Liberty National Now Has a Broker Side?

[magagent]

I got an email blast from an agency in South Carolina offering a LNL contract at 110%?? LNL will advance on submission, doesn't take chargeback out of your advance, has great prices and, pay high commissions quickly... What??

I am not interested in doing any business that pays on submission or a torchmark company, besides I thought LNL was as captive as they come..

 

[scagnt83]

Its not a company that I would really sell, but I dont think that LNL is captive anymore... not totally sure though. But I would be leary of any company paying over 95%.

 

[dgoldenz]

Its not a company that I would really sell, but I dont think that LNL is captive anymore... not totally sure though. But I would be leary of any company paying over 95%.

Why would you be leary of a company paying over 95%?

 

[WinoBlues]

Why would you be leary of a company paying over 95%?

I would be leary of a company that pays less than 95%

 

[scagnt83]

Why would you be leary of a company paying over 95%?

Well...i probably should have said over 100%. But the numbers just dont work out on a long term basis on a business model level, which therefore jeopardizes the financial stability of the company.
Its like an annuity company offering 15% commision on a product when most of the industry is offering 3%-7%. When a company is that desperate for business do you really feel safe putting a client with them??

I mostly sell UL these days....am I so out of touch with the term side of the business? Are most A+ rated companies paying over 95% fyc on term??

 

[dgoldenz]

Well...i probably should have said over 100%. But the numbers just dont work out on a long term basis on a business model level, which therefore jeopardizes the financial stability of the company.
Its like an annuity company offering 15% commision on a product when most of the industry is offering 3%-7%. When a company is that desperate for business do you really feel safe putting a client with them??

I mostly sell UL these days....am I so out of touch with the term side of the business? Are most A+ rated companies paying over 95% fyc on term??

It will always depend on your contract. If you have a high level contract is probably somewhere in the 100-125% range for UL. One of the guys who runs a GA would have a better idea. The brokerage company we use takes a decent chunk of our commissions and we still get 95-110%

 

[jdeasy]

It doesn't matter if the agent is getting 70%, 80%, 90% or 110%, somebody is getting 125%.

 

[souldeux]

It doesn't matter if the agent is getting 70%, 80%, 90% or 110%, somebody is getting 125%.

And someone above them is generally getting 145% - 150%. Ever hear the truism that insurance companies live on lapses? Life policies are extremely front-loaded in terms of acquisition cost.

 

[dgoldenz]

And someone above them is generally getting 145% - 150%. Ever hear the truism that insurance companies live on lapses? Life policies are extremely front-loaded in terms of acquisition cost.

x2

If you do all of your own work and have a high production level you could probably get 110-125% yourself. If you want/need the help of a GA to shop your cases and do the back-end work, 90-110% is more realistic with good production.

 

[dlj2626]

United American is a Torchmark company and they offer a broker contract. From what I know United American was bought out by Liberty National and those offices are suppose to soon become Liberty National. Also, Liberty National is moving their headquarters to McKinney, Texas soon. So I would not be surprised if Libert National starts a broker contract.

The only product I would consider selling for Liberty National if I was independent is their modified life. Its issue ages are 0-80. Three year waiting period and paid up in 20 years. Most graded or modified policies seem to start at age 40 to 45 from what I have seen. Their group term is not bad either on payroll deduction because it stays level and it is portable. Their whole life is pretty expensive and their term is one of the higest out there that I have seen.