Why Not Specialize in Term Insurance?

[xrac]

......Term insurance doesn't require any skills to sell.......

DHK, I think it would be more accurate to say much less selling skills.

 

[term2u]

What is your process? Is this in home sales or phone? Do you esign if phone sales or mail apps?

I typically will complete the app with the client over-the-phone (takes about 10-15 min), and then I will scan and email over the application. I make 2 attachments on the email - 1 is the full app, that we've already completed together, and the 2nd attachment is just the signature pages, which I've already highlighted the areas for them to sign.

The client then just looks over the full app on their computer and make sure it's all correct, and then prints off and signs the signature pages. They then usually either scan and email the signature pages back to me (usually 4-6 pages), or fax them.

I know that this seems like a lot of work, but I almost think it's easier, as I don't even complete the non-med (part II) with them on the phone. I ask that the med examiner complete it during the exam. I wish more carriers would allow for DocuSign, so that I could just complete the pdf with them on the phone and email it over.

Am I way off base here? I've tried the iGo and I despise having to complete the non-med (part II) with the client.. I figure that's what the medical examiner is for. I always prequal beforehand to decide which carrier to go with, but that's it.

Any input would be appreciated.

 

[Cash]

I don't specialize in "term". I specialize in solutions to my client's problems.

Term solves one problem and does it well.
Permanent life solves many problems and can also do it well.

Term insurance is an easy sale, so where it fits, I sell it... or more accurately, when nothing else immediately fits, I sell it.
Permanent life is also an easy sale... as long as the agent makes it simple.

Term insurance doesn't require any skills to sell.
Permanent life does require skills to explain simply to help the client understand it.

Term has a lower premium, but I'm also in this business for the long haul and plan to serve and convert these policies.

There is nothing to "specialize" with term. Either you sell it or you don't.

Maybe for the friendly neighborhood agent it isn't a specialty, but for the call center/websites it is. That is why it is hard for the friendly neighborhood agent to do well buying leads because they are going up against "specialist" that have systems in place that the neighborhood agent doesn't. We have all seen or heard of the horror stories of guys blowing tons of money on leads because they couldn't compete with the specialist.

I was just telling another guy here on the forum that to specialize in term, what really is meant is to specialize in the family market. Within the family market, term reigns supreme but you can sell them WL/IUL, convert their term over time, sell them DI and CI, IRA's, etc.

Almost every family needs term, even if they are buying perm. If they buy term from you, you can show them later how owning some perm can give them lots of options, such as giving them the ability to use single life annuities vs joint and actually increasing their retirement income. Perm can allow them to keep more money in the market, allow them to not sell their securities when the market is down and instead borrow from their cash value, etc.

That is a lot to put on the guy whose wife is on him to get insurance. Selling them term, which they need anyways, allows you to get to know them, build some trust, and show them some other things.

So yeah, term "specialist" is probably the wrong term () for most of us outside of the web/phone sales/call center guys. But term is the life blood of the family market and the family market is a specialty.

 

[NinjaNic]

I typically will complete the app with the client over-the-phone (takes about 10-15 min), and then I will scan and email over the application. I make 2 attachments on the email - 1 is the full app, that we've already completed together, and the 2nd attachment is just the signature pages, which I've already highlighted the areas for them to sign.

The client then just looks over the full app on their computer and make sure it's all correct, and then prints off and signs the signature pages. They then usually either scan and email the signature pages back to me (usually 4-6 pages), or fax them.

I know that this seems like a lot of work, but I almost think it's easier, as I don't even complete the non-med (part II) with them on the phone. I ask that the med examiner complete it during the exam. I wish more carriers would allow for DocuSign, so that I could just complete the pdf with them on the phone and email it over.

Am I way off base here? I've tried the iGo and I despise having to complete the non-med (part II) with the client.. I figure that's what the medical examiner is for. I always prequal beforehand to decide which carrier to go with, but that's it.

Any input would be appreciated.

you need esign. Bad.

check out ezlife. Not because I work for the firm, but because it truly works. You fill out a ticket, submit and live transfer the client to our call center. We get the app e-signed using technology the average agent doesn't have access too. Far less buyers remorse and because clients get the feel that we are much larger than just their agent, they sign/complete exams etc. in larger numbers. I bet your fall off with doing your own scanned apps is pretty high..like 30-40%. Ours is 7-11% depending on agent submitting.

 

[DHK]

None? Geez...I guess selling thousands of term policies over the years could have been done by my 7 year old son. What is the minimum licensing age these days?

Running a business to sell term insurance requires high business and prospecting skills. But that's not what I was referring to.

Once you're face-to-face with someone who wants to "only buy term insurance" and you run those quotes, and they buy... that's 'order taking'.

Granted, LOTS of agents make a living doing that, but it doesn't take any selling skills.

 

[term2u]

you need esign. Bad.

check out ezlife. Not because I work for the firm, but because it truly works. You fill out a ticket, submit and live transfer the client to our call center. We get the app e-signed using technology the average agent doesn't have access too. Far less buyers remorse and because clients get the feel that we are much larger than just their agent, they sign/complete exams etc. in larger numbers. I bet your fall off with doing your own scanned apps is pretty high..like 30-40%. Ours is 7-11% depending on agent submitting.

Gotcha, I've heard great things about you guys from almost everyone that I know. It's actually funny.. Most of the clients that I'm selling are within the current book, and they always come back - honestly, out of about 100 apps, I've only had it happen about 1-2 times. I know that's a small sample size, but it may be because we already have a relationship with them?

I'm always looking to make it easier for the client, but I think my volume isn't up to where it should be, where I could justify the lower comp with the EZLife system, vs. what I'm currently getting now. Is this a wrong assumption?

 

[NinjaNic]

Yep. whenever I meet with someone or pick up the phone they just say "where do I sign?' 120% close rates are not out of reach, with referrals.

----------

Gotcha, I've heard great things about you guys from almost everyone that I know. It's actually funny.. Most of the clients that I'm selling are within the current book, and they always come back - honestly, out of about 100 apps, I've only had it happen about 1-2 times. I know that's a small sample size, but it may be because we already have a relationship with them?

I'm always looking to make it easier for the client, but I think my volume isn't up to where it should be, where I could justify the lower comp with the EZLife system, vs. what I'm currently getting now. Is this a wrong assumption?

ya, friends and family don't fall out that often. Different market.

 

[WinoBlues]

You should connect with jroot on here. For full disclosure, he and I work together on some projects. May be a good way to get expedited in selling by phone. I know we always have lead deals we need help fulfilling too. We all use the EZLife platform...the app completion rates are very high, exam completion rates are very high etc. FAR better than the carrier drop tickets.

Second

...................

----------

Gotcha, I've heard great things about you guys from almost everyone that I know. It's actually funny.. Most of the clients that I'm selling are within the current book, and they always come back - honestly, out of about 100 apps, I've only had it happen about 1-2 times. I know that's a small sample size, but it may be because we already have a relationship with them?

I'm always looking to make it easier for the client, but I think my volume isn't up to where it should be, where I could justify the lower comp with the EZLife system, vs. what I'm currently getting now. Is this a wrong assumption?

I have been doing term by phone a long time. I also work my book like no other agent I know. A lot of the 20-year term we are rewriting and converting I wrote 20 years ago, my inventory. My wife does all our admin. She was first licenced in 1986. We do not need EZLife for the little volume that we do now versus what we did years past. I still email and mail apps to clients. Conversions, of course, are a couple signatures and done so we do those. But we use them more and more. Especially when we get busy or have other things we want to do. Our time is more valuable.

As I am typing this she is submitting the EZLife order online on two cases, about $3,500AP. The PIs do not have email so will need wet signatures. We most likely will not need to touch this again till I review the issued policy. I know that he will be table rated so we may need to flip to another company. Their underwriter will review the case and advise. If we need to submit to another company they handle it. Need a special APS auth or Kaiser is being a pain, they handle it. They handle the stuff that frustrates the crap out of me. Do I have higher contracts with some carriers? Yup, but I only have so much time and time has value. Oh and my frustration bucket has gotten much small as I have gotten older.

Remember you can dual contract most of these companies.

----------

Running a business to sell term insurance requires high business and prospecting skills. But that's not what I was referring to.

Once you're face-to-face with someone who wants to "only buy term insurance" and you run those quotes, and they buy... that's 'order taking'.

Granted, LOTS of agents make a living doing that, but it doesn't take any selling skills.

Maybe, if you are selling $500,000 of term for $32 a month to a P+ 35 year old.

 

[waterwheel]

Why not specialize in term insurance?

As someone else already noted, don't specialize in a product. Specialize in a market.

I've been actively selling insurance for less than a decade and have thousands of clients. Almost all of them are term. Average sale is $750-$1500. And since I'm a top producer my commission rate is higher than most brokers. And my persistency/retention rate is closer to 100% than it is 99%.

So don't let anyone tell you that there's anything wrong with the family/term market. There's a lot of money available, and the market is huge.

personally, I don't even 'sell'. I educate. That's why my sales are larger and tighter than the whole life floggers.

And I have something that a permanent pusher doesn't. Round about the time I retire is when all those thousands of policies are going to renew. My client will be approaching retirement, and I expect seeking permanent insurance in large numbers. Sitting at home making bank converting large numbers of term policies doesn't sound like a bad retirement. And way easier than working a book of 20 year old permanent policies.

I'm quite happy to be in the 'term insurance market'. It works fine, and is well worth considering as a niche.

 

[term2u]

Second

...................

----------



I have been doing term by phone a long time. I also work my book like no other agent I know. A lot of the 20-year term we are rewriting and converting I wrote 20 years ago, my inventory. My wife does all our admin. She was first licenced in 1986. We do not need EZLife for the little volume that we do now versus what we did years past. I still email and mail apps to clients. Conversions, of course, are a couple signatures and done so we do those. But we use them more and more. Especially when we get busy or have other things we want to do. Our time is more valuable.

As I am typing this she is submitting the EZLife order online on two cases, about $3,500AP. The PIs do not have email so will need wet signatures. We most likely will not need to touch this again till I review the issued policy. I know that he will be table rated so we may need to flip to another company. Their underwriter will review the case and advise. If we need to submit to another company they handle it. Need a special APS auth or Kaiser is being a pain, they handle it. They handle the stuff that frustrates the crap out of me. Do I have higher contracts with some carriers? Yup, but I only have so much time and time has value. Oh and my frustration bucket has gotten much small as I have gotten older.

Remember you can dual contract most of these companies.

----------



Maybe, if you are selling $500,000 of term for $32 a month to a P+ 35 year old.

Definitely some great advice. I guess the reason why I haven't signed on with EZLife is because I usually complete low-touch apps (ie: get everything signed upfront - app, Kaiser releases, special auths, etc.). I always ask the client who their PCP is and then check the PCP's website in order to see if there's a special auth required to pull an APS.

I will say, to not have to do anything else other than completing a 1pg app, is pretty nice, but I usually submit the full app with special auth and don't really have to f/u with the client too much, other than for little requirements, if any. Because I only write about 5-10 cases a month, the around 20-30% comp differential (I'm in the 100-115% range) that I'd be losing doesn't really justify it for me. That may change, but at this point, I'm looking for as much comp as I can get.

Lastly, I have a good friend who is in the biz and deals mostly with life settlements. He used to write a TON in AP, and make a lot of money, back in the 2000-2008 era. He has a broker back East, where he gets about 130-140% with almost every carrier - He even sent me over the grid. I think he gets these levels, as his lifelong friend owns the brokerage and doesn't even require him to have any production requirements.. Pretty crazy stuff.