Greener Grass?

Valstand

Valstand

New Member
2
Hello all,

I'll try to keep it brief. About 9 months ago I decided to make the move and get into "working for myself"...at least that's what I was led to believe. I worked managing bank/credit union/financial institution money for almost 2 decades but I was a road warrior covering multiple states and only home 1 day a week (not counting weekends). Given the stress on the growing family, I took a job as a business consultant for real estate agents. I loved the job for the most part, but it was like herding squirrels and talking about the financial aspects of working for yourself was not allowed - owners were afraid it would scare potential recruits off (long story). More importantly, I fell in love with the fact that the agents were masters of their own destiny so-to-speak. Knowing how much the average American struggles regarding any sort of financial plan, I thought "Hey, I have a business/analytical background and a high give-a-crap factor about people, what about making a difference in their lives via something in financial services?" - I love real estate as an investment but have NO desire to be a Realtor! Long story short, I talked to a friend with 20 years of industry experience at wire houses, and decided to join one of the Mother Mutuals. I VERY quickly learned that the idea of "working for myself" was not a reality ("Besides, why would you want to work for yourself - we have so much brand strength! Need a refill on your Kool-Aid?"). I won't drag this on with any more drama or details, suffice it to say that we're not a match (I like permanent products as much as the next guy but Christ, not everyone needs $12,000 AP whole life!).

I know there's a bit of a division between the FE crowd and the MP crowd, but I'm still looking at them both right now. Here's my question - has anyone gone from a "Mother Mutual" to working the FE/MP line? Our current idea of MP is way over-priced term (compared to many quotes I've seen) and FE is non-existent (that's too blue collar, we cater to a more affluent group I'm told). As info, I have my L&H in a few states (fixed and variable) with my Series 7 and 63...my prospecting has been all cold leads/call since I'm a transplant to this state and have no family in the area (so I'm not afraid to work with strangers) but unfortunately I'm not making much headway by calling names out of a phone book.

I really want to work in this field because I really do want to help folks, but after 9 months the time/funds are running out at home and I need to get some income coming in soon. Given all the success stories I see on here regarding FE and MP, I'm really interested in getting some traction there so I'd appreciate any feedback. TIA!
 
The luxury you have at this point is that you get to choose. You get to decide what type of clientele you want to approach as well as when and how you want to do business. Personally, I'm partial to the FE market, so take that what it is worth.

Things I like about selling Final Expense

1. Love the clientele (lower income, down to earth, really need your help, generally greatful for your service)
2. Easy sales process - one call close, instant underwriting decision - typically get paid within 48 hours with most companies. Products are easy to understand and articulate to the client.
3. Don't need to work evenings (most people are home all day and not working), unlike MP where you need to see most people when they get off work in the evening
4. Leads are generally more cost-effective than MP in my experience
5. Recession proof (There's always going to be low income seniors)

Don't get me wrong, mortgage protection products can be very helpful, I still run into these cases very often through referrals and beneficiaries, but FE is my bread and butter. 10,000 people are going to turn 65 every day for the next 12-15 years. I like my chances.
 
Thanks, Cole! I'm a bit of a data nerd, and this quote is one of the major reasons I'm interested in FE - "10,000 people are going to turn 65 every day for the next 12-15 years..."
 
Valstand said:
I'll try to keep it brief.
Click to expand...

That was brief?

Valstand said:
Here's my question - has anyone gone from a "Mother Mutual" to working the FE/MP line? Our current idea of MP is way over-priced term (compared to many quotes I've seen) and FE is non-existent (that's too blue collar, we cater to a more affluent group I'm told)
Click to expand...

I left a large Mutual. I write term' I used to call it by many other names including mortgage protection. I also write SIWL / FE, my average FE client is not poor.

This is your business. You can work it anyway you choose.
 
Life Hawk said:
Sale what a client can afford... that way it stays sold.
Click to expand...

That brings up a question. You see post that say the average FE sale is in the $50-$60 range. Then you see post that this guy or that guy pushes $200mo premiums. Now we all get the $400mo FE deals from time to time. But I doubt they are consistently off of DM. If DM is king and everyone filters to poor people how is anyone writing / offering $200mo premiums to poor people?

Just a question. I am not a FE guy or do DM.
 
WinoBlues said:
That brings up a question. You see post that say the average FE sale is in the $50-$60 range. Then you see post that this guy or that guy pushes $200mo premiums. Now we all get the $400mo FE deals from time to time. But I doubt they are consistently off of DM. If DM is king and everyone filters to poor people how is anyone writing / offering $200mo premiums to poor people?

Just a question. I am not a FE guy or do DM.
Click to expand...

Not often... and that should be expected... anything else is fool hearty.

On average of about $450 to $600 of AP is a good starting business model. That's why FYC and resids are king. "Dost thou know they commission?"

I more often than not, talk my prospects back to a reasonable number that I sense they can afford... there are factors for higher premium... but you better have a good judge of your clients finances before you pull the gun on something that could hold up future commissions when you realize your up sale just went NSF or was replaced by a much less expensive/ less coverage sale.

I ALWAYS ask, "Mildred, just a round figure, about how much do you make on SSI or SSD each month?" (Yes, rousemark, I used Mildred again. :skeptical:...I like Mildred, and she likes me. :laugh:)

Get a picture of the financial landscape of your client... you are supposed to be a financial professional after all, and who knows, there might be some $ sitting somewhere just itching to be put to use.

The short of it is, you need to ask questions... if you don't, someone like me will come along and ask those questions... and just might steal your lunch. :yes:
 
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