Fair warning: this post involves a lot of numbers. But don’t turn away! They are numbers that hold a lot of value that you can use for building your Life portfolio. And, it might get you thinking about the idea of using a Life Specialist.
A guest speaker at a meeting I hosted said, “It’s fairly simple to get $100,000 in issued Life Insurance premiums by utilizing a Life Specialist at your Agency.”
He opened with the idea that if you’re a New York Life or Mutual of Omaha or Prudential rep who focuses on Life Insurance, the magic number of policies written is 200. Which is to say, once you write 200 policies, or have 200 active policies in your portfolio, you don’t need to prospect outside of that anymore. You certainly could, but you don’t need to.
I wanted to determine if this would be possible at my Agency.
My team has always been good at multi-lining, everything we talk about in the sales process and our onboarding process, and our review process is focused on the multi-line.
We’ve also been good at writing 100+ Life policies a year.
I realized I wasn’t thinking big enough; this magic number of writing 200 Life policies unlocked my thinking.
I decided we would set a goal. Not to write 200 Life policies, but to achieve $100,000 in life insurance premiums.
So how will we achieve it?
Through reverse-engineering the numbers to produce $100,000+ in Life premium.
Here is how the numbers break down for my Agency. Follow along and compute the math for your Agency.
Current active Life policies: 644
That divides out by 12 months to equal 52 active life policies per month.
That’s 52 policies that my Life Specialist will begin calling on for reviews each month.
Let’s say that she can schedule appointments with half of them – that’s 26.
Of these 26 scheduled appointments, about two-thirds show up (this is realistic in our market). That’s 17 people who show up for a Life review.
In those meetings, we uncover conversions or new opportunities within the household for additional policies. We close slightly less than half, and we write 8 new policies.
We just wrote 8 new life policies from our current 52 for the month!
Next, we work on beneficiary reviews.
Going back to the 17 insureds who show up for their Life Insurance appointment, we now also have 17 beneficiary review appointments we can schedule. We explain we take care of the Life Insurance policy for the person who listed them as beneficiary on their policy. We want to help that person with their Life Insurance needs, too.
We’ll speculate that we have success scheduling one-third of those. That’s six appointments made, and we’ll assume that half will show up for the appointment. Then, using a more conservative closing ratio, we anticipate writing one new Life policy for this group.
Now, we’ve had 17 appointments with current life customers, and we’ve had six appointments with their beneficiaries.
That’s 23 appointments.
Next, we tackle referrals.
During all of our appointments, we ask for one referral: the name of a friend or family member whom we can call on to help the same way we help them.
We get 12 referrals from our previous appointments.
Of those, we’re able to schedule appointments with six of those people.
And of those six, three of them show up.
And again, if we get in front of three people and have a needs-based Life conversation, we’re going to close one of them. That’s one more Life policy on the books.
That’s our path to writing 10 Life insurance policies per month. All from in-book, beneficiary reviews, and referrals.
But we don’t stop there.
We’ve just generated 84 new active follow-ups: the folks that didn’t schedule an appointment didn’t show up for their appointment or didn’t buy the policy.
Plus, there are even more prospect lists we can explore:
- Policy cancellations list: the life policies that have been canceled over the years, either by choice or for no-pay. Keep in mind that at one point having that Life Insurance policy was important for them to have. We check in to see what’s changed and if it might be the right time for them to take up a policy again.
- Personal prospects
- Prospects from our networking efforts
- Our regular annual reviews with existing customers
When we accumulate all of these approaches to soliciting Life Insurance, we’re in the neighborhood of 120 life policies. If they average $84 a month, that equates to $120,000 in Life Insurance premium.
Maybe crunching numbers like this is exciting to you. Or maybe it’s confusing. Perhaps you’re thinking you can get much higher than $100,000, or maybe for your Agency $100,000 is crazy talk. Of course, it’s important to remember that this number is different for every Agency. There is also carry over to consider from year to year.
The goal of presenting the numbers in this way is to show you how to break them down and the simplicity of the system.
Lastly, you may be curious about having a Life Specialist at your Agency.
If you have one, that’s great. If not, first look inside. My Life Specialist is my top producer. This year, we’ve taken her out of the service loop and Life is her main role. (And yes, this is filling a 40-hour week consistently.)
Our mindset has shifted. We are a Life and Health Agency, that just so happens to offer Home and Auto.
Take action: Look at your numbers and see what’s possible at your Agency. Reverse engineer the numbers like shown here and go after your $100,000 in Life Insurance premiums in small chunks.