Renewals and Replacements – What You Need to Know

To replace or not replace, that is the question. And if you do, do you keep it within the same family of company brands if theirs appears to be now the least expensive? These questions are highlighted at this time of year, AEP, when most agents do a very significant percentage of their yearly applications from October through January, as the media frenzy is all about Medicare and shopping plans. It is important to understand some key facts about your renewal landscape. Those include: You are paid a commission based on the first premium you ever wrote with a client. No increases for you based on their rate increases. If you replace an existing company with another company in that family brand, you will NOT reset your 6 year clock (most states.) If you replace an existing company's product currently with another agent, and you write it within the same family of companies they were in when you found them, you will be paid ZERO. Please watch the video explanation: The best scenario is the always move the person outside of the same family of companies when you can. Remember, NEVER replace someone's policy, ever, if it is not in the client's best interest to do so. Doing so is illegal and not ethical at all. Never move someone out of a mere eye toward your commissions.

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