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Policy
Delivery Receipts Can Improve Your Persistency
Due to the unique nature of a life insurance
policy, where a policy holder may cancel anytime a premium is due, it is
important that your client clearly understand the important specifics
and provisions of the policy they have purchased from you. If your
client is in anyway confused or uncertain about what they have
purchased, they may decide that they should look somewhere else for
their insurance coverage or allow another agent into their home for that
purpose. Not only will this action cause you to lose renewal
commissions, it may affect any persistency bonuses you might be eligible
for, as well as result in the loss of a client/asset that you could have
done more business with in the future.
It is not unusual to mail a policy to a client. In
those circumstances, it is EXTREMELY IMPORTANT that you make sure your
client will see the important specifics of their policy every time they
look at it. If you have the client sign a copy of the receipt and
return it, you will have proof that they have received their policy and
on what date.
One easy way to avoid this is to provide a clear
and simple explanation of your client’s new policy when you deliver it
to them. In that most people cannot and do not remember most of what
you tell them; it is normally in both of your interests that you leave
some type of explanatory document attached to the FRONT of the policy.
It should clearly explain WHO is covered, HOW MUCH coverage they have,
HOW LONG it will last, will the rates go up, is there a cash value, HOW
MUCH does it cost, HOW OFTEN must they pay it, and, on WHAT DATE is the
payment due.
A copy of a policy delivery receipt and other forms
that you may find useful are available from our web site
www.LifeLeads.net. You may use them as a template to develop
something personalized of your own. It is STRONGLY suggested that you
keep one completed and signed copy for yourself, and staple, or
otherwise attach a copy to the front of the policy you are leaving in
the home. If you have not had the delivery receipt personalized, you
should also consider attaching your business card to the delivery
receipt.
About The Author
Mr. Osman is the pen name of a nationally
recognized award winning life insurance Master General Agent and
consultant and has been developing life insurance leads and teaching
closing techniques for almost twenty five years. Contact him at
LifeLeads.net (605-362-2576) or at
eric@lifeleads.net.
Copyright Eric Osman © 7/10/06
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