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Reinstatement Bonus Program. TMK1536 092910. Agent training only. Not for sales use. Agenda. The purpose of this training is to show how to make money and increase activity through the reinstatement bonus. What’s in it for you? When does a reinstatement qualify for bonus?

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slide1

Reinstatement Bonus Program

TMK1536 092910

Agent training only. Not for sales use.

slide2

Agenda

The purpose of this training is to show how to make money and increase activity through the reinstatement bonus.

What’s in it for you?

When does a reinstatement qualify for bonus?

Who are we calling and what do we say?

How do I reinstate a policy?

Approach at the home

slide3

Reinstatement Bonus Program

What’s in it for you?

TMK1536 092910

Agent training only. Not for sales use.

slide4

What’s in it for you?

  • Agents: Reinstatement bonus $$$$$$$
  • Agents/Managers: Increased Commissions $$$$$$$
  • Everyone: Increased Renewals $$$$$$$
  • Everyone: Increased Agent activity $$$$$$$
  • Everyone: Culture of Quality $$$$$$$
slide5

How is the bonus paid?

  • Life: Bonus equal to 25% of the annual premium
  • Accident and Health: Bonus equal to 15% of the annual premium
  • No Bonus paid on Med Supp, Dental, Vision, ADP
slide6

How is the bonus paid?

  • Reinstatements processed in the home office by the first Friday of the month will be paid by the 15th
  • Agency Owner will receive a physical check mailed to the Agency for purpose of recognizing the agent
  • Agent must be active at the time of bonus payment
slide7

How are commissions & renewals paid?

  • Policies reinstated in the first policy year:
    • Reinstating agent receives any remaining first-year commission, paid to commission account (same for managers)
    • Reinstating agent receives renewals as earned beginning the 13th premium payment
  • Policies reinstated in second or subsequent year:
    • Reinstating agent receives renewals as earned starting with next premium payment
  • No negative impact to DCN if reinstated policy lapses again
slide8

Increased Activity

  • What is the No. 1 challenge new Agents face?
  • Reinstatements perfect for:
    • New Agents new to area or limited Project 100
    • Supplementary activity for Agents struggling with referral collection/setting appointments
  • What’s a perfect lead look like?
    • Customer knows Liberty National
    • Has a need for insurance
    • Can qualify for coverage
    • Could afford it at one point
slide9

Increased Activity

  • Lapsed policyholder appointment setting fits in perfectly with Monday/Thursday call sessions
  • Happy customers who have had their policies reinstated are a great source of:
    • Referrals
    • Additional sales (when it makes sense)
  • Good things happen when Agents are talking to people!
slide10

Culture of Quality

  • The Reinstatement Bonus is the catalyst to kick off a quality movement in the Agency
  • The biggest benefit to Agencies and their wealth building through renewals is when everyone begins watching their business and less business lapses
  • How to do I catch it before it lapses? Train on calling delinquent customers on the Premium Notice/Combined Billing Report (FA215). Found on Field Reports on Agent Services
slide11

Premium Notice/Combined Billing (FA215)

  • Published on Saturdays (ready for Monday call clinic)
  • Most policies lapse on 18-20th of the month
  • Agents use first 15-30 minutes of each call clinic to call delinquent customers on their agency
slide12

Reinstatement Bonus Program

II. When does a reinstatement

qualify for bonus?

TMK1536 092910

Agent training only. Not for sales use.

slide13

When does a reinstatement qualify for bonus?

  • Policy must have lapsed (49 days past due)
  • Reinstating agent must be different than the original writing agent
  • Must collect all back premiums and current month
  • Must be reinstated on bank draft
  • Check for back premiums must be from same bank account as ongoing bank draft
  • Bonus only paid once on a policy
slide14

Example of all back premiums + current

  • Today is May 10th. A lapsed policy with premium of $30 per month with a March 1st (3/1) Date Paid to (DPT)
  • Agent must collect $90:
    • $30 for March
    • $30 for April
    • $30 for May
    • Draft June’s premium from their checking account
    • End of the month reinstatements, get next month’s premium.
slide15

How is Reinstatement Bonus paid?

  • Agency mails weekly:
    • Reinstatement Bonus Transmittal
    • Reinstatement Request Forms with checks for back premiums for each reinstatement
    • Authorization for Preauthorized Payments
    • Life reinstatement applications (when applicable)
    • Policies in force when reinstatement has been approved and money is applied
    • Quality Control Manager should be handling this!
slide17

Reinstatement Bonus Program

III. Who are we calling and

what do we say?

TMK1536 092910

Agent training only. Not for sales use.

slide18

Who are we calling?

  • Lapse list emailed as spreadsheet by Home Office 22nd of each month from AUTOMAIL@libnat.com
  • Includes last 3 months of lapses
  • List is pure lapses. No cash value, Extended Insurance, Reduced Paid Up
slide19

The List

  • Quality Control Manager should be in charge of distributing and tracking lapsed policies
  • Leads are sorted by ZIP code and grouped by Payor
  • Leads should be printed and distributed one page at a time
  • Reward agents who bring in the most:
    • Preset appointments
    • Child safe leads
    • Referrals
slide20

The List

  • All Reinstatements are turned in to the Quality Control Manager so she can submit to Home Office and provide Agency Owner info on who is doing the best job working them (play the hot hand)
  • Lapses don’t go bad, people’s situations change. That’s why we are distributing three months
  • Yes, the Home Office conservation department is calling customers, too
slide21

How do I read the list?

  • Left to right
  • Payor: Ask for this person when calling
  • Insured: Good to know the Insured in case they purchased on spouse or dependents
    • Last Paid: If there is a letter in this column, that means the last payment was through payroll deduction. Good to know if the customer doesn’t remember purchasing. “Mr. Jones, it looks like you purchased this through your employer.”
slide22

How do I read the list?

  • Plan Code: This tells what type of coverage was purchased. Only need to tell them Life, Cancer, Accident, etc. Don’t get into policy benefits on phone. Print Plan Code Cheat Sheet from Agent Services
slide23

How do I read the list?

  • Issue Date: When the policy was purchased. “Mrs. Jones, you’ve been paying on the policy since 2005. I sure would hate for it not to be there when you need it.”
  • DPT: Date Paid To. This is the last month the customer paid a premium. Used to calculate how many premiums the Agent will need to collect
slide24

How do I read the list?

  • Address: Used to verify when appointment set
  • Some will have no phone number or bad phone numbers. We have an address, go see them. PO Boxes use www.zabasearch.com
  • Premium: Annual premium of the policy. If the premium is $10, it is a $3,000 Accidental Death Policy
slide25

Getting Policy Info

  • Because the lapsed policy is not typically in the Agent’s agency, the Agent will need the Quality Manager to pull the customer’s info from the Field Inquiry screen prior to going on the appointment
slide26

Getting Policy Info

  • The info from the Info Screen should show the agent any other coverage the customer has in force
  • This does two things:
    • Make sure the Agent isn’t surprised in the home
    • The coverage can be accounted for in the needs analysis
slide27

What do we say?

This is a customer service call, not a sales call!

slide28

What do we say?

  • Emphasize the three areas bolded and underlined
  • Your = We already do business together
  • Urgent = It is urgent because they are not currently covered
  • No longer in benefit = If something were to happen, their policy would not pay
slide29

What do we say?

No matter the response, set the appointment.

slide30

Reinstatement Bonus Program

IV. How do I reinstate a policy?

TMK1536 092910

Agent training only. Not for sales use.

slide31

What’s in our packet?

  • Reinstatement Request Form (All reinstatements)
  • Authorization for Preauthorized Payments (All reinstatements)
  • Life Reinstatement Application (if needed)
slide35

When does applicant have to complete reinstatement application?

  • Life policies with face amount of $50,000 and below require a reinstatement application if the DPT is more than 120 days. Spouse rider + base policy.
  • Life policies with face amount of $50,001 or more require a reinstatement application if the DPT is more than 60 days
  • Health reinstatements must be less than 90 days past due
  • (Cash Cancer policies cannot be reinstated)
  • Yes answers on reinstatement applications reviewed by underwriting
slide36

Where are the Reinstatement Applications?

Download correct Reinstatement Application for their

state from www.libertynational.com Agent Services.

slide37

Reinstatement Bonus Program

V. Approach at the home

TMK1536 092910

Agent training only. Not for sales use.

slide38

Approach at the home

  • Always do what we said we would do first…
  • Reinstate the Policy
  • Review coverage and answer questions
  • Ask for the check for the correct amount
  • Make sure Authorization for Preauthorized Payments is same account on the check
  • Fill out Reinstatement Request and both sign
  • Fill out Reinstatement Application (if applicable)
slide39

Transition to Laptop Presentation

  • Only attempt to place additional business with the customer if the reason for lapse was not money
  • Agent: “When was your last free Needs Analysis?”
  • Customer: “We haven’t seen an Agent in a while.”
  • Agent: “Let’s take care of that while I’m here.”
slide40

Transition to Laptop Presentation

  • Treat as Existing Policyholder lead (Agent knows what existing coverage customer has)
  • Get referrals on all reinstatements
  • Agent should have built rapport using F.O.R.
slide41

Commission Disallowance

  • A common mistake is to use reinstatements for the sole purpose of writing new business for new commission
  • Make sure Agents are aware of the Commission Disallowance Rule
slide42

Mailing Reinstatements

TMK1536 092910

Agent training only. Not for sales use.

slide43

Mailing Reinstatement Letters

  • Use approved Reinstatement Letter
  • Can edit your contact information
slide44

Mailing Reinstatement Letters

  • Set up Business Reply Mail account through post office for reply envelopes. Only pay for postage you use
slide45

Setting up Business Reply Account

  • Sign up for USPS Business Reply Account
  • https://reg.usps.com/register?app=abrm&appURL=https://abrm-prod.usps.com/ABRM/secure/welcome.do
  • Register for Business Reply Mail Permit
  • http://pe.usps.com/mpdesign/mpdfr_brm_perm.asp
slide46

Setting up Business Reply Account

  • Choose account type. Recommend you start with a Business Reply Mail account. This allows up to 910 returned mail pieces a year for a $200 annual fee
slide47

Mailing Reinstatement Letters

  • Handwrite customer’s name and address on outside of outbound envelope. Call three days after mailing
  • Reinstatement Letters only for customers outside of your area. Additional activity
  • Perfect for Quality Control Manager (can receive bonus if licensed)
  • Bonus/commissions/renewals paid the same on policies reinstated through the mail
slide48

Agenda

The purpose of this training is to show how to make money and increase activity through the reinstatement bonus.

What’s in it for you?

When does a reinstatement qualify for bonus?

Who are we calling and what do we say?

How do I reinstate a policy?

Approach at the home

slide49

What’s in it for you?

  • Agents: Reinstatement bonus $$$$$$$
  • Agents/Managers: Increased Commissions $$$$$$$
  • Everyone: Increased Renewals $$$$$$$
  • Everyone: Increased Agent activity $$$$$$$
  • Everyone: Culture of Quality $$$$$$$