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[goillini52]

Doesn't mean they were bad people when they were "hired" . . .

If they weren't bad when you hired them.....what do you reckon it was that caused them to go bad AFTER you hired them?

 

[Newby]

Im not sure if some of the contributors of this thread are using this topic as a ploy to protect from debt to roll up to them, or if they are pushing this "as earned" philosophy since their main carrier doesnt give advances, but it is poor business practice to not infuse as much cash into your business as possible, all the time, regardless of what your bank account looks like.

We are splitting hairs arguing whos money it is, and just because someone cannot budget money correctly shouldnt force them to go as earned, it should force them to take some business classes, or get mentored by someone who is successful.

Without a doubt, if you make a sale, an agent should receive 100% of their full commission on a nine month advance.

If anyone tells you otherwise, they either think you can't budget, their carrier doesnt offer it, or they are afraid of debt to roll up to them.

Take YOUR money. Dont allow a carrier to hold it. Business 101 if you ask me.

Who willful pays more to the IRS, only to get a return at the of the year? Poor people.

Why take on that same poor thinking mindset in your own business?

The mindset of an agent should be how do I run a profitable business, not how do I become a successful salesperson.

Lol This falls under the "Just because you're paranoid doesn't mean they aren't really out to get you" category.

There really is a whole section of the country where there are a lot of us like me. We just like stuff paid off. No debts. No obligations.

You can look on my website and read my same basic philosophy on advances. And I wrote that 6- years ago. It's just the way I have always thought.

Leveraging everything is good for some people. If they are trying to quickly grow a huge business most need the leverage. It's perfect for some people.

But being free of debts has allowed me to make career changes several times in my life that always worked out great. And I likely couldn't have made those changes had I not always been so financially conservative. Being conservative gives you a stability that creates a lot of opportunities. And that has served me well.

There is no problem with agents staying on full advances even long after they don't need to. I definitely understand the logic in that. And most do. People can have a great handle on their finances and do it either way. It's just their personal choice.

The ones who would benefit the most from moving more in the conservative direction never do. They are the ones who are overly concerned about whether companies pay in 2-days or after the 1st draft. They can be in business for 5-years and still living off their weekly cash flow. Those are the ones that just don't have a handle on their finances.

 

[shonceman]

Lol This falls under the "Just because you're paranoid doesn't mean they aren't really out to get you" category.

There really is a whole section of the country where there are a lot of us like me. We just like stuff paid off. No debts. No obligations.

You can look on my website and read my same basic philosophy on advances. And I wrote that 6- years ago. It's just the way I have always thought.

Leveraging everything is good for some people. If they are trying to quickly grow a huge business most need the leverage. It's perfect for some people.

But being free of debts has allowed me to make career changes several times in my life that always worked out great. And I likely couldn't have made those changes had I not always been so financially conservative. Being conservative gives you a stability that creates a lot of opportunities. And that has served me well.

There is no problem with agents staying on full advances even long after they don't need to. I definitely understand the logic in that. And most do. People can have a great handle on their finances and do it either way. It's just their personal choice.

The ones who would benefit the most from moving more in the conservative direction never do. They are the ones who are overly concerned about whether companies pay in 2-days or after the 1st draft. They can be in business for 5-years and still living off their weekly cash flow. Those are the ones that just don't have a handle on their finances.

I'm like you, Scott. I just don't like being in debt. I've been mainly as earned for a few years now. I feel more free and a lot less stressed. No criticism at all for people who take advances. As earned just suits me better.

 

[Todd King]

No sir, I don't have it wrong.

Secrets of the rich: Use other people's money (OPM)

Warren Buffett

"That guy in Omaha. "He's building equity with other people's money!"

"float" refers to money held for policyholders to cover their claims.

The purpose of an insurance company, from a customer's perspective, is to offer protection from financial loss. For this coverage, drivers pay premiums. But if it ended there, most insurance companies wouldn't make a profit -- policyholder claims generally exceed premiums paid.



So to really understand insurance companies, you have to look at them from the board of directors' perspective. It's then that you see the purpose of an insurance company isn't to provide coverage, it's to borrow money and invest it -- a lot of money.

After all, if you have 10 million policy holders paying $100 a month for car insurance, then that's $1 billion piling up every 30 days. That money is the "float." Most, if not all, will eventually be paid out. The key word there is "eventually." In the meantime, the insurance company is free to continue to collect premiums and invest the float for its own benefit.

The question, of course, is precisely where is all that money invested? When investing such a large sum, professionals spread it around and seek to profit from all sorts of investments.

So knowing what stocks the big insurance houses are buying doesn't go far enough for me. A lot of what insurance companies are buying are large, stable companies that provide a relatively predictable rate of return.

What I'm looking for is the portion of each stock portfolio allocated to smaller companies with greater potential for exceptional returns. Insurance companies hire top managers to tend to their trillions.

Okay then, write a life policy on a client, get a 9 month advance, when it lapses after 4 months, explain to the company why they shouldn't be coming back asking for YOUR money. After all, you seem to think it is YOURS.

I never said you couldn't take out loans and use it wisely, but you guys are talking as if it is actually earned money when it is not. That's all I said. It is not YOURS until it is earned. Until then it is a loan. Plain and simple.

 

[MedicareMillionair]

I have found that many final expense and other forms of insurance offer "advanced commissions". Has anyone ever built up a renewal from these sales or does the "renewal" mostly go to pay charge backs, declines and advancement loan interest? Please advise.

Also, are there final expense companies or organizations that will let you work and be paid "as earned". I am curious to find out what others have experienced.

Thank You!

I get renewals, but FE is not the primary product I sell. I do make sure it's high quality business. Also, I prefer replacement business or adding to coverage. I normally don't write an app when someone has no coverage. If they are 65 or older and they have no insurance, they probably won't keep it if they buy it.

 

[MedicareMillionair]

This is where both of you have it wrong. It is not YOUR money until you earn it. Any advance you get is a loan and not what you have earned.

I either get 50% advance or as earned. Either way it works fine. Whether it's my money or the companies is fine as long as they aren't charging interest on the advance.

The only time I'd worry about this is if you are getting high advances or writing poor quality business.

 

[myinsurebiz]

I either get 50% advance or as earned. Either way it works fine. Whether it's my money or the companies is fine as long as they aren't charging interest on the advance.

The only time I'd worry about this is if you are getting high advances or writing poor quality business.

I only take 6 month advances.

I'm starting my Team back up in 2019. Going to give Street Level Contracts - but limiting brand new Agents to a 3 month advance and all other Agents to 6 months.

 

[bboman23]

I only take 6 month advances.

I'm starting my Team back up in 2019. Going to give Street Level Contracts - but limiting brand new Agents to a 3 month advance and all other Agents to 6 months.

Start your team back up? Have they just been sitting around waiting on you to figure out your next get rich quick scheme?

 

[DayTimer]

I get renewals, but FE is not the primary product I sell. I do make sure it's high quality business. Also, I prefer replacement business or adding to coverage. I normally don't write an app when someone has no coverage. If they are 65 or older and they have no insurance, they probably won't keep it if they buy it.

Good chance they'll keep it for at least nine months though, which means it is likely worth the effort to write it. For many of those folks you are replacing, the policy you are replacing may very well have been their first. Responsible life insurance coverage has to start somewhere. I have written quite a few who had no insurance, and most of it seems to be sticking. I did recently have one lady who started in May cancel by calling the company directly and another who called me to tell me he might have to cancel also. In both cases, each has just had a significant reduction in earnings. I'm trying to convince him to reduce the face and keep something. But she made it through 7 months of the nine month advance, and he actually would be paying me my 10th month if he keeps it in force. Time will tell.

 

[myinsurebiz]

Start your team back up? Have they just been sitting around waiting on you to figure out your next get rich quick scheme?

None of my ideas were ever "get rich quick" concepts.

I'm actually excited. With the CFG and Americo Eagle apps we can show a blind monkey or gecko how to sell Final Expense.

Still love ya BoBo - Spring is coming soon - go fishing and at least - catch a buzz.