The Posibilities As a Life Agent Starting New

[5starfinancialhealth]

Hey guys, I see nothing positive happening with individual health anytime in the future so soon I plan on making the transition to life insurance.

I have sold tons and tons of term life over the phone but never face to face. In fact I have never sold an insurance policy face to face.

I just had a few questions regarding this.

1. Is 100k your first year a possibility given decent leads and enough hours?

2. I'm looking at mutual of omaha and new york life as options, how do you feel about these companies?

3. What things are important to know that someone going into this should know but probably doesn't?

4. How do life insurance leads work?

5. Retention. How can I assure my policies stay on the books?

6. Commissions. From what I think I understand , Commission is generally advanced × 12 months and around 100%-110%. Is this correct?

 

[DHK]

I just had a few questions regarding this.

1. Is 100k your first year a possibility given decent leads and enough hours?

Anything is possible... however, it's usually a function of how good the agent is as well as these other areas. Capital to survive the first few months is critical. Remember that it takes time before you get paid on the ISSUED policies.

2. I'm looking at mutual of omaha and new york life as options, how do you feel about these companies?

Good companies, but your question is the wrong one to ask. Based on your market, which company has the better suite of products for those whom I plan to be selling to?

Also, you should be comparing the agency and the management/training... not just the company. In that respect, the company is meaningless and irrelevant.

You may want to check on this, but I *think* NYL pays upon SUBMISSION, not on issuance. This means that you can get money in your pocket faster, but if the client doesn't take it, or is declined for coverage, you'll be on the hook for the commission that was advanced to you.

3. What things are important to know that someone going into this should know but probably doesn't?

Where are you going to find your INITIAL prospects? How are you going to turn those prospects into referral advocates for you? These are the questions I would be asking - because if you have no one to see, a 120% contract won't pay you anything.

See my response to #2 & #5.

4. How do life insurance leads work?

Better ask someone else who may have more experience with this than I do.

5. Retention. How can I assure my policies stay on the books?

Learn how to do a good fact-find, recommend an appropriate amount of coverage for the given premium.

Remember this: You aren't selling the death benefit. EVERYONE wants the death benefit. But no one wants to pay for it. In that respect... you are selling the PREMIUM. Then show them what the premium will do for them over time.

6. Commissions. From what I think I understand , Commission is generally advanced × 12 months and around 100%-110%. Is this correct?

Not in a career / captive agency such as NYL or MoO.

Typically they will advance 9 months of your commissions. Your typical base contract will pay a 55% commission. Depending on the contract, you may get additional bonuses on top of this base commission for your first couple of years.

A $2,400/year base/target premium ($200/month) @ 55% = $1,320. 9 months advance (or 75%) = $990 in your pocket... not including any additional bonuses.

 

[c4yrslf12]

To clarify the commissions as a NYL agent:

55% on WL, 50% on term, and lower for their "proprietary" products. You get advanced 50% of your deserved commission once the Part I is done, you get the second half of your commission when it goes "paid."

$100 monthly premium gets you around 300 up front, 300 when paid.

 

[xrac]

Is $100k possible first year? I refer you to this thread: http://www.insurance-forums.net/for...re-selling-insurance-t52688-9.html#post697008

Out of 65 poll participants only 2 report making more than $75k first year.