Becoming an Independent Insurance Agent

[A.I.P.G]

Re: Becoming a health insurance agent

Great Info- thanks very informative
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Great Info- thanks very informative

 

[cahallinsurance]

Hi Everyone,
I have been reading this thread for sometime, and it has been a huge help to me. I am currently in the process of starting my own independent insurance agency. I am currently a Graduate Student working on my M.B.A. and also working for State Farm Insurance. I have a close family friend that sells Grange insurance, and seems to be very successful. I don't want to find myself tied down to one given company and feel that independent is best for me. I had started in the State Farm process, but I don't feel that it's really for me. I have looked into insurancenoodle and also superior access. I was wondering what other types of companies to look into. I want to do mostly P&C, but also eventually get into L&H. My fiance and me are both licensed in P&C and I am planning on getting L&H & Series 6. If anyone has any suggestions please let me know. I will let you know that my company is going to be in a smaller rural area along the ohio river.

 

[CHUMPS FROM OXFORD]

"I am currently in the process of starting my own independent insurance agency. I am currently a Graduate Student"

It will be tough, but you can do it. The lack of experience hurts a bit. If you could build up some experience (and savings!) for a few years, your chances of long-term success might be better.

Regardless...if you work hard, good things can happen.

 

[GreenSky]

Regardless...if you work hard, good things can happen.

Damn it. There's always a catch.

Rick

 

[CHUMPS FROM OXFORD]

Well...If you don't work hard...good things can still happen!

 

[maleman2045]

Great post.
Some things I've already known and great to see them being reinforced/validated by others without asking for it.
Some things I've learned and am very excited to get them into practice.
I am using a DBA from my LLC as, for me, it completes the level of professionalism I wish to convey. I also think that providing information with a corporate name adds a little more credibility. So I hope..

I also think that this post should be included in the intro email as good suggested reading for all. Even the most seasoned professional should look for validation of his ideas/processes or see if something new is creeping on the horizon.

Looking forward to posting elsewhere on this forum and the best to all.

 

[Agent_007]

good info here!

 

[Guest]

IS THERE ANYWAY WE CAN TIE THIS ALL TOGETHER?

Step 1: Research the commissions and plans available in your state. Make sure you can actually make a living in your state.

Step 2: Get E&O coverage then get appointed with all the available carriers in your state.

Step 3: Get your marketing plan together; telemarketing? Internet leads? Walk and talk (B to B)?

Step 4: Start doing intense studying on the plans.


OK, I HAVE MY FIRST LEAD - NOW WHAT?

1) Introduce yourself an an independent agent and explain that your job is to help people who are currently having a problem with their health insurance. Either the rates are do high, they don't like their current plan or they don't have coverage.

2) Find the problem. If the client doesn't have a problem you don't have a deal - "Yeah...I'm pretty happy with what I have now and the rate's fine but if you want to send some quotes that's ok." There's no deal there. Here's a deal: "Our rate just went up to $750 a month and we really need to do something." Or "I just had to drop coverage a little while ago and I really need to get something going again." Basically, your client needs to complain about something and be conversational. Dump off the people with no interest and work with the rest.

3) Qualify. The coverage you recommend is largely going to depend on their health history. You want to waste 45 minutes going over plans and they're 5.6 340 pounds? Diabetic? Explain to your client that the rates and coverage you recommend depend on their health. If there's any pre-existing conditions contact the pre-screen departments of your insurance companies so you can compare the underwriting decisions.

4) If you're a face to face person, they qualify and you can help them go ahead and set an appointment. Let them know a price range "From $320 to $550 I can offer you several plans. I can meet with you, go over all of your options and answer all your questions." If you're going to do this over the phone (not recommended for brand new agents) then ask for a specific time to call back when they'll have 15 minutes to go over all their options.

5) When you're going over the plans don't be a salesman. Be an advisor. Simply explain their options and always recommend the best coverage possible that fits into their budget. HSAs are almost always the correct plan to recommend they best protection. You will be doing a great disservice to your clients by not studying and becoming an expert on HSAs.

Important note: Health insurance is supposed to be there to protect people's assets in the case of an unforseen medical event. Anyone can handle small bills, not many can handle large ones. Avoid selling plans that place limits on prescriptions and outpatient procedures. Under no circumstances are agents supposed to pull clients off major medical plans and offer limited plans just to save money without explaining the potential liablity.

On a personal note, one of my best friends has been diagnosed with stage 4 non-hodgkins lymphoma. Forget all all the chemo - he's on shots to boost his immune system. Those shots are $3,000 a week and it's considered outpatient drugs. He's also 40 years old. You never know what will happen and health insurance should be designed to be there.

And for all those "My client's healthy so why does he need all that protection" agents just ask youself if it would be absurb for people to sign up for this:

Case 1: Your house burns down and you owe $200,000. Thank God you have homeowners. But the agent comes and hands you a check for $2,500 and says "I'm sorry but in your contract it states that for electrical fires you only get $2,500 maximum.

Case 2: You get into a horrible car accident on the way home from work. You car insurance agents hands you a check for $1,000 and says "in your contract it states that if an accident occurs during rush hour you only get $1,000 max."

Does this sound crazy? Ok...

Case 3: You have an bad accident working around your house. The total surgical bill is $80,000 and now you're on $3,000 a month of medication. But your insurance agent calls and say "I'm sorry, but you've exceeded your benefits."

So....is it more likely for your house to burn down or have a medical issue?

hey new guys please read the important note by this poster, even BCBS is pusing their simple blue and their simple blue plus plans to be more competive, i have to kill other plans better and my job is much harder but i do sleep with a clear conscious, and i will print a copy of this to have my potential clients read at every appt.

 

[claymoradi]

We have a shopping center in the suburb of Houston, Texas (in League City). We are interested to open an Insurance agency in the corner store (2000 sqft). We like to partner with an existing agent to operate in this location.

For more info, please contact Clay Moradi at 281 536 2734; email: [email protected].

Thank you

 

[hlakhani]

I would say that this is prob the most valuable info i could have found while simply doing a internet search, thanks John. I am someone who is completely new and wanting to start a career in insurance - i hope i am not in the wrong section as i am looking for information that is very fundamental to everyone here.

Basically, I am looking to launch a career in insurance with an emphasis on P & C - and health as a secondary product. So far i have considered things like an all state agency or a state farm ( i know) But i dont want to be confined to these companies and would rather have multiple carriers inlcluding the above -so looking to be an independent insurance broker with the above products. But i have no idea where to start or get information on accomplishing this task which is my main question.

Licensing, back ground, finance, skill sets are all not a problem - can you give me any advice John?

Again - i did notice that this is primarily a health insurance thread but i dont find helpful credible sources often......any help would be appreciated