What Carriers Advance on Controlled Business?

[Orlando1]

I'm planning to write some life business on myself and family that will be classified as 'controlled business'. I know a lot of carriers will only pay 'as earned' commissions on this.

What carriers will give a good advance 6 - 9 months for life business? Non med term is the product.

Any other insight is appreciated!

 

[djs]

Hopefully the answer is none.
But in the event there is someone who will do this, I'm in as well. I need some extra Christmas money.

Dan

P.S. You need to understand the risk this puts the carriers at. While I'm joking about the extra Christmas money, many agents would do exactly this and then let the policies lapse in February. Easy way to finance Christmas Its not a good way to do business.

 

[Orlando1]

No intent to lapse anything. I see it as a smart way to protect my family and jump start 2013 with fresh marketing capital.

 

[GreenSky]

I recall someone who claimed to be a successful health insurance agent who suggested this technique for new agents. Let them buy a SI term policy, get advanced and use that money for marketing.

It was a stupid idea then and I think if an agent is so tapped they need to do it now, it's still stupid.

Rick

 

[jacobtn]

I know of only one carrier that does this, and I was shocked to find out that they did (one of my agents did it for the same reason). No I don't want to reveal it as it is stupid that they advance 9 mts on controlled biz. It's what hurts good agents.

 

[GoCubsGo]

Not sure but I think ING does. Call and ask them.

 

[Josh]

I believe Assurity will.

 

[Mattschmidt]

Pay annually, and if your at a 110-120% contract, you come out a little ahead

 

[digfesales105]

I agree with the early on responders. If you need "capitol" as you call it...get a loan from a bank like most business owners do. Business owners don't take loans out of their own new company to buy inventory for that very same company?

I think a lot of new agents fail to realize that you are in the business of "John Smith Insurance Agency"? This is your business. This is your company. If you don't have $500-$1000 to invest in yourself, you started in this business prematurely then. I'm sorry you're getting some negative response's but this is never a good or smart option. Anyway you phrase it or pose it...the carrier and your upline will be the one's losing in the end.

I purposely got lic'd with a carrier that was going to be great policy's for my family and 2 1/2 years later it's still on the books of course. I got paid as earned. I signed up with them purposely for my family and myself and have yet to sell it again. Mainly because the app was THIRTY TWO PAGES LONG! LOL

When I started over 10 years ago...I borrowed money for gas and leads. When that well dried up...I pawned my brother's microwave. He didn't know. He finally talked to me again after 3 months! LOL Needed gas money so I could sell policy's and make money.