Going Independent, Companies with Little to No Production Requirement?

[InsuranceBrah]

Hey guys. So I'm a captive agent with Mass Mutual. I've been in the Biz For about a year now. However I'm finding with the amount of support I'm getting for the costs I'm paying I might as well work from home as an independent.

For the price I pay for my Cubical (That I don't use) + other services I could pay for my own E&O. While I'll admit I'm not the best salesman I'm confident that I know enough about the products to Sell with little to no supervision. Heck I'm doing it now. I just feel I'm heading in the wrong direction and becoming a career life agent/Broker when my goal is to be a Fee based advisor without my clients tied to any one company.

My problem is because I'm new to the business I would find difficulty contracting with larger companies that have large production requirements. Especially since I only want to sell Part time while I go to school for finance. Eventually I want my main business to be Fee based Financial planning. Obviously I can't hit quotas while taking classes full time.

In short my goals are
Sell Term and WL Life Insurance to supplement my income
Charge 25-50 basis points for Fee based advising, Mostly focusing on passive management. Until I feel I'm qualified to Charge 100BPs for active management.
Continue going to school.

In short I'm looking for some good companies with affordable term rates, Low Production Requirements, willing to contract with newer agents. I would also like a good Mutual company on that list. Google Seems to turn up nothing for me.

Thanks ahead of time for any advise you have to offer.

 

[Newby]

Hey guys. So I'm a captive agent with Mass Mutual. I've been in the Biz For about a year now. However I'm finding with the amount of support I'm getting for the costs I'm paying I might as well work from home as an independent.

For the price I pay for my Cubical (That I don't use) + other services I could pay for my own E&O. While I'll admit I'm not the best salesman I'm confident that I know enough about the products to Sell with little to no supervision. Heck I'm doing it now. I just feel I'm heading in the wrong direction and becoming a career life agent/Broker when my goal is to be a Fee based advisor without my clients tied to any one company.

My problem is because I'm new to the business I would find difficulty contracting with larger companies that have large production requirements. Especially since I only want to sell Part time while I go to school for finance. Eventually I want my main business to be Fee based Financial planning. Obviously I can't hit quotas while taking classes full time.

In short my goals are
Sell Term and WL Life Insurance to supplement my income
Charge 25-50 basis points for Fee based advising, Mostly focusing on passive management. Until I feel I'm qualified to Charge 100BPs for active management.
Continue going to school.

In short I'm looking for some good companies with affordable term rates, Low Production Requirements, willing to contract with newer agents. I would also like a good Mutual company on that list. Google Seems to turn up nothing for me.

Thanks ahead of time for any advise you have to offer.

I would look at Ohio National Life, Guardian Life and Lafayette Life and see if they are what you are looking for.

 

[pfg1]

For an indy, most companies that you could contract with don't have production requirements. That said, they don't want you to contract and not write business either.
Pick a couple that you want to use and contract. Then if the need arises for others, contract as you go.

 

[InsuranceBrah]

So I've decided to wait for the right time and bring up signing a broker contract with my firm and Use Mass as my main Mutual Carrier.

So if I pair that with a good Term Company, and guaranteed issue I'll be good with most cases.

Would it make sense to negotiate through a brokerage like crump or contact them directly?

Also what solutions would you recommend for CE. My firm currently handles that. I'd like a simple way to track my needs and schedule courses as needed. rather than wait till the last two weeks of the year and realize I need 18 CE credits.

 

[The Gimp]

The only requirements to get contracted are going to be NAPA Errors & Omissions Insurance For Insurance Agents and Agencies a copy of your license and a void check for your deposit account. You can complete AML ttraining (for free) with http://www.nailba.limra.com Most carriers will require proof of completion in order to sell cash value products. Just take a screen shot send it int to your BGA.

Other than that, you just need to choose a brokerage. If you would be interested in a platform that allow online applications a full back office support, PM me.

 

[TwiLight]

You Speak as one who has a Securities License. Are you looking for a B/D with a 6 or 7 or an RIA with a 65?

 

[DHK]

Hey guys. So I'm a captive agent with Mass Mutual. I've been in the Biz For about a year now. However I'm finding with the amount of support I'm getting for the costs I'm paying I might as well work from home as an independent.

For the price I pay for my Cubical (That I don't use) + other services I could pay for my own E&O. While I'll admit I'm not the best salesman I'm confident that I know enough about the products to Sell with little to no supervision. Heck I'm doing it now. I just feel I'm heading in the wrong direction and becoming a career life agent/Broker when my goal is to be a Fee based advisor without my clients tied to any one company.

My problem is because I'm new to the business I would find difficulty contracting with larger companies that have large production requirements. Especially since I only want to sell Part time while I go to school for finance. Eventually I want my main business to be Fee based Financial planning. Obviously I can't hit quotas while taking classes full time.

In short my goals are
Sell Term and WL Life Insurance to supplement my income
Charge 25-50 basis points for Fee based advising, Mostly focusing on passive management. Until I feel I'm qualified to Charge 100BPs for active management.
Continue going to school.

In short I'm looking for some good companies with affordable term rates, Low Production Requirements, willing to contract with newer agents. I would also like a good Mutual company on that list. Google Seems to turn up nothing for me.

Thanks ahead of time for any advise you have to offer.

Let me help you: School won't help you. If you want to be doing the active management of portfolios YOURSELF... then you need to start taking CFA courses.

However, if you want to be doing the portfolio management yourself, I wouldn't necessarily recommend being the asset gatherer as well. These are two different disciplines and they require different mentalities to do either of them well.

Also, you'd need to quit being an insurance agent and go to a wirehouse like Merrill Lynch, Morgan Stanley, UBS, Wells Fargo Advisors, or Edward Jones and learn how to GATHER assets (not manage them).

BTW, most of these firms offer both passive (strategic) and active (tactical) asset management platforms. But they aren't done by the advisor, but by 3rd party asset managers.

With a Series 65, you could eventually start your own RIA or affiliate with someone else's RIA as an IAR and still offer BOTH strategic and tactical asset management services.

Most life insurance companies don't require production requirements... for 'street level' compensation. If you want higher payouts, there will be minimums to achieve for those higher payouts.

Do you have securities production now? If you have $20,000+ in GDC, then I would recommend contacting Ohio National and ONESCO and switching over to them. Even without GDC, you could still get contracted with Ohio National for their life insurance products - assuming you aren't in a career agent state.

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So I've decided to wait for the right time and bring up signing a broker contract with my firm and Use Mass as my main Mutual Carrier.

So if I pair that with a good Term Company, and guaranteed issue I'll be good with most cases.

Would it make sense to negotiate through a brokerage like crump or contact them directly?

Also what solutions would you recommend for CE. My firm currently handles that. I'd like a simple way to track my needs and schedule courses as needed. rather than wait till the last two weeks of the year and realize I need 18 CE credits.

Mass IS a 'good term company'... as long as you are planning on staying in the business long enough to convert that term to a permanent product?

As far as CE... just pick a company. I prefer Sandi Kruise Insurance Continuing Education Training. Many on this forum like WebCE. There's also the forum sponsor with TestTeachers and they have a CE solution.

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While all that is being said... I would HIGHLY recommend that before you jump into the waters of just having a Series 65... that you spend a couple of years in a B/D.

Why? So you can experience the compliance hurdles and understand "what stupid is and what stupid does". Yes, the B/D side of the business is "over-regulated"... but if you can understand it and thrive in it... you'll do that much better as a fee-based investment advisor.

 

[walthamny]

DHK is correct. I work as a RIA and charge hourly fees or AUM fees. However, I worked almost 10 years for b/d. You have to learn the asset management business somewhere. There are also cost to run a RIA. E&O is higher, in my state you need to be bonded, you need to pay for planning software, you need to pay someone to custody assets, you need a lawyer here and there to register your business in different states and comply with new rules, etc. You can't break even charging 25 basis points unless you have a 10 million book or some other background. You will not find any mutual fund company that will allow you to do what you are suggesting. There are some RIA's that don't custody assets, and just do hourly planning and give trading instructions to clients to input themselves. You won't be able to market this sophisticated crowd while you are going school part time. I suggest you google for robo advisors and see how you can compete against them. Check out betterment or Vanguards own advisors platform.

 

[Foreverfury]

Get a good IMO, good comp, leads at cost. I usually get my folks an A, a B, and C, with C being a guaranteed issue. That type of starter kit should take care of 90% of your clients, and get you tapped into the carrier's incentives, bonuses, etc.

 

[WinoBlues]

Get a good IMO, good comp, leads at cost. I usually get my folks an A, a B, and C, with C being a guaranteed issue. That type of starter kit should take care of 90% of your clients, and get you tapped into the carrier's incentives, bonuses, etc.

C? - Do they get a first aid kit with that?