Final Expense Opportunity

[FinAdvsr]

I want to make this as condensed as possible. For the past 2 years I have been building and investment advisory practice for one of the major firms. I have been successful but it is an immense amount of pressure trying to reach the 5-7 year mark when your business can be put on auto-pilot. An acquaintance I see at the gym talked to me about selling FE. He's been doing it for around 7 years and makes between $70-$100K. Now that's not big money and is less than I make but his stress level is a fraction of a fraction of mine. I'm licensed to sell all securities and all lines of L & H. But my firm (nor any of the major firms) allow us to sell FE which somewhat makes me cautious about it. But nevertheless here is the opportunity I am seriously considering: he is an agent with Transamerica and he's offered me to come in under him and he will provide me with 20 leads at a time. Each time i write 4 policies from those 20 I will receive another 20 and it will pay 60% of the 9 month premium. So A) does this sound like a good opportunity & B) can you make a living selling FE without running around like some panhandler at a Caribbean port of call? Any advice from some vets would be greatly appreciated. Thanks for taking the time to read.

 

[liorselamb]

I want to make this as condensed as possible. For the past 2 years I have been building and investment advisory practice for one of the major firms. I have been successful but it is an immense amount of pressure trying to reach the 5-7 year mark when your business can be put on auto-pilot. An acquaintance I see at the gym talked to me about selling FE. He's been doing it for around 7 years and makes between $70-$100K. Now that's not big money and is less than I make but his stress level is a fraction of a fraction of mine. I'm licensed to sell all securities and all lines of L & H. But my firm (nor any of the major firms) allow us to sell FE which somewhat makes me cautious about it. But nevertheless here is the opportunity I am seriously considering: he is an agent with Transamerica and he's offered me to come in under him and he will provide me with 20 leads at a time. Each time i write 4 policies from those 20 I will receive another 20 and it will pay 60% of the 9 month premium. So A) does this sound like a good opportunity & B) can you make a living selling FE without running around like some panhandler at a Caribbean port of call? Any advice from some vets would be greatly appreciated. Thanks for taking the time to read.

Given you have no FE experience, other than leads, what else is he offering you as far as training?

At 60% FYC you better buy your own leads. Find a good FE IMO that will teach you how to sell it, but will not rob you.

 

[Tahoe Ray]

I want to make this as condensed as possible. For the past 2 years I have been building and investment advisory practice for one of the major firms. I have been successful but it is an immense amount of pressure trying to reach the 5-7 year mark when your business can be put on auto-pilot. An acquaintance I see at the gym talked to me about selling FE. He's been doing it for around 7 years and makes between $70-$100K. Now that's not big money and is less than I make but his stress level is a fraction of a fraction of mine. I'm licensed to sell all securities and all lines of L & H. But my firm (nor any of the major firms) allow us to sell FE which somewhat makes me cautious about it. But nevertheless here is the opportunity I am seriously considering: he is an agent with Transamerica and he's offered me to come in under him and he will provide me with 20 leads at a time. Each time i write 4 policies from those 20 I will receive another 20 and it will pay 60% of the 9 month premium. So A) does this sound like a good opportunity & B) can you make a living selling FE without running around like some panhandler at a Caribbean port of call? Any advice from some vets would be greatly appreciated. Thanks for taking the time to read.

Are you with a wirehouse/captive insurer? You could probably double your payout by moving to indy (even bringing 80% of your clients, you'd likely up your take home by 60% on the investment piece)...If you're going to be stressed you might as well make some dough.

I have no experience with FE so hopefully you'll get some more specific responses.

 

[FinAdvsr]

Thanks for the response lioreslamb,

In my line of work, it takes 7-9 quality contacts with a prospect before you even think about getting an appointment to talk about them giving you $750,000 or more of assets they've accumulated over the last 30 years. There are no leads in the investment world. I feel pretty confident I could close a 10,000 face value policy to somebody who has at least showed an ounce of interest. With that being said....maybe not.

 

[Josh]

I want to make this as condensed as possible.

A few spaces would have helped make it easier to read

For the past 2 years I have been building and investment advisory practice for one of the major firms. I have been successful but it is an immense amount of pressure trying to reach the 5-7 year mark when your business can be put on auto-pilot. An acquaintance I see at the gym talked to me about selling FE. He's been doing it for around 7 years and makes between $70-$100K.

Define "making". A lot of agents look at what their gross commissions are and romanticize that the mileage deduction is a "tax loophole" and similar things. There's also a pretty big swing between $70k and $100k. Not that the answer to any of that means much, but points to consider.

But nevertheless here is the opportunity I am seriously considering: he is an agent with Transamerica and he's offered me to come in under him and he will provide me with 20 leads at a time. Each time i write 4 policies from those 20 I will receive another 20 and it will pay 60% of the 9 month premium. So A) does this sound like a good opportunity

For him, yes. For you, not so much.

& B) can you make a living selling FE

Absolutely, there are many folks on here and elsewhere that do quite well with it.

To give you some food for thought:

You can buy your own FE leads and get 100%+ contracts, so if you write a $50/month policy you still bring home 75% advance of $600, but as long as it stays on the books you get the full $600. At least one IMO has a fixed lead program with solid contracts that can get you rolling on that, seems like a much better deal. There are a lot of other flavors of that same deal around, but 60%, even with "free" leads, is a bit low. What happens if you don't sell 1 in five? How much do you have to pay for leads? How many can you get a week? What carriers would you have access to?

 

[John Galt]

I want to make this as condensed as possible. For the past 2 years I have been building and investment advisory practice for one of the major firms. I have been successful but it is an immense amount of pressure trying to reach the 5-7 year mark when your business can be put on auto-pilot. An acquaintance I see at the gym talked to me about selling FE. He's been doing it for around 7 years and makes between $70-$100K. Now that's not big money and is less than I make but his stress level is a fraction of a fraction of mine. I'm licensed to sell all securities and all lines of L & H. But my firm (nor any of the major firms) allow us to sell FE which somewhat makes me cautious about it. But nevertheless here is the opportunity I am seriously considering: he is an agent with Transamerica and he's offered me to come in under him and he will provide me with 20 leads at a time. Each time i write 4 policies from those 20 I will receive another 20 and it will pay 60% of the 9 month premium. So A) does this sound like a good opportunity & B) can you make a living selling FE without running around like some panhandler at a Caribbean port of call? Any advice from some vets would be greatly appreciated. Thanks for taking the time to read.

Ill make this condensed, he is trying to screw you. Forget the free 20 leads, they are probably old reworked leads or his old leads, just get contracted at full street level with a reputable FE firm and get your own leads, if you need a great FE FMO check out fexcontracting.com, I am in that group and it is really great, if you need help with leads you can talk with others on the forum or feel free to pm me anytime.

 

[FinAdvsr]

Thanks John Galt, that is very helpful information. I will definitely be reaching out to you on this. So I guess I'm just a little confused. Why do I have to "sign up" under somebody? I am very familiar with Transamerica and have done a lot of business with them on the annuity side which is what I liked about the opportunity, the fact that it was a reputable carrier. Can I not just become an agent directly for TA? And not sign up under this guy? Would that make the commission structure different?

 

[TwiLight]

Your friend is not helping you. That is for certain.

If you plan to stay at your current firm as a registered rep, you would have to disclose to them that you would be doing FE and getting an appointment from an outside company.

These are Security Regulations that you must follow.

If you truly want to work FE and work in investments, give me a call/email. We can help move you to an independent Broker Dealer or RIA to allow you to also pursue FE.

 

[FinAdvsr]

Moving forward, I am very aware of no-compete, disclosures, securities regulations, etc. Thanks for the input so far everyone. I'm just getting information at this point and that's it.

 

[Newby]

Thanks John Galt, that is very helpful information. I will definitely be reaching out to you on this. So I guess I'm just a little confused. Why do I have to "sign up" under somebody? I am very familiar with Transamerica and have done a lot of business with them on the annuity side which is what I liked about the opportunity, the fact that it was a reputable carrier. Can I not just become an agent directly for TA? And not sign up under this guy? Would that make the commission structure different?

Signing up directly under TA will get you a lower contract, not higher. Plus you don't know what you don't know. We have helped many guys in your position open their eyes to the FE world and they are all happy they did. Cases that you thought were uninsurable can pay huge.

20-leads of the quality your friend was going to give you will cost about $50 from us. But our starting commission with TA is 115%. You will get your $50 back real quick. Plus million dollar advice and training.

Come toward the light.