I’m currently in the training for AIL after having gotten my state life and health insurance licenses. I initially went along with this job because I was in a bad financial situation and I was drawn in by the promise of making good money by working hard. My background is in marketing so I’m not familiar with a lot of the insurance industry practices. As I’m going through the process and learning about the company , the more I feel it’s a pyramid scheme or a bad situation to get into. The training has not been paid as of yet. I had to pay for the majority of the licensing fees. The pay is 100% commission (are all insurance companies like this?) I read online that there may be chargebacks if a policy you write is cancelled within a year. What happens if I choose to leave the company within a year? One of the big problems is that the management does not seem to be very transparent with the policies. A lot of reviews on indeed and Glassdoor indicate that there is a large amount of turnover, which would indicate that something may be wrong. I’ve began to think that I was sucked into something that is too good to be true. I don’t have an issue with working hard, but I want to know what I’m getting into. What should I do with life and health insurance licenses I have now? How can I make the most use of them? Thank you for your help and advice in advance.
Help after American Income Life
- Thread starter Kk919
- Start date
- 3,989
Well AIL is a hard place to make it, but if your half out before you even get started your sure to fail. What’s your full time gig?
- 2,261
All insurance sales have chargebacks because most insurance sales commissions are based on expected premium. You can offset this by only accepting commission on AS EARNED premium, meaning you won't be paid 70% of first years premium up front. Instead you will make you income of your percentage of what the customer has paid. You certainly get hit with a chargeback if the customer quits the policy and you also would be hit with a chargeback if you leave before the policy has been in place for a certain period of time.
The turnover in insurance companies is great because many people throw in the towel before they learn how the business works, what works for them, how to generate additional business from your sales, or the dream of easy money becomes the reality of hard work. You can make thousands of dollars from just 1 sale, you just need to find that person and sell them. You more likely make small amounts from numerous sales and make enough to live on while you learn the business.
The turnover in insurance companies is great because many people throw in the towel before they learn how the business works, what works for them, how to generate additional business from your sales, or the dream of easy money becomes the reality of hard work. You can make thousands of dollars from just 1 sale, you just need to find that person and sell them. You more likely make small amounts from numerous sales and make enough to live on while you learn the business.
- 5,932
I have 2 IMO's that are in NC that have Career Agent Programs and offer fresh leads, aged leads, training and support, incentives, bonuses and more . . .
You can get in a car and go see what it's all about.
60% to start with either. Advance with volume. Move to Broker at any time.
Full Commissions on Medicare Advantage.
# is in my signature if you'd like more info.
Tom
sherriemccarty
New Member
- 2
All insurance companies have chargebacks the good thing about ail is your bonus is non chargeback able which you can get up to 20% bonus and they won’t take the whole charge back out of your paycheck it will never be more than 50% of your next check . Not to mention of course they have you recruit it’s an insurance agency. Most insurance companies recruit , most real estate companies have you recruit too if you want to build an agency , same structure plus residual .
The good thing is AIL won’t stop you from going to another company if you have chargebacks if you were crazy enough to want to leave !
The good thing is AIL won’t stop you from going to another company if you have chargebacks if you were crazy enough to want to leave !
Last edited:
- 3,989
False
sherriemccarty
New Member
- 2
if you work for a company like State Farm and work on an hourly base or salary you’re right probably not but if the insurance company offers over rides and bonus then yes recruiting involved . But it’s always a red flag if you can only make money if you recruit and not solely off sales .
tikibarrister
Guru
- 471
I think you need to distinguish between how the insurance industry works and this particular opportunity. Let's discuss the former.
There are (generally) two kinds of insurance sales positions:
- Independent Agent: you get all the commissions and yearly renewals. Typically a 100% commission system. Chargebacks have already been discussed - essentially some agents want cash immediately so they'll take a 9-month payout at time of sale and bear the risk of the client quitting and they have to pay back the advanced commissions. Some prefer to only earn as the customer pays. In the indy model, you probably have to pay for leads as well but it depends on your relationship with your IMO. In general, if you pay for leads, you get a higher commission amount. Most pay for leads.
What is an IMO? Insurance Marketing Organization. Starting out, you're not worth an insurance company's time. So they contract with bigger players who then contract with you. The IMO contracts at some amount (making up a number: 125% of first year's premium in the Final Expense world) and you are contracted at 100% and they keep the difference.
The IMO world can seem like a pyramid scheme...it depends. For example, if you sign up with an IMO, buy leads, sell insurance, etc. it really isn't, even though you have an "upline" in the sense that you're contracting through the IMO. Where it goes wrong is when you sign up and there is immediate pressure to recruit your own agents, etc. Tons of successful agents never recruit. Some IMOs have very flat pyramids - the insurance company, the IMO, and their agents and that's it.
- Working for someone. In this case, you typically get a salary but are giving up the lion's share of commissions and probably renewals. Often the captives (State Farm, Allstate, or Farmer's) employ people like this but some indy agencies do as well.
So not talking about AIL specifically but answering your questions:
- Paying for licensing fees: depends but not uncommon. These aren't really that much, are they? A licensing course for life & health, testing fees, and then registration with your state shouldn't be more than a few hundred. The state registration fee is the biggest variable - $10-75 is the typical range.
- Pyramid scheme: if they're emphasizing recruiting, then yes it probably is.
- 100% commission: common for indy and not uncommon for captives. Going into insurance sales is really starting a business rather than getting a job.
- Leads: you need to ask about this. If you're getting free leads, you're trading off something - probably commission percentage and maybe renewals.
- Turnover: yes, very high because it's a sink-or-swim business.
- Your licenses: they're yours, and they go with you. They belong to you.
There are (generally) two kinds of insurance sales positions:
- Independent Agent: you get all the commissions and yearly renewals. Typically a 100% commission system. Chargebacks have already been discussed - essentially some agents want cash immediately so they'll take a 9-month payout at time of sale and bear the risk of the client quitting and they have to pay back the advanced commissions. Some prefer to only earn as the customer pays. In the indy model, you probably have to pay for leads as well but it depends on your relationship with your IMO. In general, if you pay for leads, you get a higher commission amount. Most pay for leads.
What is an IMO? Insurance Marketing Organization. Starting out, you're not worth an insurance company's time. So they contract with bigger players who then contract with you. The IMO contracts at some amount (making up a number: 125% of first year's premium in the Final Expense world) and you are contracted at 100% and they keep the difference.
The IMO world can seem like a pyramid scheme...it depends. For example, if you sign up with an IMO, buy leads, sell insurance, etc. it really isn't, even though you have an "upline" in the sense that you're contracting through the IMO. Where it goes wrong is when you sign up and there is immediate pressure to recruit your own agents, etc. Tons of successful agents never recruit. Some IMOs have very flat pyramids - the insurance company, the IMO, and their agents and that's it.
- Working for someone. In this case, you typically get a salary but are giving up the lion's share of commissions and probably renewals. Often the captives (State Farm, Allstate, or Farmer's) employ people like this but some indy agencies do as well.
So not talking about AIL specifically but answering your questions:
- Paying for licensing fees: depends but not uncommon. These aren't really that much, are they? A licensing course for life & health, testing fees, and then registration with your state shouldn't be more than a few hundred. The state registration fee is the biggest variable - $10-75 is the typical range.
- Pyramid scheme: if they're emphasizing recruiting, then yes it probably is.
- 100% commission: common for indy and not uncommon for captives. Going into insurance sales is really starting a business rather than getting a job.
- Leads: you need to ask about this. If you're getting free leads, you're trading off something - probably commission percentage and maybe renewals.
- Turnover: yes, very high because it's a sink-or-swim business.
- Your licenses: they're yours, and they go with you. They belong to you.
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