Who Do You Like for "ease of Doing Business & Best Comp" on Term?

[VolAgent]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

I thought Mass just repriced their term? Isn't it now competitive with the majority of the companies out there?

 

[CFP83]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

Heres the thing. What type of term and for what purposes are you wanting this for? You mentioned that not a high amount of your MM term business is getting converted, so you are looking for other carriers where conversion is not the main selling point... am I right in saying this?


Whats wrong with Penn? I know you use them some, their term is priced competitively...

Both good questions....sorry for not being a little more clear in what exactly I'm looking for here with my term business.

As I have shared in the past, I spent the first 6 years of my career with NML. Let me clarify my question I began this post asking by first stepping back and giving a little background. Converting term insurance to permenant is a topic I was ask to guest-speak about to other agencies around the country during my NML days. It's not real rocket-science in what my staff and I do, it's actually more of having a standard and sticking to it, our term conversions start by educating the client up front while setting the expectation for conversions before the initial sale is even complete. For example, when setting a life portfolio for clients ages 25-45 I first make sure we get as much insurance as they need/will need in the foreseable future (part art part science). Next, since I do a monthly budget with every client, the client and I determine how much of their monthly budget surplus they want to use "to fix this problem". From there we get as much permanent as the budget will allow and then fill the rest of the need with term, knowing that as their finances grow it will allow for future conversions.

Now with that background, back to the post topic. For the typical 25-45 year old client that I described above I follow the above process, only now writing Mass perm and term instead of NML. What about the "other" situations we in this business run into regularly where, because of the clients age/financial situation/lack of potential/bias against permanant cover, the likiley-hood of conversion or future opportunities is extremely low. Take a 58 year old needing 350k of 10 or 15 year term who only wants to cover the remaining years of the mortgage? I want to place the coverage that this guy needs but I also don't want to be silly in selling him Mass Mutual/Penn Mutual and take much less compensation when there is no value proposition in doing so for the client or myself.

Another example, this isn't politically correct but let's be honest, we all know when we're sitting in front of someone who just wants to pass through in life and isn't destined to ever make a big splash or rise above their current mediocre situation. I come from a full family of factory workers so let's use them for an example, let's take a young factory-worker needing a few hundred thousand of coverage on a budget of $500yr....you want to help this guy and his young family but can't go broke doing it. My thoughts are that with someone who fits this profile and who can only spend $500 a year I have to have an easy, quick, and profitable term carrier to turn to. I can't continue to do as I have in the past, which is write this case through my "mother mutual" and make 65% on $500...just can't do it anymore. Now if I can make 120-130% I can cover my expenses/overhead/staff time and still turn a small profit.

I hope this helps clarify what I am trying to explain here. I look forward to all of your feedback

 

[scagnt83]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

I hope this helps clarify what I am trying to explain here. I look forward to all of your feedback

So in short, you are looking for a strong company with top comp and competitive rates if I understand correctly...

Again, I will recommend cinci on all counts.
You might not get 130%, but they definitely have above street contracts available with proof of production.

After that ING has high paying contracts (probably higher comp than cinci for most producers, but cinci's rates are better)

AIG and West Coast both have good contracts available too.

Why not get contracted with both Cinci and ING, give them both a try with a few cases, and then see who you like doing business with better and go with them as your primary.

 

[nycagent]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

The one issue w/ING is that no one knows what will become of their Life Insurance business, we just know that something will happen - sold or spun off or something else. Not a big deal for term that you will never convert I suppose.

 

[scagnt83]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

The one issue w/ING is that no one knows what will become of their Life Insurance business, we just know that something will happen - sold or spun off or something else. Not a big deal for term that you will never convert I suppose.

I dont worry too much about ING being spun off.

Its a strong book of business and will most likely be bought up by someone reputable.

But if conversion to a permanent policy with a focus on CV is a concern I dont use them.
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I thought they had taken their life book of the market anyways? I certainly could be wrong about that though

 

[WinoBlues]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

I second Cinci. As one of the options.

On conversion. I do as many conversions as anyone I know. Most of them never had intention to convert. Most were dedicated termites. Stuff changes.

I can think of a hand full of conversions I have done in the last year or so the were over $5K AP where the clients had zero intent to convert. At least half were orphans. Most times the agent was still in the business.

Anyone out there want me to service their " not interested in conversion" clients. I would be happy to do it.

 

[scagnt83]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

On conversion. I do as many conversions as anyone I know. Most of them never had intention to convert. Most were dedicated termites. Stuff changes.

I can think of a hand full of conversions I have done in the last year or so the were over $5K AP where the clients had zero intent to convert. At least half were orphans. Most times the agent was still in the business.

Anyone out there want me to service their " not interested in conversion" clients. I would be happy to do it.

Same here.

With most companies, clients get conversion letters that the agent is copied on.

I always follow up on these letters when the client receives them.

The managing partner at the local GA I work out of has a good bit of cinci term biz that he wrote on 45-60 year olds thats now 8-10 years old.

He focuses more on management and "select" clients, so he throws all the conversion letters my way and lets me call on them.

I usually do about 1-2 conversions per month off of just his book alone.
Most average $1200-$2400 per year in premium.

Its usually for someone who is 60+ and realizes they still need coverage after all these years.... go figure, right...


But yeah, if anyone wants me to follow up on conversion letters to the 50+ crowd I would be all over it!

 

[WinoBlues]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

>>....But yeah, if anyone wants me to follow up on conversion letters to the 50+ crowd I would be all over it!

Hey me first.


Tell you what. You take east of the Big Muddy and I will take west.

Same here.

With most companies, clients get conversion letters that the agent is copied on.

I always follow up on these letters when the client receives them.

The managing partner at the local GA I work out of has a good bit of cinci term biz that he wrote on 45-60 year olds thats now 8-10 years old.

He focuses more on management and "select" clients, so he throws all the conversion letters my way and lets me call on them.

I usually do about 1-2 conversions per month off of just his book alone.
Most average $1200-$2400 per year in premium.

Its usually for someone who is 60+ and realizes they still need coverage after all these years.... go figure, right...


But yeah, if anyone wants me to follow up on conversion letters to the 50+ crowd I would be all over it!

 

[scagnt83]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

>>....But yeah, if anyone wants me to follow up on conversion letters to the 50+ crowd I would be all over it!

Hey me first.


Tell you what. You take east of the Big Muddy and I will take west.

Lol. Fair enough! You did beat me to it.

How about I just give you a cut of anything that comes my way from pimping myself since it was your idea!...

 

[WinoBlues]

Re: Who Do You Like for "ease of Doing Business & Best Comp" on T

Lol. Fair enough! You did beat me to it.

How about I just give you a cut of anything that comes my way from pimping myself since it was your idea!...

I like it. ...