From San Angelo, TX Looking at Becoming a Final Expense Agent

[Frank Stastny]

Newby - I'm not opposed to getting the license. In fact that is my plan. But, it's to my advantage that TX allows somewhat of a "trial period". I can check this out... see if I'm really cut out for the business before I spend a bunch of money on the regulatory compliance issues. I'm fresh off a failed business and I'm probably a bit over-cautious but from my perspective the TX system is to my benefit.

Here's the direct quote of the TX statue (pay particular attention to paragraph b):

SUBCHAPTER E. LIFE INSURANCE NOT EXCEEDING $25,000

Sec. 4054.201. LICENSE ISSUANCE; EXCEPTION. (a) The department shall issue a license to an individual applicant to act as an agent who writes only life insurance policies in an amount that does not exceed $25,000 on any one life on receipt of certification from a stipulated premium company, a statewide mutual assessment company, a local mutual aid association, or a local mutual burial association, that the applicant has:
(1) completed a course of study and instruction in compliance with this subchapter; and
(2) passed without aid a written examination administered by the insurer.
(b) A license is not required under this subchapter for an agent who, in the preceding calendar year, wrote policies that generated, in the aggregate, less than $20,000 in direct premium.

I do understand what you are saying and it sounds like a good plan. However, if you intend to begin selling FE insurance to seniors to see if you are really "cut out for the business" I think you are starting out with a very difficult product to sell.

Selling insurance isn't the same process with every kind of insurance that is available. I tried, for a very short time, prospecting for and selling FE insurance. I found it very much to my disliking. If that had been my first exposure to insurance I would have gotten out if it within a couple of months. I sell FE but it is always a cross sell to a new Med Supp client. I don't prospect for it.

My point is, if you don't think you are cut out to sell FE insurance after having tried it for a while, that doesn't mean that you won't enjoy and be successful selling other products. I don't think you are giving yourself a fair exposure to this business by doing a "trial" with a product that I perceive to be difficult and expensive to both prospect for and sell.

I am also licensed in TX and I'm not familiar with "spending a bunch of money on the regulatory compliance issues". My only cost was the licensing fee to get a life and health license. You, of course, will have to take the test and there will be a cost associated with that.

I'm not trying to change your mind, I just don't think you are giving yourself a fair chance to explore the many facets of this business to enable you to make a well-informed intelligent decision.

 

[Guest]

Frank,

Good points - I can't argue with any of them. I will reconsider my position. Perhaps I will be calling you sooner than I thought.

 

[Guest]

Anyone with Lincoln Heritage Advantage plan..Final Expense. Would like some feedback from anyone currently working and about commissions paid..

 

[Newby]

Anyone with Lincoln Heritage Advantage plan..Final Expense. Would like some feedback from anyone currently working and about commissions paid..

Lincoln Heritage has been very,very good to me.
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Frank,

Good points - I can't argue with any of them. I will reconsider my position. Perhaps I will be calling you sooner than I thought.

Selling FE without being licensed to sell the other things that fall into your lap (term life, Med sups, LTC, etc) would be like opening a McDonalds but not selling soda pops.

Here's your hamburger but you need to run down the street and get your soda at Hardees.

The cost of your lead opens many doors.

 

[Todd King]

Imhillis,

According to what I read in the statutes you posted, you still have to find a company that is willing to put you through training and certify that you have done so. If you're going through all of that, you might as well take one more step and take the test and get your license. I doubt very seriously that you're going to find a company that will do this for you. Even if you can, you're only likely to find a company in which you will end up captive. It's not the right move.

Newby is correct with the McDonalds analogy. You're half-assing it. IMO, stepping into this industry without a full commitment, you're already behind the power curve.

FE is not a difficult business, but one does need to be able to cross-sell; especially Med Supps. They go hand in hand.

 

[Stephen]

Lm, if you are considering direct response mail for FE keep in mind that your cost of business will outpace your licensing cost in about 2 weeks.

 

[jdeasy]

I do pretty well as an FE only agent. By "only" I mean I only prospect for FE. I do sell med sups as the situation presents itself and even a bit of term life.

Starting without your license is fool's gold. First, if you are going to do FE as your primary job, you have to have leads. That's takes money. You also need to be trained on how to work the leads or you will be smothered in lead costs with nothing to show for it. No one will invest that money in an unlicensed agent.

Get your license and then get with an organization that offers leads and training. You need both. You can check with EFES right in your state. Securus is another choice. I don't know how good their training is, but, I do know they recently hired the best FE agent in the world to manage their training and lead program.

But, if I were to start today knowing what I know today I would start with med sups. I would contract with Frank Statsny and become a student of how he sells and prospects. You could then add FE to your business as an easy cross sell to the med sups. If I wasn't as successful with FE as I am now I would be on the phone with Frank learning his deal instead of posting here.

This business is very rewarding, but it is also very hard work. Especially at first. There is a reason that something like 95% of agents wash out in their first year in this business.

If you are determined to get started with FE, get with a company or person that offers, training, leads and support and help with getting your license. Don't short circuit the deal. If you do that you are cheating the insurance company, your upline and, more importantly, yourself.

 

[jaystar]

I suggest you take a personal inventory and then write down the answers.

Such as: What is your selling experience? And how did you, or would you, succeed at a one call close. (I am not saying that FE or any insurance is a one call close, but you need to know how to close to make your time profitable.)
Can you survive for 6 months financially? With no income?

Are you comfortable making a relationship with businesses and those who have money, or would you rather make a sale, get paid and go on to the next.

You can also look at major insurance companies who will train you in financial planning & annuities? That might be better for a mature experienced business man. You have the age and experience to talk with successful business people and build a career working with a major company in life sales etc.

I speak as a person about your age. And the above are the things I did not do. But, if you feel you can struggle for a couple years and work like you've never worked before you can make the kind of money a few, only a few, of the people on the forum say they earn. I am not one of those.

Good Luck

 

[RockChalk]

Larry have you looked at Securus?

Why would you do that?