Which final expense insurance companies you contract with can be the difference in you making money selling or not.
There are multiple types of IMOs to contract through.
There are tons of vendors that offer just leads or you can affiliate with IMOs that offer contracting with leads also.
Finding the best of these is an important decision.
There are what's called independent marketing organizations.
Agents are recruited and offered leads at a reduced or subsidized costs. Generally these services offer leads at about half of what the going market price is.
The idea is a simple one and in many cases both the final expense insurance companies and agents benefit.
These agencies are typically well funded and have the budget necessary to front the cost of lead generation.
Agencies are not all equal in the quality and quantity of leads they can produce.
Some want to make money selling insurance, some want to make money selling leads and some want to make money doing both.
There are also vendors who only generate leads. They sell those to agents across the country.
Knowing the answers to these 5 key questions will help reveal those to include in your arsenal.
The senior insurance market is highly competitive.
The average senior between 60 and 75 years of age is going to get tons of mailers every month.
Most prospects buying coverage for the first time are going to respond to more than one mailer.
The first agent making a presentation may very well close the prospect, but the prospect will almost certainly talk to more than one.
If your policies have monthly premiums significantly higher than another coming after you, you are going to loose a good portion of your sales.
Sooner or later, those seniors who have an existing policy are going to allow someone to come in and make a presentation, if for no other reason, than to see if they can save some money on their monthly premiums.
A significant percentage of sales are replacement policies. In almost all cases, the reason for replacement is to get the same coverage for lower monthly premiums.
Having your contracts will insurance companies with very competitive premiums will let you beat the competition when the prospect buys for the first time.
And having highly competitive premiums will prevent many agents coming in after you from replacing your hard earned business.
Look for final expense insurance companies that have very simple and straight forward applications.
There is really no good reason an application needs to be more than 3 or 4 pages.
One or two pages for basic client information and
the health questions and one or two pages for the premium payment
information, replacement information and agent questionnaire, if any.
The first premium payment must be allowed to be made by drafting a bank account or a credit or debit card. This will allow for the applications to be faxed or emailed into the insurance companies.
Submitting the application to the company will be available via fax, email or U.S. Post Office.
you've spent hard earned money buying or generating leads and you do not need your submitted applications that fall within the guidelines of the questions on the applications getting declined once submitted.
The questions that are asked on the applications should be what the underwriting is based on.
If there are not any "yes" health questions, then you expect the policy to be issued. This, of course, excludes any false responses from the prospect.
Reasonable underwriting would make room for medical information bureaus to be used and prescriptions to be checked, but assuming that those come back with no contrary indications to the answers on the health questions, the agent expects the policy to be issued.
Agents will write more business with a final expense insurance company that has simple underwriting.
Some final expense insurance companies will have a listing of what they call prohibitive medications.
These are medications, that if taken, by the prospect will cause a decline. Even within those companies, some will issue the policy if a prohibited medication is being prescribed for a diagnosis other than what the medication is generally prescribed for. What medicines are included between insurance companies.
Most underwriting will require a telephone interview with the applicant.
It would be best if this phone interview was conducted while the agent was in the home, but there should also be a provision to allow the insurance company to call the client after the agent leaves the home.
Many agents dislike the telephone interview process, but it really protects the agent against any problems on future death claims.
Particularly those problems centered around "did the agent actually ask the health questions and record the real responses"?
How long does it take to have a clean application issued?
The best will issue policies within one or two days of receiving the ap and completing the telephone interview if one is required.
The first year commission is only part of the total commissions the agent will receive over time. Many agents will focus solely on the first year commission level.
Good producers will have persistency rates over 75% and that means that the commission percentage over a 5 year or more period needs to be considered when evaluating commission levels between insurance companies.
There will be many cases where the higher first year commissions are high, but the renewal commissions are much lower than other carriers.
Some like to deliver their own policies, some do not.
They should have the option on each application to have the companies deliver the policy or have the policy sent to the agent.
If they choose to have to policies sent
to themselves, they should make sure that the policies are hand
delivered as soon as possible. It is best to find companies that allow either method.
Nothing will cause you to have a newly written policy replaced or cancelled more than a non-delivered policy.
Here's a list of final expense insurance companies to consider, Royal Neighbors RNA, Forester's, Monumental, American Continental, Americo, American Memorial, Vantis, American Amicable, Colorado Life, Assurity.
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