What is your average AP on life?

Survivor · 09-24-2007, 04:31 PM

I'm gonna start working for American General. The company sells supplemental health products, annuities, and life, with the main foucs on the ladder. Because of this, I'm trying to get a feel for what the average A/P is on individual life policies. I know with mixtures of different types of whole and term it will vary, but I'm trying to figure what I'll need to do to hit my target earnings.

Also, what would you say is similar and different in a life presentation and a health presentation. In your opinion, is one easier to close than the other?

Thanks,
Derek

David C · 09-24-2007, 07:04 PM

Derek, Best of luck to you! I wish I could give you a definitive answer, if someone needs life insurance then that's easier, and if they need health insurance then that's easier.

I'm not a big life producer, my biggest AP was around 11,000. That was unusual for me. I'm sure you'll have a lot of term sales at 30-80 month, and hopefully lots of permanent sales with higher AP.

The best thing is for you to decide what you need to make and then work out the details of how much you need to sell.

WBunch · 09-27-2007, 01:34 PM

Well I won't expect you to put up numbers like this at American General because of there career agent rates, but I deal with mostly business owners, doctors, and lawyers. Last year my life AP was 1.25 million. So far this year I am at 1.2 million. Definately on pace to surpass last year.

MIBizInsurance · 09-27-2007, 01:53 PM

"The best thing is for you to decide what you need to make and then work out the details of how much you need to sell."

Sound advice. You need a biz plan/goal to strive for.

Survivor · 09-27-2007, 05:12 PM

Wow Wbunch. Sounds like you've made it big...

I've worked my pay in reverse and I know what I need to generate every week as far as AP goes. I need to hit 1200 AP/week to earn what I'd like to earn. Problem is, I don't really have a feel for what I'll need to sell to hit that. I realize its a $100 policy/week, but what will I need, 2, maybe 3 a week?

I'll be hitting up about everyone, but I imagine that most folks I deal with will be regular middle-class folks.

James · 09-28-2007, 01:49 AM

I need to hit 1200 AP/week to earn what I'd like to earn.

Let me see if I have this straight, basically you looking at around $5,000 monthly AP, correct? Now this should not be all that difficult at all if you have any get up and go.

I'll be hitting up about everyone, but I imagine that most folks I deal with will be regular middle-class folks.

Now you hit up anyone you want, but let see if we can expand on this just a tad. You're representing a fairly large and well known company, I think you could hit businesses easily. Small business owners while if succesfull would be upper middle class but most have middleclass mindset, for the most part. Plus they tend to be a bit older, I would say 45 to 50 would be a running average that you will expierence.

45 year old, 1 million in coverage and Plus Standard for ten years, $1270.00 Annuall Premium. For a 20 year term same person, $2,040 AP. Now it would seem to me, that if you sell one a week, if you did on the average of $500 grand policies it would be about half, meaning you would need 2 a week, about. Now I'm not going to bring up WL or UL's even though I should but knowing the common misunderstandings about these products let us just keep them off the table, even though selling them would make this a lot easier! Esp. since I do believe you are fairly new at this? So let us keep it simple, as you progress I'm sure you'll get a better feel for such things and your salary will only increase as you become more familiar, I'm sure AG will see do that.

So the basic question is how many contacts do you need to hit to get one appointment and how many appointments will it take to get one Life Sale? I would think if you went to 30 businesses a day, with a company brochure and letter of introduction and concentrate on the appointment not the sale, you should be able to get 1 to 2 appointment on average. Now if you could hit 40-50 aday you should be able to land 2 appointments fairly consistently. So let us say on average you can get one sale out of 10 appointments on the first go around, esp. if you can have a mentor or manager go with you during the first two or so weeks.

At this level of activity, 40-50 business walks a day brings in 2 appintments a day on average, 10 aweek. If you want to sell only term I would shoot for the 20 year term meaning that one sale a week should get you where you want to be. A 500 grand, 20 year policy by AG for Standard Plus is right at $1,115 AP, meaning you should be right where you want to be. Of course I'm thinking 500 grand is extremely low amount and one you'll likely be able to increase on average.

Survivor · 09-28-2007, 02:18 PM

Good post James! Very informative.
These guys claim to be closing MUCH more than one in ten. I was invited to the office's quarterly meeting (as my paperwork hasn't yet cleared for me to start). I tried to ask everyone I could about how business was and how they liked everything. All of them expressed how the presentation package allowed for an easy close. I have a feeling I'll close more like 3 in 10 appts.
One of the things that encouraged me about this company was how old everyone was. I'm 21, there is a 24 year old, two 27 year olds, and everyone else (about 15 more people) is 40+. One guy even got a plaque for 35 years with the company. This shows me that its much more of an A-team operation than that clown show I just left.

James · 09-28-2007, 02:24 PM

Originally Posted by Survivor

Good post James! Very informative.
These guys claim to be closing MUCH more than one in ten. I was invited to the office's quarterly meeting (as my paperwork hasn't yet cleared for me to start). I tried to ask everyone I could about how business was and how they liked everything. All of them expressed how the presentation package allowed for an easy close. I have a feeling I'll close more like 3 in 10 appts.
One of the things that encouraged me about this company was how old everyone was. I'm 21, there is a 24 year old, two 27 year olds, and everyone else (about 15 more people) is 40+. One guy even got a plaque for 35 years with the company. This shows me that its much more of an A-team operation than that clown show I just left.

I'm using conservative numbers, of course if you can better the percentages all the better! It is a good business, one you can achieve at easily, if you can do the activity required. Good luck too you and expecting you do to well!

Go get'em Tiger!

RTD19701 · 10-01-2007, 11:01 AM

Survivor,

If u don't mind me asking, which clown show did u just leave?

Survivor · 10-01-2007, 01:30 PM

Ua