License being processed/IMO Commission rates/Med Sup - FE

[boomshack]

Been lurking this forum and I have learned a lot on here is the past week that I should have already figured out before starting the process of getting my licenses.

Life and Health exams are passed. Licenses are in process.

Here is what I have done before knowing the information that I have found on this forum:

I started the process with an IMO (a few local offices, senior market, Med Sup, FE, etc.) that already paid me part of my pre-licensing course fee, and that will pay the rest--including the license fees after being appointed.

1099 contractor, commission only, a program to have income while training.

I have been sent the agent contract (which is shorter than I expected). I have NOT signed it yet. It doesn't mention anything about open release or anything about releases once the contract is terminated. It has a non-compete.

I have the commission grid--number of carriers are about 40 or so (Aetna, Americo, Gerber, Lincoln Heritage, MoO, TransA, Thrivent, UoO, plus the many carriers I've seen mentioned on this forum).

The med sup commission rates vary from different carriers from about 12% to 16% year one for 65 to 80 years old. 2-5 years renewal.

An example FE commission rate is year one: 70% for 60-80 years old.

Leads covered at no cost (factored into the commissions, right?) so the agent can focus on sales, don't advise selling to friends and family, will have the new agent shadow existing agents and with a sales manager, E-contracting. I have been told to continue working my job if I can part-time during the first month of the training process. Also have been told their successful agents work a lot on referrals.

Contracting, licensing, and marketing staff.

As someone that is a greenhorn, anything wrong you see with this? Good way to cut my teeth even though the commissions are lower, yet I will have solid support and training?

 

[goillini52]

Been lurking this forum and I have learned a lot on here is the past week that I should have already figured out before starting the process of getting my licenses.

Life and Health exams are passed. Licenses are in process.

Here is what I have done before knowing the information that I have found on this forum:

I started the process with an IMO (a few local offices, senior market, Med Sup, FE, etc.) that already paid me part of my pre-licensing course fee, and that will pay the rest--including the license fees after being appointed.

1099 contractor, commission only, a program to have income while training.

I have been sent the agent contract (which is shorter than I expected). I have NOT signed it yet. It doesn't mention anything about open release or anything about releases once the contract is terminated. It has a non-compete.

I have the commission grid--number of carriers are about 40 or so (Aetna, Americo, Gerber, Lincoln Heritage, MoO, TransA, Thrivent, UoO, plus the many carriers I've seen mentioned on this forum).

The med sup commission rates vary from different carriers from about 12% to 16% year one for 65 to 80 years old. 2-5 years renewal.

An example FE commission rate is year one: 70% for 60-80 years old.

Leads covered at no cost (factored into the commissions, right?) so the agent can focus on sales, don't advise selling to friends and family, will have the new agent shadow existing agents and with a sales manager, E-contracting. I have been told to continue working my job if I can part-time during the first month of the training process. Also have been told their successful agents work a lot on referrals.

Contracting, licensing, and marketing staff.

As someone that is a greenhorn, anything wrong you see with this? Good way to cut my teeth even though the commissions are lower, yet I will have solid support and training?

You can easily get 21-22% on Medicare Supplements and 110-120% on Final Expense. But you wouldn't get your leads paid for. You also wouldn't get your licensing paid for or training pay. From what you've posted, it sounds like a good deal for a new agent to me.

When you get free leads and stuff, you diminish your risk, so you give up some commissions and freedom. As far as the release, you'll have to ask them about it, but I can understand why after investing a lot of money in you, they might not be so quick to give you a release. Good luck

 

[boomshack]

Thanks for the response.

 

[HoosierLife]

What kind of leads? If it’s fresh direct mail that’s exclusive to you, that’s an ok deal.

We have a Mortgage Protection downline that offers 60% and not only free mortgage protection direct mail, but Pre-set appointments off those leads.

You can always make more if you buy you’re own leads. Like you’re mamma always said, “Nothing in life’s free!”

 

[boomshack]

They weren't really specific about the leads which has been making me think. Their literature says about 1,000 leads a year in your area you work. They do not guarantee exclusivity of territory in the contract. They actually never mentioned by word of mouth the "earn while you train" program even though it is mentioned as a program. I was told to keep my job if I can part-time and was also explained that some agents work other jobs.

I've been into the main office, very nice. Met most of the staff.

I just don't think I have gotten enough details from them to continue going with this.

 

[Travis Price]

Speaking for myself, I would pass. I’m suspicious of anyone that offers free leads as an IMO in exchange for commission reduction. You tend to either get a cold call list OR leads that are recycled so much they’re basically a burnt out cold call list.

In 2005-2006, I went through a host of different companies, like UA, NAA, and Senior benefit services (they did Med Advantage preset appointments) I was not a fan.

All I want is the best Comm level I can get and a release. If I get CSG for free (like I do with New Horizon) or some helpful discounts, great. Otherwise, I start getting suspicious.

 

[boomshack]

Speaking for myself, I would pass. I’m suspicious of anyone that offers free leads as an IMO in exchange for commission reduction. You tend to either get a cold call list OR leads that are recycled so much they’re basically a burnt out cold call list.

In 2005-2006, I went through a host of different companies, like UA, NAA, and Senior benefit services (they did Med Advantage preset appointments) I was not a fan.

All I want is the best Comm level I can get and a release. If I get CSG for free (like I do with New Horizon) or some helpful discounts, great. Otherwise, I start getting suspicious.

Thanks for the advice. I already gave it a pass.

 

[boomshack]

The next possibility for myself is perhaps a position as a career agent with Baltimore Life.

Would anyone verify that as a prudent option?

I've read a lot of negatives about Banker's Life ? (they are recruiting at a local community college)

I know most of you are pro-independent, but my lack of experience realistically tells me that going independent this early may doom me to be one of the many failures in this business.

 

[HoosierLife]

The next possibility for myself is perhaps a position as a career agent with Baltimore Life.

Would anyone verify that as a prudent option?

I've read a lot of negatives about Banker's Life ? (they are recruiting at a local community college)

I know most of you are pro-independent, but my lack of experience realistically tells me that going independent this early may doom me to be one of the many failures in this business.

Are you self driven? Coachable? Have good money management skills? Not completely broke? Willing to work hard with nobody breathing down your neck?

Go Indy.

 

[Travis Price]

Are you self driven? Coachable? Have good money management skills? Not completely broke? Willing to work hard with nobody breathing down your neck?

Go Indy.

I agree. Here’s the deal, going Indy doesn’t mean going alone. Also, I think you’re too broad in product offerings. Pick 1 or 2. Med Supps and Med Advantage/Part D are more than enough main products to keep you busy.

You can add a few aux products, like Hospital Indemnity and DVH and have a good mix that can keep you busy.

That’s the difference between Indy and Captive. Captive will tell you what to sell, which can be overwhelming at first. On top of what tends to be empty promises.

When I did my first foray into Insurance, I was a career agent for 1 company, Monumental Life. They did FE with a debit route. I don’t like FE to begin with, because the clientele can live in shifty parts of town. Image carrying 1k in cash around that sort of area.

All for 30-40k a year. Never again.