance in the future. Now who is going to friend the life insurance company or open up all their posting since middle school. Thats another story.
More Companies Selling Life Coverage Direct
- Thread starter shooter
- Start date
- 717
A number of companies are already working on BGA direct to consumer models, Banner Life is a recent example that is actively developing this model.
It's not direct to consumer, but is a test to see if traditional agent is needed in this process.
SBLI is trying their INSQUIK instant issue product out using agent to consumer, no BGA needed.
I think we'll see more and more of these tests by companies as they need increase their revenue.
It's not direct to consumer, but is a test to see if traditional agent is needed in this process.
SBLI is trying their INSQUIK instant issue product out using agent to consumer, no BGA needed.
I think we'll see more and more of these tests by companies as they need increase their revenue.
- 1,405
I'm not the one who said: "They use us but they don't like us. ". You said it. I asked if you knew why and you tell us you don't care. If you don't care, why did you say it?
- 4,132
Ok Bob, they don't like us because they have to pay us. If we're captive they don't like us because they have to provide bennies.
It's about money bob, the same reason you hate unions, you don't want to pay your employees what hey could collectively get from you. You don't like paying your employees, you don't like providing for their well being. You probably feel you over pay your help.... but that's just the impression you give from past comments.
Do I worry about it? not anymore, I am no longer captive and no longer put all my eggs in one company's basket.
Since you're not an agent bob and you don't sell insurance, should you be commenting again on something you really don't understand?
You provide a service to agents, yet you continue to bad mouth agents, even though your livelihood is made off of agents. I would never do business with you, but not just for that reason. There are many reasons not to do business with you.
- 8,707
Tell how you really feel. .. I get the impression your holding back.
- 4,132
Tell us how you really feel?
Actually I feel sorry for Bob, he is one of the nastiest people I have come across on this planet. It's too bad that old section of this forum was taken down as his character was on display for agents to see.
I find it sad that he has taken that attitude over to this part of the forum because well, it's where he makes his money. The bad mouthing agents in these sections can't be good business for him. It's sad he doesn't see that.
Actually I feel sorry for Bob, he is one of the nastiest people I have come across on this planet. It's too bad that old section of this forum was taken down as his character was on display for agents to see.
I find it sad that he has taken that attitude over to this part of the forum because well, it's where he makes his money. The bad mouthing agents in these sections can't be good business for him. It's sad he doesn't see that.
- 11,271
Attitude aside, Bob is clueless and ignorant about the insurance business and financial planning matters entirely. And that makes his posts dangerous to those who read his postings and think they are facts.
dirtydiggler
Expert
- 85
If people want to listen to him and not do their own research, we'll that's on them.
Regarding the op, companies like colonial Penn or NYL (AARP) sell direct because it can be more profitable to pay a $10 per hour call center employees than give an agency 150% 1st year commissions and 30% renewals.
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But if that's the reason, why don't they offer their best products that way? It's always sub-standard products that are priced very high (if the applicant is reasonably healthy) and often a 2-year waiting period.
I think they sell these products without the agents so they capture sales to healthy applicants who didn't understand that they are buying a substandard product. It's not the agent commission but the agent "teaching" the applicant what their best option is that costs them more money.
