Questions on Being an Independent Agent with Transamerica (Life)

[Mutherrunner]

Hi all,

I recently applied to my local (SC) Transamerica, went through a pleasant phone interview, took the required POP test (test that matches potential candidate's compatibility with sale success skills) and results came back that I was a poor match. One of the sections claimed I was not a "people person" which the manager (who I immediately felt comfortable with) and I had a good laugh at because this is DEFINITELY not the case.

Had a fantastic in person interview with the manager today and he said that the only way I can work for Transamerica as a captive (which I decided was the best route for me) is if I work for them as an independent agent and if I can generate 5-6K in one month, we can then go to his senior and appeal this test in hopes of my becoming captive.

My attraction to their advertisement was "x" amount of paid training, extensive in house and field training, book of leads and benefits. However, since I did not pass said test, I was offered a "temporary" independent position, unpaid, no benefits, no leads, (I basically have to solicit friends and family... it's fine, they're used to it and I have no fear of new people) No marketing, regular indi stuff.

As a licensed newby, my questions are these and additional insight is greatly appreciated!

1. What does "make 5-6K first month" mean? Product sales? Commissions? Lottery winnings? How does this work? How do I get paid? (was told 50% advanced once policies are placed and remainder is payed "as earned" checks are biweekly)

2. Is it possible the advertisement was intentionally misleading to get people to sign on as independents to save the company costs? Hoping this isnt the case because (again) the manager was pretty cool. (My skepticism stems from spinning my wheels for the past few months by an upline that I should have further investigated... Hey, free lesson and note to other newbies)

3. First year product sales commissions are outstanding (80-105) but the renewals average 1.5% on all products (for independent) Is this the norm?

My goal is to find a reputable company that provides success proven training (life or other) that I can grow with. Don't want to get burned again and I'm SO ready to work! I place this query in your capable hands, thanks for reading my novel and appreciate your advice!

 

[DHK]

Ah, you failed the LIMRA test! (It has many names and versions.)

Here's the deal: If you don't score high enough on that assessment, the office doesn't get the funding to "finance" you, if the office chooses to take you on at all. This once happened to me at Mutual of Omaha about a year before I joined them as a career agent and that was how it was explained to me.

So, I wouldn't think this is their way of "twisting" you or saving money by recruiting. They have to make the case to the home office to get the funding to fund the advertisements promises.

 

[Norwayguy]

Simple question if you can generate 5k in annual premium in a month independent without any of those things why would want to then become captive?

 

[DHK]

BTW, I recall the story that Mehdi Fakharazadeh also failed the initial interviews and assessments with MetLife... and he became the #1 insurance agent in the entire United States with a 50+ year career (and he has a serious accent that makes it difficult to understand him)... but he outworked a lot of people.

Don't let it stop you. The office is trying to show you how to reapply sooner and get your career going.

 

[Mutherrunner]

LOL! Well thank God I'm not alone! Went to see him anyway and glad I did Thanks so much for the feedback and Happy Thanksgiving!

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Great question!

Personally, It's not just about the money (absolutely nothing wrong with those who are out for the numbers!) I'm new to this industry and I actually enjoy being part of a group. Especially one with a good name that will provide excellent training.

Down the road, I may change my mind. But for now, I'd like to be able to feel confident in my knowledge and technique in order to help consumers. I also like challenges

Thank you for asking and Happy Holidays!

 

[walthamny]

Personally, the people who design the LIMRA life insurance must also work part time conducting presidential election polls. Their predictions for success are usually horrible. I failed this test many times 14 years ago. I counted so many quit this job despite scoring high marks and bragging to me about it over the years. And the more I do this job, I can see that it will only fit a small percentage of people. You tried FE/medical supplements and now you are trying a different approach. I think you are on the right path. Good luck

 

[1963]

Good move! The training and product knowledge to be gained will be more valuable than anything. Congrats on getting the opportunity to make yourself more prepared in the future; Happy Holidays!!!

 

[Mutherrunner]

Update:
I'm crazy about this place! My boss (who is also the area director) is fantastic and has allowed me to sit in on many training sessions and helped me learn the software and products even though I'm not yet captive. (because of the Pop/ LIMRA test...meh) I'm learning, inspired and going to do my best! I think being part of a team is really going to work for me being a newbie. PLUS, our team consists of a group of well seasoned insurance professionals that have been either with the company or the industry for at least 15 years and willing to give advice (much like you all); I'm not getting trained by some new "hot shot".

The company is incredible (for captives) Great bonus structure (as long as you keep your goals consistent) and benefits. They also have ongoing training and make you sit down and figure out what you have to make in order to achieve your life goals and how to get there. (yes, I should have done that on my own...) Lastly, I really like their product options and prices! For one new to Life Insurance, it's quite an extensive study but I'm definitely going to jump through whatever hoops they ask of me. If I can make the required goal, AWESOME. If not, hey, I got some great training and met a bunch of cool people.

Sorry if this is a jumbled thought, have to get to a Christmas play~ Happy Holidays, all and thank you SO much for your constant encouragement!

 

[Mutherrunner]

Simple question if you can generate 5k in annual premium in a month independent without any of those things why would want to then become captive?

Hey Norway and anyone else with feedback,

I keep coming back to this question and have developed my personal list of pros and cons. As stated earlier, I'm new to the industry so the training is a big plus as are health benefits and not having to deal with taking out my own taxes and SS (Which I know very little about), plus a book of business to work with is a huge plus as opposed to buying my own leads and soliciting more of my own friends and family.

However, the training is also on my cons list. The first 14 weeks, I'm under a validation period where I'm required to be at the office (about 40 minutes away) daily and put in 10 hour days both at the desk and training in the field with a supervisor. Ill be making a salary plus commission during this time but am also required to make a pretty lofty goal. After validation period, I must continue with a goal of 6K per month and to be honest, this intimidates me. So does being at the mercy of a corporation and lack of flexibility that I would have if I chose to work as an independent with them.

Yesterday, I sat down with my boss and he explained the excellent bonus structure and higher residual rates per year (Captive VS independent) and briefly touched on the health benefits which are rather important to me. I left even more confused than before and didn't have anything on paper that breaks everything down so I could present it to my spouse.

I'm terribly confused at this point so any feedback is greatly appreciated. Especially finding out options for an independent agent for health insurance and how to handle taxes. I really don't want to screw up any possibilities with selling for them.

 

[Mutherrunner]

Update: Two years being career agent with TAN now independent!

Yep, I agree with all (in the beginning) who suggested independent is the way to go! So here I am trying the independent angle, now. (Again, a newbie)

When I began as a brand new agent/career agent with them it was incredibly stressful and much less lucrative than I was told (as we all have been) but the learning experience (good, bad and ugly) was exactly what I needed and I'm grateful.

Personally, I learned my strengths (people/ referral gains/ ) and weaknesses (time management/ juggling clients that that cancel or lapse, outstanding requirement runs while attempting to maintain weekly placed goals concentrated on a well picked over book of business/ keeping my mouth shut when I spotted BS ) I still love adore my team and met some pretty cool people.

I'm choosing to stay with TAN products because I know our products, software and enjoy the diversity of what they have. Any of you (well organized) independents have marketing strategies or lead ideas that can help? I've done some chamber meetings and am the kind of person that will stop you on the street to ask what kind of family financial stability you have planned after you pass (strength!) but it does get mentally exhausting. Leary about buying leads but not opposed.

As always, thanks for the feedback,here she goes again!