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How to Become an Insurance Broker
- Thread starter AgentHac
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In PA the term broker is interchangeable with agent. To avoid confusion the DOI has changed the designations to "producer."
Yes, the term "broker" referring to independently contracted agents always sounds misleading to people that know better.
A lot of the carriers refer to "agents" as brokers, and it's seems like a misnomer. I tried referring to myself that way on the phone for a while, but then felt guilty and switched back to agent.
It's like if you can't grow a mustache, painting one on is not the same thing. If an agent wants to be a "broker" then he needs to get the necessary licensing and do it, if not be content to be a dip **** agent, like me.
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It is a ton of work, and too see the dollars just roll in hasn't really started for me and my partner yet. Just got everything together, took months of planning, lot of cash and working close with the DOI and Secretary of State.
Is it worth it in the end? Hell yea it is I couldn't be happier. In honesty its a lot easier to become a GA and just have some people writing under you.
Is it worth it in the end? Hell yea it is I couldn't be happier. In honesty its a lot easier to become a GA and just have some people writing under you.
How you become a GA?
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It's not all that hard to become appointed as a GA with insurance companies, one way is to stay for a long time and eventually, if your writing a lot of business they may bumb you up to a GA as a kind of thank you, but that's doubtful.
The true way to become a GA is to contract agents underneath you, meaning your their manager so to speak. Just start a LLC or Corp get an EIN and change all your insurance appointments to GA status, but before they'll do that you'll have to have at least one or two people ready to work underneath you.
The overrides you get aren't all that great. 0.25% or at most 1% is all that I have seen. So look at it this way, unless you have people below you that are experienced sales people or just a hell of a lot of newbies then it's not worth it unless your all doing huge deals once a month.
Example: An 6.5million dollar Survivor Universal Life, at age 70 1/2, nearest age 71, finianced with yearly or monthly payments, depending on the company, health, smoker etc, is about 180K a year or 15K monthly. At a 9month-12month CS at 80-115% that's not a a bad over ride at 0.25%-1%. Little extra pocket cash.
There's lot's of ways to do that and it's not hard to find the business for it either.
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