Bankruptcy - can I be an agent?

[GPaq17]

Every old timer and especially every newby needs honest straight forward communication. It is better to be told the truth here, even when it hurts, than it is out there in the real world. Right now we are seeing a plethora of people from real estate, mortgage, lending, banking, etc. look at insurance as a way to quickly replace the fast big money they were making in a speculative area of the market. Would somebody please tell them it will probably take 2-3 years to learn enough about the business and to develop a market before they earn a decent income if they even survive to that point.

I am a captive Agent for a medicare company trying to break into life and health and let me tell you, it has not not been a quick buck by any means. I am way in the hole to start due to advertising and other expenses. I am thinking if I stay with it for another 1-2 years diligently, I can create a decent BOB.

On a side note, thank you everyone in these rooms for posting the information that you do. It is really appreciated to hear your experiences and is amazing how helpful everyone is. Goose bumps...... haha

Thank you!

 

[myinsurebiz]

" OK, here goes..... WOULD THAT BE ADVANCED COMMISSIONS YOUR LIVING OFF OF.... OR EARNED COMMISSIONS? "

Advanced of course. Actually 5 months on submittal and 5 months on issuance.

" Ok, based on only 4 months in this business... and the normal one month turnaround in getting deals issused, then the normal delay in getting the commissions dept. at the insurance companies to cut the earned check we know yiou are on advanced commissions. "

LOL at a months turnaround. Since we only do healthy people - the 3 health carriers we represent have been issuing the biz within 7 business days MAX - mostly 5 days. We get paid on Friday for any business submitted / issued by the preceding Friday.

" Any joker can slam a deal against the wall and get that advance check on submit... "

I've seen plenty that can't . . .

" You have been in this biz for 4 months tops... no offense, but you just have not had any of the negitive situations come up that can affect you book of biz... advance commissions are not commissions... they are nothing but a loan against a promise that the client will stay on a policy... "

Agreed. Key is to have more coming in than going out. I imagine that anyone on "advanced" commissions would be in great debt if they ever quit selling. The idea is to hang around long enough to be able to receive "as earned" once the renewals begin to flow.

" The OP offered up that this industry was a "QUICK" way to fund retirement income with "renewal" commissions... My comment was just clueing him in to the fact that his comment was not valid. "

But - it actually is valid IF he writes good business and educates and services his clients . . .

" Right now we are seeing a plethora of people from real estate, mortgage, lending, banking, etc. look at insurance as a way to quickly replace the fast big money they were making in a speculative area of the market. Would somebody please tell them it will probably take 2-3 years to learn enough about the business and to develop a market before they earn a decent income if they even survive to that point. "

I respectfully disagree. People can be taught how to utilize TeleSales Reps to assist them in marketing, to where the Agent only has to close the deal, and thus is way more productive. With our system - a TeleSales Rep can make $150 to $200 a day while creating enough traffic for their managing Agent to knock down 2, 3 or 4 G's a week - depending on the number of TeleSales Reps they manage . . .

Tom

 

[Bob_The_Insurance_Guy]

I agree with Peeler. I've noticed in my Career Networking Group, that those that were once in IT, Real Estate, Mortgage, etc. are now seriously considering working for AFLAC, UA, and their ilk.

They all say the same thing, they are going to "give it a try", and it can be an "easy, on-going" stream of income for them, until they "get back into their industry".

Nothing burns me more.

Now, these are the same people who had no interest in getting appointed with Assurant, Kaiser, Blue Cross earlier, and working "on commission".

It's the "Ah, I'll give it a try, and if it doesn't work out, then I'll go into something else" attitude. Truthfully, and this is going to sound harsh, if I were an insurance company, and you came to me with a bankruptcy, I'd be concerned, whether it was as an agent OR a broker.

I've been turned down by insurance companies in the past, and I've moved on. I've understood their position.

If you've made poor decisions, monetarily, why would I take the risk that you've suddenly changed, as of yesterday? It's like going to an auto mechanic who doesn't have a driver's license.

My suggestion is to find a wage-earning job, keep that for a while, show some stability with finances, THEN apply. You'd be better off paying $10 and letting your wife be an AVON rep. That's a business. It's all cash, you get renewal orders constantly, if you are providing good service, and the income ceiling is unlimited, just as in insurance.

There's a lot to learn with insurance. More than most people are aware of. Most of it is trial by fire. You've got to learn acronyms, maximums, deductible, qualified medical expenses, what each company will, and will not pay for.

Do yourself a favor. Pay $10. Have your wife attend an AVON meeting, buy some brochures, set them out around town, have some "home" parties, and let that pay your retirement.

 

[taterpeeler]

" OK, here goes..... WOULD THAT BE ADVANCED COMMISSIONS YOUR LIVING OFF OF.... OR EARNED COMMISSIONS? "

Advanced of course. Actually 5 months on submittal and 5 months on issuance.

" Ok, based on only 4 months in this business... and the normal one month turnaround in getting deals issused, then the normal delay in getting the commissions dept. at the insurance companies to cut the earned check we know yiou are on advanced commissions. "

LOL at a months turnaround. Since we only do healthy people - the 3 health carriers we represent have been issuing the biz within 7 business days MAX - mostly 5 days. We get paid on Friday for any business submitted / issued by the preceding Friday.

" Any joker can slam a deal against the wall and get that advance check on submit... "

I've seen plenty that can't . . .

" You have been in this biz for 4 months tops... no offense, but you just have not had any of the negitive situations come up that can affect you book of biz... advance commissions are not commissions... they are nothing but a loan against a promise that the client will stay on a policy... "

Agreed. Key is to have more coming in than going out. I imagine that anyone on "advanced" commissions would be in great debt if they ever quit selling. The idea is to hang around long enough to be able to receive "as earned" once the renewals begin to flow.

" The OP offered up that this industry was a "QUICK" way to fund retirement income with "renewal" commissions... My comment was just clueing him in to the fact that his comment was not valid. "

But - it actually is valid IF he writes good business and educates and services his clients . . .

" Right now we are seeing a plethora of people from real estate, mortgage, lending, banking, etc. look at insurance as a way to quickly replace the fast big money they were making in a speculative area of the market. Would somebody please tell them it will probably take 2-3 years to learn enough about the business and to develop a market before they earn a decent income if they even survive to that point. "

I respectfully disagree. People can be taught how to utilize TeleSales Reps to assist them in marketing, to where the Agent only has to close the deal, and thus is way more productive. With our system - a TeleSales Rep can make $150 to $200 a day while creating enough traffic for their managing Agent to knock down 2, 3 or 4 G's a week - depending on the number of TeleSales Reps they manage . . .

Tom

my point is confirmed.... just like i said.... any reason that u decided to include your long arse siginature on that post?

 

[LGilmore]

While the business seems easy, it ain't. On the internet we can all be "supersalesmen", yet none of us are required to display our tax returns.. so we are all MDRT..

All I can tell you is on every piece of paperwork I filled out and still fill out with companies there is a bankruptcy question. Also on my E&O insurance there is a bankruptcy question. You may be able to license with a carrier but not get malpractice insurance or have to pay a extra premium.

Remember you are responsible (liable) for your advice in this business. If you are planning to enter it, be aware that you could very well lose everything here too if you mess up.

Dave and Susy are famous screw ups who are now rich. Realize they are entertainers and are not responsible for their advice. Most of us who have entered this profession have not screwed up financially.

 

[Expat]

Starting out in the health insurance business will seem like “easy money”, in fact like taking candy from a baby.
Of course this only applies to people with a good work ethic and the ability to sell.
Things look great when you are new, submit the application and sure enough you get paid on it, things are great, life is good and the money rolls in.
However, you need to know that there are a lot of pitfalls along the way.
When dealing with agent’s commissions, insurance companies generally move at two speeds, dead slow and stop. Sure enough when you first get paid things seem to hum along at top speed. Then along comes the buyer’s remorse, the change of situation, the next agent with a “better deal”. I don’t care how good you are in this business, this will happen.
Also you may think that you have only written healthy people, but people have been known to lie on applications. (This of course will result in the company rescinding the policy, another charge back)
When it does (and it will), the chargeback’s kick in, and nearly all companies take the chargeback straight out of your pay cheque. Even worse, when the policy has been on the books for less than 4 months and falls off, this will result in a full charge back.
The other scenario is that the insurance company will suddenly have a major rate increase, or change the plan or change the network. I have seen all of these scenarios happen and none of it will help your business stay on the books. In fact they drop off like crazy.
If this business was so easy there would be a lot more agents, and the insurance companies would be paying a lot less commission.
Think about this, and make sure you keep some money back for when this happens to you. (When it happens to you, not if it happens).

 

[myinsurebiz]

" If you've made poor decisions, monetarily, why would I take the risk that you've suddenly changed, as of yesterday? It's like going to an auto mechanic who doesn't have a driver's license. "

1) Who said he made "poor monetary" decisions? Businesses fail for many reasons other than poor decision making. LOL - what a comment . . .

2) Why would a auto mechanic need a drivers license?

" My suggestion is to find a wage-earning job, keep that for a while, show some stability with finances, THEN apply. You'd be better off paying $10 and letting your wife be an AVON rep. "

LOL - read what you wrote! Why demean the man?

" There's a lot to learn with insurance. More than most people are aware of. Most of it is trial by fire. You've got to learn acronyms, maximums, deductible, qualified medical expenses, what each company will, and will not pay for. "

Can be taught in a week online and be referenced online at anytime. It's not rocket science nor brain surgery. I have a high school drop out living in a motel because she lost everything, and she is selling online. Guess what? She is one of the greatest producers. Be careful who you judge.

" Do yourself a favor. Pay $10. Have your wife attend an AVON meeting, buy some brochures, set them out around town, have some "home" parties, and let that pay your retirement. "

You are a jerk to speak to this gentleman, who at 57 years old, has seen a lot in life I imagine. Shame on you for thinking you are all that and belittle this man, whom you don't even know by suggesting his wife become an Avon rep!

Tom

 

[taterpeeler]

WOW!!! This cat is off the charts...... Tom, I bet in 2 years you are out of the insurance business, you just don't seem to get it. You make this industry sound like we are all slimely dirtbag burial plot salesman

i have no comment on the Avon salesrep stuff.... Dunno anything about AVon... all i remember is the commerical that says... "ding dong... Avon calling" from back in the 70's

 

[myinsurebiz]

" WOW!!! This cat is off the charts...... Tom, I bet in 2 years you are out of the insurance business, you just don't seem to get it. "

What don't I get?

" You make this industry sound like we are all slimely dirtbag burial plot salesman. "

Actually - most of you guys seem to think anyone new coming into the industry must be that type.

In addition - why the need to label people and demean them? Just because someone may sell burial plots makes them "slimy dirtbags"? The lady that sold me my burial plots when my wife died in 1997 at 30 y/o wasn't a "slimy dirtbag" - she was actually very charming and assisted me and my family at a time of need . . .

But - beating a dead horse here. You will never change your outlook and I will keep moving forward . . .

Such drama lately at this forum. Perhaps a vacation is in order. I'm also a Travel Agent - let me know - i'll book you a nice cruise or all-inclusive vacation to Jamaica.

Tom

 

[taterpeeler]

You have been in the health insurance business for one month?.... well according to DOI. Best keep that travel agency going.... your health clients have not even had enough time to make their first payment yet...lol

AMERICAN NATIONAL LIFE INSURANCE COMPANY OF TEXAS ACTIVE 07/01/2008 GOLDEN RULE INSURANCE COMPANY ACTIVE 08/11/2008 GUARANTEE TRUST LIFE INSURANCE COMPANY ACTIVE 06/25/2008