TransAmerica or Northwestern Mutual?

[bp019j]

Northwestern Mutual is quite arguably the most solid company in the industry. They have been ranked every year as one of Fortune Magazine's World's Most Admired-consistently leading their industry in terms of Quality of Products and Services; They have the highest financial strength ratings by all four major rating companies (every year they have ever run their surveys) and they are a mutual company that has been around for over 150 years.

Even measuring in just dividends alone they broke an industry record this past year-paying their policy owners a little over 5 billion in dividends-they're next nearest competitor (Not TransAmerica) payed 1.7... that's a pretty huge gap.

Honestly I've explored the industry for myself and I was unable to find people as passionate about and as solid as Northwestern Mutual, plus they pour about $100,000 into training you in your first two years, most other companies just throw you out there.

The other nice thing (sorry last thing--haha clearly, I have an opinion on this ) is that Northwestern Mutual is one of the few companies left that is an exclusive distribution system-meaning that only Northwestern Mutual Reps have access to Northwestern Mutual's products, however you're still an independent contractor and can sell other companies products too. You set yourself apart from your competition in the industry though by having access to both NMFN's products and any other companies, where as if you were contracted with TransAmerica you couldn't ever sell Northwestern Mutual's products.

I hope this helps!

I tend to agree with all that you have said. Question regarding selling other companies products? Is it true that Northwestern must get 1st look before shopping the market? And it must be documented as to why the agent was 'selling away'? Being able to sell Northwestern Mutual products is definitely an added advantage to competitors, especially if the agent recognizes it and does offer other companies products.

 

[xrac]

I tend to agree with all that you have said. Question regarding selling other companies products? Is it true that Northwestern must get 1st look before shopping the market? And it must be documented as to why the agent was 'selling away'? Being able to sell Northwestern Mutual products is definitely an added advantage to competitors, especially if the agent recognizes it and does offer other companies products.

Does NWML has their own inside brokerage that agents are to use for selling away? If so what is the compensation grid like for that?

 

[bp019j]

Does NWML has their own inside brokerage that agents are to use for selling away? If so what is the compensation grid like for that?

I do not think NWML has their own inside brokerage. Agents would probably contract with an outside IMO to offer competitor products . Can anyone else comment or clarify?

I just don't know how realistic it is for an agent to have this type of set-up (Exclusive NWML, but the option to sell competitors products). And would be interested in learning from any agents that are successful, without much push back from their general agent.

 

[CFP83]

I tend to agree with all that you have said. Question regarding selling other companies products? Is it true that Northwestern must get 1st look before shopping the market? And it must be documented as to why the agent was 'selling away'? Being able to sell Northwestern Mutual products is definitely an added advantage to competitors, especially if the agent recognizes it and does offer other companies products.

This is most definately true....read the agents contract. As a northwestern mutual agent you are a "statutory employee" (dont discount the employee part). Your employment contract with the company requires you to give NML first shot on all cases....only after doing this can you look to other companies.

bp019 I know your newer here, but as some others on the forum who already know my NML background, I spent my first six years out of college at NML and was fortunate to win many awards and was a speaker at two different Northwestern conferences. I have nothing but great things to say regarding Northwestern Mutual's training.

Northwestern does not own a brokerage channel. They have an exclusive relationship with a IMO where NML will send the client file directly to the IMO and in return NML makes roughly 30 points on the case and the rest goes to the agent.

 

[xrac]

This is most definately true....read the agents contract. As a northwestern mutual agent you are a "statutory employee" (dont discount the employee part). Your employment contract with the company requires you to give NML first shot on all cases....only after doing this can you look to other companies.

bp019 I know your newer here, but as some others on the forum who already know my NML background, I spent my first six years out of college at NML and was fortunate to win many awards and was a speaker at two different Northwestern conferences. I have nothing but great things to say regarding Northwestern Mutual's training.

Northwestern does not own a brokerage channel. They have an exclusive relationship with a IMO where NML will send the client file directly to the IMO and in return NML makes roughly 30 points on the case and the rest goes to the agent.

Why did you leave NWML since you were obviously successful? Bad koolaide?

 

[CFP83]

Why did you leave NWML since you were obviously successful? Bad koolaide?

lol....bad koolaide....I like that one.

I have always wanted to do far more than just life insurance planning....even though I value life insurance as the center of a sound financial-plan. In Northwestern's culture "fee based financial planning" is something that take a series 7 (which I have no interest in ever attaining) and many other licenses and various hoop's one must jump through. Northwestern's "current" company structure for a financial representative, although great for getting a fast start in the business, long-term isn't the most condusive to building and maintaining a comprehensive-planning practice.

Some advisors, myself included, get to a point where their client base is a diverse cross-section of society with varying planning needs.....NML manufactured products are not always the right solution.

Further reasons were that NML is strictly against advisors branding their practice and creating DBA's. Although I had a great experience while at NML, my long-term vision was to create a financial-planning firm where I could represent "the client" and their best interest not a particular company and a companies product line-up.

Ultimately the final straw was as my client base became increasingly focused within the "baby-boomer" market I realized that not having access to a truly diversified portfolio of life products (UL, IUL) would limit my ability to place the exact right product in every situation. This, combined with all the above made my move clear.

It was most definately a hard decision to leave the "comfort zone" with a large renewal base to forge out on my own.....but it was right for my clients and for my vision of what I wanted to become.

 

[bp019j]

Well said. That is sort of my hold out....not much flexibility...dba, opportunity to blog, UL products, etc. Some of it can be done right, in the best interest of the client...However feel there could be too many hurdles in the way to offer one solid life insurance carrier's products.