Question (newer agent here)

[HoosierLife]

K this comment really hit home with me. No I haven’t done my research on final expense, i used to watch Dave duford when I did warm market life insurance sales and realized I would probably be better off cold knocking prospects instead. That’s when a connection of someone I know was introduced to me. And now I’m going for it. But once I build up my confidence and skill set and see I can do this to live on, I can just opt out right?

Yeah they starting me out on a 75% contract. Don’t really know if that’s good. I forget how big the renewals are. I think like 10% or something, I’ll ask again. Btw, don’t companies usually stop giving renewals after like 10 years or something? Or decrease them over time?

Also I’m just a bebe, I’m only 26 years old

There’s a few problems. One, Lincoln keeps you in debt to them. That’s part of the reason they don’t charge you for leads up front. It’s why you’re not vested day 1.

You know what the higher ups at LH call your paythrough? Their “retirement.”

When agents try to leave, they’re usually broker than when they started. In debt for leads and chargebacks. Which Lincoln will Vector you for both.

Oh you don’t know about Vector do you? That’s like the debt reporting agency for insurance companies. So when you try to contract with another carrier, we’re gonna pull your vector report and MANY carriers will not bring you on at all if you have a vector.

Oh you paid back your chargeback and lead debt. Then they vector you for your advanced premiums. Dirty pool.

What if you replace your own super expensive modified policies with Level day 1 coverage with an independent carrier? Almost like a double chargeback now. Along with some cease and desist letters.

They’ll watch your appointment statuses like a hawk. We literally have to submit all the contracting at the same time for incoming LH agents, because they watch the state department of insurance websites daily. As soon as they see a new appointment request, the aforementioned vectors occur.

It’s like socialism. You can vote it in, but you’ll have to shoot your way out of it.

 

[Valetic]

There’s a few problems. One, Lincoln keeps you in debt to them. That’s part of the reason they don’t charge you for leads up front. It’s why you’re not vested day 1.

You know what the higher ups at LH call your paythrough? Their “retirement.”

When agents try to leave, they’re usually broker than when they started. In debt for leads and chargebacks. Which Lincoln will Vector you for both.

Oh you don’t know about Vector do you? That’s like the debt reporting agency for insurance companies. So when you try to contract with another carrier, we’re gonna pull your vector report and MANY carriers will not bring you on at all if you have a vector.

Oh you paid back your chargeback and lead debt. Then they vector you for your advanced premiums. Dirty pool.

What if you replace your own super expensive modified policies with Level day 1 coverage with an independent carrier? Almost like a double chargeback now. Along with some cease and desist letters.

They’ll watch your appointment statuses like a hawk. We literally have to submit all the contracting at the same time for incoming LH agents, because they watch the state department of insurance websites daily. As soon as they see a new appointment request, the aforementioned vectors occur.

It’s like socialism. You can vote it in, but you’ll have to shoot your way out of it.

How do they vector your advances? Isn’t that money owed to the agent?

 

[HoosierLife]

How do they vector your advances? Isn’t that money owed to the agent?

No advances are debts you have based on advanced commissions you’ve received based on future client premiums.

Each month as your clients make their premiums, the advance debt is reduced. But as long as you keep writing your advance debt balance will continue to grow.

 

[Valetic]

No advances are debts you have based on advanced commissions you’ve received based on future client premiums.

Each month as your clients make their premiums, the advance debt is reduced. But as long as you keep writing your advance debt balance will continue to grow.

But it’s paid off as long as the client is persistent right?

 

[Valetic]

That Koolaid comment was so far from being racist, that I literally had no earthly idea what he was talking about.

I see this stuff all the time, though. Like this example - who’s really the racist here? The guy who brings up Koolaid, or the guy who calls it racist because - you know - “those people” drink Koolaid?

Now I understand why it irked him. I didn’t understand that he was calling me racist. So, I guess it’s my turn to be a little “irked”.

Haha! Sorry I’m not in on the joke. When you posted it I was just like, “Huh?”

 

[shonceman]

But it’s paid off as long as the client is persistent right?

Yes, but if you quit, or are terminated, LH demands the repayment immediately. Doesn’t matter if you’ve got 100% persistency. They consider the advances a loan. If you’re not with them anymore, they call the loan. It’s in your contract. Probably a separate page with “Advance Commissions” in the title.

Haha! Sorry I’m not in on the joke. When you posted it I was just like, “Huh?”

I just went back and deleted the post before I saw that you had quoted me. I thought I was being too combative. So, I’m sorry about that. But I’m glad you’ve got a good sense of humor!

 

[jerryrut]

But it’s paid off as long as the client is persistent right?[/

It depends on how your contracted is worded and I know nothing about theirs; you need to have an uninterested person review it before you jump in, IMO; folks on here have tried to give you good advice that you asked for but it’s obvious that your mind was already made up, so just jump in and learn a hard but valuable lesson, you have time to overcome whatever happens. Good luck.

 

[Travis Price]

K this comment really hit home with me. No I haven’t done my research on final expense, i used to watch Dave duford when I did warm market life insurance sales and realized I would probably be better off cold knocking prospects instead. That’s when a connection of someone I know was introduced to me. And now I’m going for it. But once I build up my confidence and skill set and see I can do this to live on, I can just opt out right?

Yeah they starting me out on a 75% contract. Don’t really know if that’s good. I forget how big the renewals are. I think like 10% or something, I’ll ask again. Btw, don’t companies usually stop giving renewals after like 10 years or something? Or decrease them over time?

Also I’m just a bebe, I’m only 26 years old

I’m 37. So now things are clicking. You lose all of your policies after you leave LH and you can’t market to those people for two years.

I have David’s book. He’s the guy you should work with for FE, imo. He’s genuine, honest and doesn’t come off as a dick. FE is an add-on product for me, so I don’t need to carry his book. If you PM me your details I’ll happily mail it to you, no charge.

 

[LostDollar]

No advances are debts you have based on advanced commissions you’ve received based on future client premiums.

Each month as your clients make their premiums, the advance debt is reduced. But as long as you keep writing your advance debt balance will continue to grow.

But it’s paid off as long as the client is persistent right?

OP--Might be time for you to talk with your tax/accounting friend and have her help you with some basic budgeting -- cash flow planning.

In my judgement your attitude towards owing a large company a lot of money is both cavalier and naive.

To inform your thoughts about your cash needs, you should make inquiry of FE agents here as to how long it took them (and how hard it was) to make a change from receiving commissions as advances to receiving commissions as earned. This is another interesting topic that gets discussed/argued in detail sometimes. I can't point you to a specific thread anymore but there is a basic issue there which is going to be very important to you and it sounds to me like you should understand it better.
.

 

[Travis Price]

OP--Might be time for you to talk with your tax/accounting friend and have her help you with some basic budgeting -- cash flow planning.

In my judgement your attitude towards owing a large company a lot of money is both cavalier and naive.

To inform your thoughts about your cash needs, you should make inquiry of FE agents here as to how long it took them (and how hard it was) to make a change from receiving commissions as advances to receiving commissions as earned. This is another interesting topic that gets discussed/argued in detail sometimes. I can't point you to a specific thread anymore but there is a basic issue there which is going to be very important to you and it sounds to me like you should understand it better.
.

I agree. It’s hard to go As-earned when you start under full advanced, but it is the best option imo. You’re much more stable financially, and hard to get vectored when you don’t owe anyone loans.