Final Expense - 6 Month Advance Vs 9 Month

[JFG]

6 Month advance vs 9 Month. How do you like to get paid.

What is your opinion and why.

Thanks for all of your input.

This forum truly is a worth its weight in gold.

 

[jdeasy]

6 Month advance vs 9 Month. How do you like to get paid.

What is your opinion and why.

Thanks for all of your input.

This forum truly is a worth its weight in gold.

I prefer to be as earned. I do have one company that I get a 6 month advance with. It happens to be my number one company and I'm in the process of getting it to as earned as well. I'm moving to a 3 month advance with them next month.

 

[Crabcake Johnny]

I'll get bashed but I can take it; I would not take large advances for products like FE which tend to target people without a lot of money. It's one thing if you're cross-selling the product with something like med supps. It's entirely different if you're only doing FE sales over the phone.

6 months - less of an advance if available.

 

[HarryRenard]

I'll get bashed but I can take it; I would not take large advances for products like FE which tend to target people without a lot of money. It's one thing if you're cross-selling the product with something like med supps. It's entirely different if you're only doing FE sales over the phone.

6 months - less of an advance if available.

I sort of disagree, I think lower income people tend to cherish their FE more so than a white collar who just thinks I can get a new one next month. Of course it really depends on how the product is sold as long as you dont push it on them there really shouldn't be a problem.
I think most selling FE need some sort of advance because of lead costs.
I agree phone sales is entirely different.

 

[Crabcake Johnny]

I'm not against advances. They are a necessary evil for around 80% of all agents entering the insurance field.

The issue I have with advance is agents:

A) Don't save - so when chargebacks roll in they're wiped out

B) Don't understand they're loans and as they dive out of the industry to realize the effects it'll have on their credit as they're turned over to collections.

I tell agents that signing up for advances is no different than taking out a small business loan. Any one of a number of factors could put you out of business.....and you still owe the bank.

I also don't think FMO's - MGA's put their agents through the proper vetting process before authorizing advances. In the end, they're on the hook.

Right now the focus is "how can I get this agent contracted" when the focus should be "should I contract this agent."

 

[Mark]

If you can afford to do it, go as earn.

 

[VolAgent]

I also don't think FMO's - MGA's put their agents through the proper vetting process before authorizing advances. In the end, they're on the hook.

Right now the focus is "how can I get this agent contracted" when the focus should be "should I contract this agent."

You answered this in another thread about internet leads. These guys want to grow, so they are more focused on bringing any new blood, versus the right new blood.

 

[Crabcake Johnny]

I can tell you after a 5 minute conversation with any agent whether or not I'd offer them an advance. No? So they're just go with another agency? Great...later.

This is typically the clown to be worried about:

"Let me tell you about how I was a super star in everything. I was top mortgage broker and earned over 200K, then I was top this and top that. I'm a stunning salesman and can easily kill selling insurance. Oh....but I'm dead broke."

 

[eddie]

Ha! Awsome post and dead on! I had my fair share of chargebacks and as earned, for FE especially, is the way to go. They like to buy but they don't like to pay. I am not saying that it is all of them, but it happens a lot more in this market for sure.

 

[Josh]

I'd go with 6 months if you have marketing costs, 3 months if you don't. To keep writing business you do need some money on the front end to recoup your marketing costs and to continue to fuel growth.