Joke or not, just what could a B-rated company bring to the party that a hundred A to A++ companies can't do just as good? Perception is reality. I can't think of a good line to tell a client that would not get shredded by the next agent who talks to them as to why I put them in a B company.
120% Comp on Whole Life?? Is This Possible?
- Thread starter bsteele
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- whole life
- 2,094
So, you collect a hundred dollar monthly premium on the life app, you turn around and get $120 back from the insurance company, they are now in the hole just on yourself and your money, not to mention all the underwriting costs and so on... and you wonder why they are B rated? I think I'm going to open a butcher shop tomorrow and give a salesman $120 each sale to go around to restaurants and sell hundred dollar sides of beef. That sounds like a good plan. He could go door to door selling that as well - in fine neighborhoods.
- 19,053
You really don't understand the difference between selling insurance and a cut of meat?
Whether the agent gets 120% or 130% the insurance is still out 140% to 150% on all new issued life applications. Always have been.
They pay it to the FMO/IMO. The difference for the agent is that, in the cases he is getting over 100% instead of 65%, the FMO/IMO gets less of the pie.
Every life insurance company I've ever had this discussion with say that they do not start making on life policies until they have been on the books about 2 years.
I have been offered up to 130% as a writing agent. In thoses cases the offer came from an IMO/FMO. They were going to make money on it too. So, they were getting 140% at least.
I am contracted with about 30 life companies right now. I only have one contract under 100%.
- 2,094
Yes, JD, I've been in the business 25+ years and had this same conversation with many a underwriter and manager. I do indeed understand the difference. I was just using it as an example-of how indeed this business is different. Just a little food for thought. Pun intended.
- 11,280
From the way your post read you are saying that Oxford is B rated because they pay 120 FYC so it seems that you don't understand.
- 1,953
I know they can't be used for sales purposes but when looking at a FE with a low face are state guarantees a consideration.
- 19,053
Even in your example, if the guy that bought the steak kept paying you every month fo it for 3, 4, 5 years, how much would make off that one steak?
- 2,094
Yes guys, my post read that way, and I'm stupid, and you guys are all brilliant, and I'm an ***. Yes, I admit it, carry on. Yes, if a guy paid me every month, blah blah, then the company made, blah blah. Then I made, blah blah blah. Give me a break. Yes, I don't understand ratings and making money and investing. I'm an ***.
- 11,280
It's ok, at least you admit it. 
- 2,094
I'll admit to being a total *** on soccer. I know nothing about soccer, nor do I care. And, some of this new music out, not an expert on any of that. I admit it.
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