Kayla Hall
Expert
- 27
What is the PROS & CONS OF CONTRACTING DIRECTLY WITH THE CARRIERS? IS THIS GOOD IN SOME INSTANCES OR NOT?
CONTRACTING WITH CARRIER
- Thread starter Kayla Hall
- Start date
- 7,012
You can usually get the same levels or better through an IMO. Just make sure your IMO provides an upfront release agreement, training, support and high quality leads.
- 17,077
Contracting directly with carriers would make it so that no one but you ever sees your business or is involved in your business in any way. To some agents that is what they want. No one has any control over you. You have complete freedom to sink or swim on your own. You would think going direct gets you higher commissions. But that is rarely the case. Especially if you are new to the business.
Using an up line gives you some extras but only if you use them. Usually training, lead programs, much better underwriting assistance, and usually the same or higher commissions than going direct to the carrier.
When I say much better underwriting assistance here is what I mean: if you are direct to Mutual of America for instance and have a case that you have all their health conditions and meds. You call them to see if they will accept that case. The answer is always going to be Yes! Send it all in. But the case may be graded with no real coverage for two years and a real high premium. But yes they will take it.
Your Upline will analyze all the companies you have and tell you the correct company to place it with. They might be 1st day full coverage and with a much lower premium at the correct company.
There are positives and negatives to using a good Upline agency. I would say for brand new inexperienced agents, going direct would be more frustrating and have less chance of success.
But keep in mind I own an agency that recruits and trains agents. So could be biased.
- 30,590
- Thread starter
- #5
Kayla Hall
Expert
- 27
Hi there, why would you say that's not true??
- 5,943
The money... and control over your contract always trickles down hill...
You need to ask yourself how many hands do you want in your pot?
When you read some of the IMO drama on here... you moight want to pause and consider.
You need to ask yourself how many hands do you want in your pot?
When you read some of the IMO drama on here... you moight want to pause and consider.
- Thread starter
- #7
Kayla Hall
Expert
- 27
Can you clarify your message for me and/or be more specific. I'm not sure if you are saying that it is a okay idea, or dont do it AT ALL.
- 5,943
I go direct where I can... but that is me. For you, you might want or need an IMO. Are you a trained agent or new?
- 30,590
Because the answer ISN'T always going to be yes. If the prospect doesn't qualify, why would the company want to waste the money to process the app. Also, not every company has Graded or Modified. Oxford for example only has Level. You either get it or you don't.
Newby was just trying to sell the need/value for a FMO using "marketer speak". I believe that FMO's can have value, but that statement is off. You should be able to do your own underwriting after you've been in the field for a bit.
- 5,943
However... it is important to have FMO if you want to get at least one Christmas card each year...
Ad agent recently confirmed that...
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