Brand New Agent Needs Help

[google]

Hi I am a brand new agent. My plan is to go part-time (I am also a Real Estate and Loan agent). My primary customers will be in the high tech industry. This group people are very intelligent and will be most interested 2 products:
1. term life;
2. whole life with high dividend (where money can be borrowed out for investment). I don't know the right term of this kind of insurance.

Experts here, please share some input about how I start finding agencies to interview or evaluate. I believe my main criteria are listed:

• Offer a wide range of products in the 2 categories above. Ideally focus on only life insurance.
• Independent / Non captive
• Commission only, no benefit needed.
• I have control on my own pace and volume, no managers.
• My clients are mine. I serve my clients with the best products. NO multi layered scheme.
• Generous commission split. (This is less important as I know I can always change company for better commission split.)
• No junk fees
  
• My perspective clients and I are in California SF Bay Area. However, I don't assume location or a local office is needed in the digital age.

Any inputs are welcome. If mentioning good agency name is not allowed or inconvenient for you, please pm me. Thanks a lot.

 

[fed up]

Starting out believing that you can grasp the concepts while working part time is going to limit what you can successfully sell and to whom you can sell it. This is not a part time gig.

 

[Life Hawk]

You are not going to do part time sales to type A persons.

You really need to rethink what you plan on dong.

But I could be wrong.

...and then again.

 

[DHK]

@google

You will want to check out The Breakaway League. We actually have had people join our group and work part-time and do substantial business... without becoming an expert on life insurance. Our average case size is about $57,000 of annual premium. We have over $1.5 Billion of our client's wealth "off the radar screen of the IRS" for income tax purposes. We have 6 CPAs and a corporate counsel attorney that are doing this with us.

Next Thursday, we have a complimentary webinar event with our founder, Thomas Love about the strategies and language we use. Go ahead and register so you can learn more about what we do and how we do it.

https://www.thebreakawayleague.com/bl-strategies

 

[scagnt83]

Being effective in that market, on your own as a new agent, is not going to happen.

Being effective in that market, on your own as a new agent who is part time, is not going to happen.

Effective means not just making sales, but also providing a correctly designed plan and product.

It is the equivalent of a brand new real estate agent saying they want to focus on commercial income producing properties for savvy real estate investors... but do it part time. And cash value life insurance is an even more complicated niche than that.

It is possible to do, but not on your own. You will need some type of partner or mentor to accomplish this successfully.

 

[DHK]

My primary customers will be in the high tech industry. This group people are very intelligent and will be most interested 2 products:
1. term life;
2. whole life with high dividend (where money can be borrowed out for investment). I don't know the right term of this kind of insurance.

They will be... but only if YOU are well versed and can show how the client will benefit. They won't ask you about them. You have to have a structured conversation about their problems... and if they want to solve them.

Join the webinar for next Thursday and you'll get an advanced introduction into what we do and how we do it. And yes, we do joint work with six case design specialists and mentors all around the country.

 

[scagnt83]

Hi I am a brand new agent. My plan is to go part-time (I am also a Real Estate and Loan agent). My primary customers will be in the high tech industry. This group people are very intelligent and will be most interested 2 products:
1. term life;
2. whole life with high dividend (where money can be borrowed out for investment). I don't know the right term of this kind of insurance.

There are multiple terms out there for it. "Cash Value Life Insurance" is a common term, or some variation of that.

You will likely want to include IUL (Indexed Universal Life) in your product list. Many in that demographic are searching for it specifically instead, or in addition to WL.

Also do not discount GUL (Guaranteed Universal Life Insurance), as it is becoming more common for long term protection. (its basically a permanent term policy with little to no cash value)

Also do not discount DI (Disability Insurance) in that demographic. High income earners need specialized solutions, above and beyond what most work based policies cover. (yes even really plush benefit plans at the top tech companies)

Im not telling you to lead with both life and di. But be aware and open to DI and even mention it after you obtain people as life clients.

Experts here, please share some input about how I start finding agencies to interview or evaluate. I believe my main criteria are listed:

• Independent / Non captive
• Commission only, no benefit needed.
• I have control on my own pace and volume, no managers.
• My clients are mine. I serve my clients with the best products. NO multi layered scheme.
• Generous commission split. (This is less important as I know I can always change company for better commission split.)
• No junk fees
  
• My perspective clients and I are in California SF Bay Area. However, I don't assume location or a local office is needed in the digital age.

Any inputs are welcome. If mentioning good agency name is not allowed or inconvenient for you, please pm me. Thanks a lot.

Imo, the best path to follow is to be on your own as an independent agent. That could be as your own "agency" (using the term loosely) as a LLC. ie. "Joe Smith Insurance LLC"

Operate under your own name and indicate Independent Contractor status: "Joe Smith Insurance Agent"

Or avoid the LLC setup and file as a DBA and be "Joe Smith Insurance Agent, DBA: Joe Smith Insurance"


You will be an independent agent (1099 contractor), free to appoint (do business with) with any insurance carrier that accepts independent agents. About 99% of life carriers have indy agent contracts.


"Appoint" just means you contract with them to sell their products. Some allow "direct" appointment, meaning you can contact them directly and sign up with no other entities/individuals involved.

But many life carriers require going through a middle man type of firm to contract with them. This is called an "upline" in general terms, but there are many different specific terms: General Agency (GA), Insurance Marketing Organization (IMO), Field Marketing Organization (FMO), are the most common three types/terms you see. Not a whole lot of difference for general purposes of this conversation. Lots of threads on the forum about the differences and reasons for the terms.

But they are all a conduit to contract with insurance carriers. And they often provide some type of case/business support. That could be case design, finding the right product, providing quote comparisons, help with underwriting requirements, general backroom support, etc. It varies. So does the level of service/expertise in those areas. There are very few uplines I would completely trust for case design on advanced cases. Rely on your own expertise, or that of a trusted mentor.


It will be your business, free to run how you want, when you want. The IMO will essentially be working for you, not the other way around. You will be a business owner, not an employee.


Commissions do vary a bit between carrier and carrier. But comp can vary between IMOs as well even for the same carrier. Top comp is not something to worry about in your first year. Basic level "street" comp, is what you want from an IMO to start. That is what the carrier considers the starting level for the agent to put it in simple terms. Some IMOs do offer above street, but only if you can provide production history over certain amounts. And it varies on what they can do at what amounts, etc.


The only fees you should have to pay is for your E&O insurance. IMOs might offer lead or marketing programs and things like that for a fee, but the real IMOs do not require that or anything similar. E&O insurance to start costs around $50/m.


Most IMOs do business with agents all over the country. My main IMO is in NV. But over the years Ive done biz with ones out of CA, NC, LA, etc. I have clients from coast to coast as well. Email is the most common form of communication with most IMOs. And ime, most clients in the tech sector prefer email for the bulk of communication on cases. Especially for the detailed level of explanation needed for CV life insurance planning.

Offer a wide range of products in the 2 categories above. Ideally focus on only life insurance.

There are plenty of IMOs/GAs that focus on life insurance, or mainly life. All of them will offer most term carriers. All of them will offer most IUL carriers (other than Penn Mutual).

Very few will offer WL contracts with CV focused carriers such as Mass, Guardian, Penn, ON, etc. Most WL carriers are set up to contract direct with the carrier. Some IMOs will have them, but you almost always are getting a lower comp than if you went to the carrier directly.

This means you will need some direct contracts for WL and convertible term, and a relationship with a key IMO/GA or two for the other stuff.

 

[google]

Thanks for the input. I really appreciated if we can have some suggestions on the topic/questions I asked. I understand everyone is speaking from the angle of helping me to understand how competitive this business is, and I thank everyone for that.

When I started as a part time Realtor 2 years ago, a lot of naysayers said even 50% of full time people quit in the first 2 years. There's no way that a part timer can earn money in the Realtor industry. Fast forward this year, my net commission will be about 150k as a part timer... Not a lot but well above average among full timers.

Please share some inputs about how I start finding agencies to interview or evaluate. Thanks

 

[google]

Imo, the best path to follow is to be on your own as an independent agent. That could be as your own "agency" (using the term loosely) as a LLC. ie. "Joe Smith Insurance LLC"

Operate under your own name and indicate Independent Contractor status: "Joe Smith Insurance Agent"

Or avoid the LLC setup and file as a DBA and be "Joe Smith Insurance Agent, DBA: Joe Smith Insurance"


You will be an independent agent (1099 contractor), free to appoint (do business with) with any insurance carrier that accepts independent agents. About 99% of life carriers have indy agent contracts.


"Appoint" just means you contract with them to sell their products. Some allow "direct" appointment, meaning you can contact them directly and sign up with no other entities/individuals involved.

But many life carriers require going through a middle man type of firm to contract with them. This is called an "upline" in general terms, but there are many different specific terms: General Agency (GA), Insurance Marketing Organization (IMO), Field Marketing Organization (FMO), are the most common three types/terms you see. Not a whole lot of difference for general purposes of this conversation. Lots of threads on the forum about the differences and reasons for the terms.

But they are all a conduit to contract with insurance carriers. And they often provide some type of case/business support. That could be case design, finding the right product, providing quote comparisons, help with underwriting requirements, general backroom support, etc. It varies. So does the level of service/expertise in those areas. There are very few uplines I would completely trust for case design on advanced cases. Rely on your own expertise, or that of a trusted mentor.


It will be your business, free to run how you want, when you want. The IMO will essentially be working for you, not the other way around. You will be a business owner, not an employee.


Commissions do vary a bit between carrier and carrier. But comp can vary between IMOs as well even for the same carrier. Top comp is not something to worry about in your first year. Basic level "street" comp, is what you want from an IMO to start. That is what the carrier considers the starting level for the agent to put it in simple terms. Some IMOs do offer above street, but only if you can provide production history over certain amounts. And it varies on what they can do at what amounts, etc.


The only fees you should have to pay is for your E&O insurance. IMOs might offer lead or marketing programs and things like that for a fee, but the real IMOs do not require that or anything similar. E&O insurance to start costs around $50/m.


Most IMOs do business with agents all over the country. My main IMO is in NV. But over the years Ive done biz with ones out of CA, NC, LA, etc. I have clients from coast to coast as well. Email is the most common form of communication with most IMOs. And ime, most clients in the tech sector prefer email for the bulk of communication on cases. Especially for the detailed level of explanation needed for CV life insurance planning.


There are plenty of IMOs/GAs that focus on life insurance, or mainly life. All of them will offer most term carriers. All of them will offer most IUL carriers (other than Penn Mutual).

Very few will offer WL contracts with CV focused carriers such as Mass, Guardian, Penn, ON, etc. Most WL carriers are set up to contract direct with the carrier. Some IMOs will have them, but you almost always are getting a lower comp than if you went to the carrier directly.

This means you will need some direct contracts for WL and convertible term, and a relationship with a key IMO/GA or two for the other stuff.

Wow, that's a lot of great information here. Thanks you very much for taking the time and educate me. Will read this 20 times and grasp the ideas you shared. Really appreciate it!

 

[scagnt83]

@google

You will want to check out The Breakaway League. We actually have had people join our group and work part-time and do substantial business... without becoming an expert on life insurance. Our average case size is about $57,000 of annual premium. We have over $1.5 Billion of our client's wealth "off the radar screen of the IRS" for income tax purposes. We have 6 CPAs and a corporate counsel attorney that are doing this with us.

Next Thursday, we have a complimentary webinar event with our founder, Thomas Love about the strategies and language we use. Go ahead and register so you can learn more about what we do and how we do it.

https://www.thebreakawayleague.com/bl-strategies

Dude. They think a lot of that membership! I guess you have found value in it though to keep paying it.