Life Insurance

When does a 10% increase equal a 20% commission…

Presented by Jim Linn When it comes to placed business ratio: Let use this as an example: Agent submits 10 applications at a monthly premium of $100. 10 x $100 x 12 months= $12,000 Annual Premium For illustration purposes, assume a commission rate of 80% Placement ratio of 50% = $4,800 commission Placement ratio of 60% = $5,760 commission 20% more commission for placing 10% more business. How do you increase your placement ratio?
  1. Complete a needs assessment with your clients to determine the amount or clarify the amount of life insurance they said they want. (How did you arrive at that amount of insurance?)
  2. Utilize a fact-finder to get a better overview of your client’s situation and don’t forget to ask the health questions. All of them. NOTE: Just asking if they smoke is not enough. Ask them if they use or have used ANY tobacco products (the patch, Nicorette gum, e-cigs, chewing tobacco, etc.) Marijuana usage?
Depending on the type of tobacco product and/or marijuana usage they may still qualify for non-tobacco rates depending on the carrier.
  1. What is their budget? Without knowing what they can set aside each month you are guessing if it is affordable. Mr. /Mrs. Client based on your current budget what amount would you like to contribute to your life insurance program? If they give you the “depends on how much it is” look them in the eye and tell them it will be $1,000 a month. Then explain that you have some clients whose budget is $50-$200 per month and others that are $500+. You are just trying to put together the best options for them based on their budget. Mr. /Mrs. Client would you say your monthly budget is somewhere between $50-$200 or something else? Keep redirecting to get a closer range that you know is acceptable to them.
  2. Put together 3 options for them to review. Low, Medium and High. If you only present ONE option it is easier for them to say NO. By having THREE the plan they elect becomes their own decision. 80% of the time they will choose the middle option.
By taking a few extra steps with your clients, you will not only close more business and place more business, but increase your commission as well.
Bulletins

Transamerica – TransWeekly and Important Information

Transamerica has issued the following bulletins: * Transamerica Solutions Portfolio TransWeekly Newsletter for January 13, 2016
PRODUCT DEVELOPMENT & MANAGEMENT Accelerated DB Rider Now Available on Immediate and 10 Pay Solutions in CA The Accelerated Death Benefit Rider is now available on the Final Expense Immediate and 10 Pay Solutions in the state of California. The Accelerated Death Benefit can be used to help pay medical expenses as a result of a medical condition from an injury or illness as determined by a physician. For more information, contact the Transamerica Sales Desk.
FORMS Third-party Designation Form Required in CT Effective Jan. 22, 2016, all Connecticut product applications will include language that gives the applicant the option to designate a third party to receive notice of cancellation due to non-payment of premium. Some product applications already contain this language, but for those that don’t, form SAD 0113 will need to be included. SAD 0113 will replace SAD 1008 and will be available on TransACT starting Jan. 22. By Feb. 22, SAD 0113 must be made available to Connecticut applicants when applying for these products.