Life Insurance Plan? Need Advice Please!

[jkendt1989]

To give a little background, I just turned 24. I am currently working as an financial planner assistant. I am learning the stock market, client services, paper work along with life and health insurance. We mainly deal with annuities and securities.

I have the option to take a course and get the book along with taking the test to get my life and health insurance license.

On the side I was thinking about going after my own clients/referrals and signing them up for life insurance as an independent agent while I hold this other job. (flexible hours and I can take care of the needed things while at this job)

How does this plan sound? Is it possible and is there anything that I need to keep in mind?

Happy to have joined the forms

 

[NWBenefitProvider]

If you can learn the business under the guidance of someone there who is successful, then by all means go for it. If you have to self teach, I would probably still do it, but make sure that you are not going to put your current paycheck at risk while trying to learn the new lines. I'm sure there will be many cross selling opportunities for you, but more with the life as opposed to health.

I would suggest you find a successful health agent and try to work a good referral system. You send them health leads and they can refer you for life contracts. You'll make more $$ in less time with the life contracts and the health market is changing rapidly.

On the flipside, you are 24, don't need sleep, have endless energy, so what the heck, shoot for the moon. Best of luck and ask lots of questions here. Lots of well versed people happy to help.

 

[DHK]

Read your current employment contract &/or non-solicitation agreements.

By affiliating with a FINRA member firm, any outside sales activity may need to be reported to the B/D, let alone FINRA for disclosure. This is especially true if you are also registered with a Series 6/7/63/65/66, etc.

More than likely, your firm offers life insurance. Even though the advisor you are assisting isn't focusing in it, the fact that the B/D offers it means that you shouldn't be trying to do it "on the side". Not without compliance approval. And I'm willing to bet that they'll shoot that down real quick.

Get your licenses, study under your advisor and build up your skills. But don't do anything that could land you, your advisor or your B/D into any hot water.

Hopefully I'm just being overly paranoid. But with B/Ds and with FINRA, it's best to be paranoid.

 

[xrac]

......By affiliating with a FINRA member firm, any outside sales activity may need to be reported to the B/D, let alone FINRA for disclosure. This is especially true if you are also registered with a Series 6/7/63/65/66, etc..........

DHK is right except I would say that "by affiliating with a FINRA member firm, any outside sales activity MUST be reported to the B/D, let alone FINRA for disclosure".

 

[jkendt1989]

Read your current employment contract &/or non-solicitation agreements.

By affiliating with a FINRA member firm, any outside sales activity may need to be reported to the B/D, let alone FINRA for disclosure. This is especially true if you are also registered with a Series 6/7/63/65/66, etc.

More than likely, your firm offers life insurance. Even though the advisor you are assisting isn't focusing in it, the fact that the B/D offers it means that you shouldn't be trying to do it "on the side". Not without compliance approval. And I'm willing to bet that they'll shoot that down real quick.

Get your licenses, study under your advisor and build up your skills. But don't do anything that could land you, your advisor or your B/D into any hot water.

Hopefully I'm just being overly paranoid. But with B/Ds and with FINRA, it's best to be paranoid.

I don't think it's as big as deal. I talked with my employer and he is all for me going for this and even offered to pay for it. He has another office associate that does health insurance for him and on the side. I have been there 3 years and have never seen anything reported to FINRA. Only when we deal with securities and and checks for the brokerage accounts do they have to be run by our brokerage firm. I also do not have a contract.

I'll talk to him about this and make sure that we take the proper steps. Any idea's on doing life insurance and if this is a good thing to start looking towards doing in the future?
- - - - - - - - - - - - - - - - - -

If you can learn the business under the guidance of someone there who is successful, then by all means go for it. If you have to self teach, I would probably still do it, but make sure that you are not going to put your current paycheck at risk while trying to learn the new lines. I'm sure there will be many cross selling opportunities for you, but more with the life as opposed to health.

I would suggest you find a successful health agent and try to work a good referral system. You send them health leads and they can refer you for life contracts. You'll make more $$ in less time with the life contracts and the health market is changing rapidly.

On the flipside, you are 24, don't need sleep, have endless energy, so what the heck, shoot for the moon. Best of luck and ask lots of questions here. Lots of well versed people happy to help.

So you would recommend focusing on Life Insurance vs health insurance if I understand correctly? I am learning a lot and would like to get this license to continue to progress further. It would not hurt my current paycheck as my boss is very supportive of me getting this since it is more I can tech do for him and more of an understanding that I have. He has even talked about me getting my series 7 after I get this under my belt and a few gray hairs.

Is selling life insurance still a successful business? I have the drive and have idea's about how I can start getting clients.

 

[xrac]

......I have been there 3 years and have never seen anything reported to FINRA. Only when we deal with securities and and checks for the brokerage accounts do they have to be run by our brokerage firm...........

You do not understand. If you become a registered rep (6, 63, 7, 66, etc.) you HAVE to report ALL outside business activity to FINRA. When you become a RR FINRA owns you.

 

[Larry Tew]

I'm not sure I have all the minute details, but if you're NOT a registered rep yet and simply work for an agency that has RRs employed there, you may not have an issue.

On the other hand if you ARE or are GOING TO BE a RR, you MUST disclose ALL activities that you derive income from.

And if your agency is an OSJ (office of supervisory jurisdiction) and a Registered Principal of that agency is telling you to go ahead and don't worry about it, you better make sure you understand what you're being told.

 

[VolAgent]

From the sounds of it, the OP is not registered and is not going to become registered. So FINRA and the B/D are not her problems.

Now, I bet her boss is going to need to report her selling insurance from his office and his OSJ may or may not have something to say about it.

I have seen OSJs get nosy about other businesses in the same building, particularly when sharing space.

 

[LGilmore]

To the OP... You're not as of yet, licensed in anything, yes?

All the reporting comes "after" you license.

The other thing I am not sure your boss clearly understands what you want to do when licensed. You may need to have that conversation again. I get the impression he thinks you will be selling under his oversight, you've implied you want to sell under your "own". You need to have that conversation again.

I have a feeling things and opinions may change based on that conversation.

 

[Larry Tew]

From the sounds of it, the OP is not registered and is not going to become registered. So FINRA and the B/D are not her problems.

Now, I bet her boss is going to need to report her selling insurance from his office and his OSJ may or may not have something to say about it.

I have seen OSJs get nosy about other businesses in the same building, particularly when sharing space.

That's true, plus there are reporting requirements concerning non-registered employees if they have any contact with RR and client files, etc.