6 Months Advancing

[Mark]

I keep reading about more and more Insurance Companies or Imo cutting their advancing from 9 month down to 6 months.

I read where companies like Colorado Bankers are now only 6 months.


Would you leave your current company or IMO if they cut your advancing from 9 months down to 6 months?


I know some agents dont even get advancing. But I'm talking about if you had 9 month advancing with someone and they cut you down to 6 months, would you find another company or is it not a big deal?

 

[magagent]

98% of my business is now payroll or allotment deduction,so this is a dead issue for me. None of my individual market carriers have hinted at dropping an advance from 9 to 6 months.

I doubt this is an issue for experienced brokers. What other companies are going from 9 to 6 months?

I keep reading about more and more Insurance Companies or Imo cutting their advancing from 9 month down to 6 months.

I read where companies like Colorado Bankers are now only 6 months.


Would you leave your current company or IMO if they cut your advancing from 9 months down to 6 months?


I know some agents dont even get advancing. But I'm talking about if you had 9 month advancing with someone and they cut you down to 6 months, would you find another company or is it not a big deal?

 

[rousemark]

98% of my business is now payroll or allotment deduction,so this is a dead issue for me. None of my individual market carriers have hinted at dropping an advance from 9 to 6 months.

I doubt this is an issue for experienced brokers. What other companies are going from 9 to 6 months?

Personally, if I were on advance, I would prefer to be on 6 months.

 

[YouGotMyMoney]

depends, if another IMO or carrier would go back to a 9 month advance, it might not be worth it to change for just a 3 months advance difference, now if they switched to a 3 month advance it would prob be a diff story altogether. And this would only apply to life, if ur on advances with health u cant really leave anyway realistically.

 

[Mark]

One example is some IMOs with Assurity are only offering 6 months advancing while others are offering 9.


I'm hearing about other companies thinking about reducing it down to 6 months company wide. Debit balances are killing IMO and Insurance Companies and this would help reduce it.

I dont want to lose any agent by reducing advancing. But I keep hearing about other IMO and Companies doing this.

I get as earn on a few of my companies that I write with. But I can see where someone on a 9 month advance would get mad if they were cut back to 6 months like Colorado Bankers did.

 

[YouGotMyMoney]

But who's moving, agents that dont produce or produce very little, or agents who put in a solid amount of apps?

 

[Mark]

But who's moving, agents that dont produce or produce very little, or agents who put in a solid amount of apps?

Not just agent moving, but if the agent is not with the insurance company. They find 2 or 3 imos and the one that offers 6 months vs 9 months most of the time wont get the contracts.

 

[YouGotMyMoney]

you can still offer a 9 month advance, just pay the additional 3 months out of ur pocket

 

[Mark]

you can still offer a 9 month advance, just pay the additional 3 months out of ur pocket

Some of the imos are not co signing for 9 month advancing when they can and are only offering 6 months.


Another thought it is better for the long haul agent to take less advancing, because less risk of having a debit balance.

 

[YouGotMyMoney]

Some of the imos are not co signing for 9 month advancing when they can and are only offering 6 months.


Another thought it is better for the long haul agent to take less advancing, because less risk of having a debit balance.

doesnt make sense to me unless you got crazy interest charges for advances.

Why would it be better? IF an agent is a producer, and is paying for marketing expenses, he needs cash flow, like every business in the world, takes loans even if they are cash flush to grow their business.