What % of Your Business?

I always considered FE a product and not a market/demographic... at least until I came to this forum...

If you are dealing with super low income or deadbeats then I guess pushing SI makes sense. But I dont consider that type of person a prospect in the first place... way too many fish in the sea... at least in my city there are.

If the OP is talking about the "FE demographic" then sure, push SI since 20% will lapse in the first year or two anyway.
If you are talking about a normal middle income prospect/family, then sell a fully UW policy.

I believe with Low Income you have to look more towards the ability to pay from Irresponsible people.

Fully Underwritten products rarely have to deal with the completely irresponsible folks you run into for FE.

A big solve is, the use of Social Security Cycle Billing.... Not talking about DE cards but the True Billing/Drafting based on the Social Security payments calender that is used by SocSec.

Ex: Trans started using the Social Security Billing for ACH policies last November. Before than, NSF for Initial Payment at Transamerca was about 15% for my office in Michigan. Since then we have not had one NSF and placed all initial premiums with Transamerica.

Now this clearly works and if they would only allow this Draft method with fully underwritten plans, you would see more F/U in the FE Market. IMHO.

Skipper
 
I believe with Low Income you have to look more towards the ability to pay from Irresponsible people.

Fully Underwritten products rarely have to deal with the completely irresponsible folks you run into for FE.

A big solve is, the use of Social Security Cycle Billing.... Not talking about DE cards but the True Billing/Drafting based on the Social Security payments calender that is used by SocSec.

Ex: Trans started using the Social Security Billing for ACH policies last November. Before than, NSF for Initial Payment at Transamerca was about 15% for my office in Michigan. Since then we have not had one NSF and placed all initial premiums with Transamerica.

Now this clearly works and if they would only allow this Draft method with fully underwritten plans, you would see more F/U in the FE Market. IMHO.

Skipper

Skipper I like the SS draft date idea. Have not used it but will.

Do you really think your average true final expense agent will write much fully underwritten? I can see traditional life guys writing a fair amount of SI but not the other way around on a regular basis. Does not seem as though it would fit the quick in and out appointment model. Much less the get paid in a couple days model. Two different worlds.

Just my 2 cents.
 
Fist off, the comp should not matter. What should matter is what is best for the client.... Write a decent amount of biz and you can find good comp. If a client can be approved for a fully underwritten policy then it is by far a MUCH better product. SI/GI charges a higher rate for the same DB. By taking the "easy way" and pushing SI, you are screwing your clients who could be approved for a fully underwritten policy. Yes SI is less hassle for the agent. Yes SI pays quicker than fully underwritten. But is that really worth screwing over good people who are putting their trust in you????? Fully UW policies are not that big of a PIA. If you have a good upline they can do a lot of the PIA work for you if it really bothers you that much. All it takes is one or two extra phone calls and a little bit longer of an app. But in return the client either pays less or gets a higher DB for the same premium. And if you can commit to that $75k with one IMO then many will gladly pay you higher comp than what you listed (85% is not high). If someone is a 300lb asthmatic with COPD and high blood pressure, then write a SI policy. Or if they are just dead set against a medical exam then write SI. But if they can pass UW then do the right thing. Making an extra phone call to set up a paramed exam and waiting a month to get paid will not kill you. And you will be doing the right thing for your client. To answer your initial question; 99.5% of my life business is fully underwritten. Check out a good IMO like Pinney, they give excellent backroom support and street level comp with no production requirements. If you have decent production history and can commit it to them they will give you above street.

I COMPLETELY Disagree with the above comment.

Are you SCREWING your client by not saving them money on a premium? Or are you SCREWING them when the case you wrote never gets issued and they didn't get any protection?

FU written cases don't place as often as SI for a variety of reasons. More difficult UW, scheduling Paramed, longer time for policy to issue if successful UW. Not to mention the rookies I see who believe they are doing them a favor taking them FU and then the get declined and really SCREW the client over.

Simplified Issue has it's place and so does Fully Underwritten.
 
I COMPLETELY Disagree with the above comment.

Are you SCREWING your client by not saving them money on a premium? Or are you SCREWING them when the case you wrote never gets issued and they didn't get any protection?

FU written cases don't place as often as SI for a variety of reasons. More difficult UW, scheduling Paramed, longer time for policy to issue if successful UW. Not to mention the rookies I see who believe they are doing them a favor taking them FU and then the get declined and really SCREW the client over.

Simplified Issue has it's place and so does Fully Underwritten.

I have been writing both FU and SI for a few years now. The vast majority are issued as applied. I have found if there is a lot of declines or OTAs it is the agent not field underwriting the client properly. Not in every case of course.

I do write SI and Non Med regularly, it is just not my default. There are also different levels of SI and Non Med, at least to me. Just different ways of doing what we do.
 
I COMPLETELY Disagree with the above comment.

Are you SCREWING your client by not saving them money on a premium? Or are you SCREWING them when the case you wrote never gets issued and they didn't get any protection?

FU written cases don't place as often as SI for a variety of reasons. More difficult UW, scheduling Paramed, longer time for policy to issue if successful UW. Not to mention the rookies I see who believe they are doing them a favor taking them FU and then the get declined and really SCREW the client over.

Simplified Issue has it's place and so does Fully Underwritten.

Im guessing you are an FE agent... lol.

I didnt say that SI does not have its place. And if you check the UW guidelines (which are very easy to find for most carriers) you DRASTICALLY limit the amount of declines.

In other words, if you do your homework with FU then you can put the client in a much better position. The only exception would be the newer express term policies that are out there like Anico's, which are very competitive with fully underwritten term.


Its called field underwriting.... if they can pass UW and are able to be responsible about making payments then you most certainly are screwing them by pushing SI.

A knowledgeable and proactive agent should have VERY few declines... if you are just blindly sending cases to fully underwritten carriers with no field underwriting then yes, you will screw some clients that way. But if you sell in a responsible manner that will not be an issue...

Fully learn the business and you can fully service clients in a proper manner. I sell both types of products. But SI is a last resort. Proper field underwriting will eliminate many of the issues you perceive FU products to have. It is just a matter of doing your homework.
 
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