Becoming an Independent Insurance Agent

[manny0129]

Do you guys know any GA or good starting point for Group Health in Florida? I want to get my feet wet and jump into Group health sales but can't figure out where to start.

I looked into HealthOne and was very excited until I was told they only do individual health.

 

[Pangaea]

Do you guys know any GA or good starting point for Group Health in Florida? I want to get my feet wet and jump into Group health sales but can't figure out where to start.

I looked into HealthOne and was very excited until I was told they only do individual health.

All of the veterans that I knew who were in group health took a serious commission beating or are no longer in group health. Why group health?

 

[MYOWNCO]

Re: Becoming a health insurance agent

So learning the wrong way to sell health insurance is the right way to start? Ummmmm, ok. If this board had been around in '03 I would never have shown up for training.

Crabcake, great stuff you've been posting. Do you have a roadmap for Final Expense Agents new to the business posted anywhere on this forum?

Much appreciated.

 

[The Rabbi]

After years of very hard work I´m happy to have dozens of clients but it turns out that I´m only working for those clients who have known me for so many years. They never fail to renew their policies but I don´t make money from any of that anymore. They take most of my time; I´m the one who must make sure that they renew their policies on time; whenever they need to use the insurance, they call me and expect me to be with them with the process from beginning to end, etc. I either work for them and keep giving them an excellent service making $0.00, or I devote my time to finding new clients. Aren´t there service providers for professionals like us, that can always look after all our giving them an excellent service at a cost for me of course? How else can an insurance sales agent keep making a living??

You have to teach your clients about calling the company and to call you if they can't get satisfaction.

 

[Tearmann]

Can you go into the strategy of using a trial app in the case you are not sure if the client will be approved or decline? Or is it best to call and ask someone at the carrier?

I find that most carriers will do a risk assessment for you if you call and ask.

 

[wjw0006]

you should talk to Red Blooded American

he's IA in AZ I believe and seems to be very knowledgeable

 

[Jessebjobe]

I wish I would have had this "roadmap" to go by when I entered this profession.

I have learned so much from this forum--been in the BIZ for three weeks and having sucess because of it--no doubt

 

[mkennedy]

This is all fantastic advice! Thank you!

Does anyone know if there are any posts like this for P&C? Or is there someone out there who would be willing to provide the same type of advice for P&C?

 

[jeff88]

WARNING: If you choose to go through a Golden Rule Key broker and you write more than 2 applications in a six month period of time you need a written release to move to another broker, go direct or become a Key Broker yourself. You might want to get a document signed where the broker agrees to release you under certain situations. In any case, interview a Key Broker very carefully before you agree to contract with them.

If I go through 2 imo's that both have golden rule, can I not get appointed with both of them to sell it? What do I need to know about this?

 

[5always]

Re: Becoming a health insurance agent

As more and more new agents join this board I think it's important to create a sticky - something easy to refer to where you don't have to search through 6 months of posts. If other senior agents want to add something just reply and I'll add it into this sticky.

First: Join The National Organization for Life and Health Agents (NOLHA). We are set up for A to Z training, support, networking also offer discounts on the products, services and leads. There is also no cost to join.

THE VERY BASIC ADVICE IF YOU'RE JUST LICENSED:

If you want to become and independent health insurance agent you should have at least three months of bills in the bank. Basic marketing is around $300 per week so you'll either need marketing money for at least six weeks or be prepared to cold call. The mindset you should have is you're going to be a small business owner. Owning a business in the past or at least past 100% commission sales experience is extremely helpful.

Ask yourself these questions:

1) Do I have an entreperneurial spirit? Can I manage my time on my own without anyone hanging over me?

2) Am I good on the phone? Whether you see your client in person or sell over the phone you'll need sharp phone skills.

3) Do I have spousal support? If your spouse is dead set against this or you have never been on commission during your marriage then.....

WHAT CAN I EXPECT TO MAKE:

Not to sound smug but that depends on you - zero to $100,000 1st year. A good hard-working agent can submit $10,000 per week in volume if you're busting your butt. At 10% that's $1,000 a week. Renewal income doesn't really kick in until month 13 and averages 4% however renewals are lifetime with most carriers as long as the policy stays on the books. The more years you spend in the biz the more you'll have in renewal income.


WHICH COMPANIES WRITE INDIVIDUAL BUSINESS?

This is a list of companies that offer individual health insurance. Not all of these companies will offer coverage in your state so I'd suggest going to you state's department of insurance to get a list. Companies that offer an advance on commissions are in blue.

Aetna, American Medical Security, American Republic, Assurant Health, Blue Cross (find your state's Blue Cross) Celtic, Continental General, Coventry, Golden Rule, GTL, Humana, Kaiser Permente, Unicare, World and United American. You can Google any of these companies for their website.

To make a living just selling individual health insurance you will need Golden Rule and Assurant Health.

HOW DO COMMISSIONS WORK?

With the exception of some Blue Cross companies that pay a flat "per policy" commission you will earn a percentage of the annual premium. The average monthy premium is $300 X 12 = $3,600 average annual premium.

Commissions range from 4% to 15% depending on the company. Companies also pay either as-earned or advanced commissions.

As-earned: You will receive a monthly commission each month the policy is in force during the first 12 months. Take a 12% commission and a $4,000 premium to make the math simple. In this case it's $4,000 X 12% = $480 commission divided by 12 months. This means you'll earn $40 a month for 12 months.

Advanced: Same example: $4,000 premium X 12% = $480. In the case of a 12 month advance you'd receive the entire $480. In the case of a six month advance you'd receive $240 - the rest would come as-earned. In the case of any advance, if the policy lapses before the advance is earned you will be charged back.

WHO DO I CONTACT TO GET APPOINTMENTS?

This is where it gets complicated. Some companies offer direct appointments. You simply go right to the webite, download the forms and fax 'em back. Aetna is an example.

With other companies you can choose a general agent or brokerage. What you'll want to do is interview several general agents or brokerages and simply find out who's offering the best total package of commission, training and support. One general agent might offer 10% with tons of training and support - another might offer 12% and you're on your own. The point is shop several offers.

Important note: In most cases once you contract through a general agent or broker it's binding for at least 6 months. That means if you come to find you have a bad deal you might not be able to get out of it quickly. Do your homework.

The best advice? Contract with Health Choice One: Health Choice One - Health Insurance, Medical Insurance, Life Insurance, Denver, Colorado - they are "one stop shopping" for carrier contracts, offer top contracts, you own you business and they do not lock you into contracts! Ask for Scott Slutzker.

WHAT MARKETING TECHNIQUES WORK?

If you're broke:

1) Get a list of small business owners and start telemarketing. I use Mailing List - Sales Leads , Telemarketing, Business, Consumer - GoLeads which is $9.95 per month. You can make about 50 calls an hour and generate 2 leads. You'll close about 1 out of 15 so you can do the math: For every 7 hours of calling you have a deal.

2) Business to business. Print up flyers and hit business areas. Ask for the owner and offer them free quotes for health insurance.

3) Doorhangers. You can get 10,000 for $300 at Door Hangers - Printing - DoorHangers.com That's 3 cents a pop and you'll get 1 deal per 1,000 placed. I'd hit townhome areas where you can slap up 200 per hour. At 200 per hour that's 1 deal for 5 hours worked.

If you have marketing money:

1) Internet leads. They cost around $8 a pop and if you're new count on closing 1 out of 20. That's still $160 spent for around $600 return on average so you'll need a high volume. Realize that you will be going head to head with other agents.

2) Telemarketers. You can contract through a telemarketing service or simply place free ads on craigslist classifieds: jobs, housing, personals, for sale, services, community, events, forums to hire home-based telemarketers. You can pay them between $10 to $15 an hour and they'll call small business owners, generate 2 leads per hour and expect to close 1 out of 15.

Those two methods are the main methods most agents use. You can supplement with your friends and family network, social clubs and your community.

Johnny,

This is great information and I have been looking all over the site to find something of the sorts. I am looking to get started in this industry mostly in Life but have not ruled out doing basic health. I am trying to decide between going captive or starting independent. I like the idea of going independent to start mainly because I typically work nights and I could prospect and set appointments during the day and run appointments during my 2 to 3 off days each week.

I was looking to start with final expense seeing it is the least complex product to start. I want to make this a full time career and just was wondering if it is worth starting captive and diving right in or just starting independent and working my way in.

Thanks for this post.

P.S.

If this were for starting in Life what would change or differ? Maybe nothing but just wondering. I don't want to reinvent the wheel I would much rather be a sponge and soak of some of the knowledge available.