Renewals

[jn8691mr]

Hello everyone... First post here ... I'm very new to the insurance game ... My question is how long should it reasonably take it better yet, how long did it take you to get to the point where you are getting $1,000 per month in renewals? $2,000? $5,000?

I know everyone hits hurdles at different times. Really just wondering and wanting something to not only strive towards, but look forward too.

 

[Newby]

Hello everyone... First post here ... I'm very new to the insurance game ... My question is how long should it reasonably take it better yet, how long did it take you to get to the point where you are getting $1,000 per month in renewals? $2,000? $5,000? I know everyone hits hurdles at different times. Really just wondering and wanting something to not only strive towards, but look forward too.

If you want to build a renewal base adding Med Sup or a product that pays strong renewals makes it easy. If you figure average commission of $200 on med sups, you only need 5sales a month to get to $1,000. That will pay the same renewal for six years minus deaths or cancelations. So one year in you can easily surpass your goal.

If you are doing only life and figure an average renewal of 5% you would need to place $20,000 per month with zero lapses to reach $1,000 monthly renewals in one year. Not likely for a first year agent. Three years in for most agents you could be getting there.

Most of us just sell all we can and the commissions work themselves out soon enough.

 

[Tahoe Ray]

Hello everyone... First post here ... I'm very new to the insurance game ... My question is how long should it reasonably take it better yet, how long did it take you to get to the point where you are getting $1,000 per month in renewals? $2,000? $5,000?

I know everyone hits hurdles at different times. Really just wondering and wanting something to not only strive towards, but look forward too.

In addition to med supps...DI and LTC have solid renewals.

 

[jn8691mr]

Thank you for the info! Good to know

 

[FRJ]

As usual, it depends. Renewal rates vary by product - if you only did Final Expense then it would take you one year after earning about $250K in annual premium to generate $1000 in monthly renewals (rough numbers, vary by actual renewal % commission). Medicare Supplements, a year after $60,000 AP on the books would do it. Another way to look at it - roughly 275 FE clients or so versus 40 med sup clients.

Of course, you'd be a hell of a lot richer after the first year with 275 FE clients than 40 med sup clients.

 

[GoPokes]

FE pays you now, medsupps pay you later....in a nutshell. Of course there's the other products sprinkled in there.

 

[axeman462]

Hello everyone... First post here ... I'm very new to the insurance game ... My question is how long should it reasonably take it better yet, how long did it take you to get to the point where you are getting $1,000 per month in renewals? $2,000? $5,000?

I know everyone hits hurdles at different times. Really just wondering and wanting something to not only strive towards, but look forward too.

Figure 3-5 years before you have a comfortable renewal base.

 

[Cash]

If you sell 1 DI policy a week you will have over a $1,000 a month in renewals after one year. DI policies stay on the book an average of 12 years. I think I heard FE policies stay on the books an average of 3.5-4 years.

----------

Of course it depends on the size of the DI policy.

 

[jn8691mr]

So it's not unrealistic for an "average" producer to be in or around the neighborhood of $3,000 per month in renewals per month by year 3?

 

[Cash]

So it's not unrealistic for an "average" producer to be in or around the neighborhood of $3,000 per month in renewals per month by year 3?

The average producer won't be in business in 3 years. But yeah three years in DI and less than that in Med Supps.