Met With Guardian Offered Vested New Agent Contract, Good?

[StrictlyIndependent]

Hi,

I'm new to the insurance world, previously in phone sales for 10 yrs. Today I was offered a new agent contract that last's 4 yrs at an excelerated payout and vested from day one.
I receive 80% payout first year, 18% FY residuals, 75%payout second yr and 17% residual. After 4 years my payout depends on production and my residuals range from 10%-2%.

Is this a good deal?

Thank you

 

[StrictlyIndependent]

Anyone know if this is a good deal? I have a second interview in a few days?

 

[xrac]

The Guardian FR contract is a good deal as long as one stays with Guardian. Their broker dealer (Park Avenue Securities) is disliked by most people I have talked to who have been with Guardian.

 

[BNTRS]

Hi,

I'm new to the insurance world, previously in phone sales for 10 yrs. Today I was offered a new agent contract that last's 4 yrs at an excelerated payout and vested from day one.
I receive 80% payout first year, 18% FY residuals, 75%payout second yr and 17% residual. After 4 years my payout depends on production and my residuals range from 10%-2%.

Is this a good deal?

Thank you

Guardian's FR contract is a really nice contract, but there are some caveats to be aware of. As you've described it you are not 100% accurate on what the payouts will be, and you will not be 100% vested on renewals (I think that's what you are referring to).

I happen to know a lot about this contract and we can talk if you'd like. I think it's a great contract.

As has been mentioned, the broker dealer is the ugly side of the equation. For an insurance producer in life, di, and LTC it's a great contract. Major equity producers need not apply.

What office are you talking to?

 

[StrictlyIndependent]

I asked what happens if I leave after a few years and they said I'm vested from day one and will still receive my renewals at standard rates. I'm in NY. Do you guys know what the pitfalls are for this FR contract and why is PAS so disliked?

Thanks for the advice

 

[BNTRS]

I asked what happens if I leave after a few years and they said I'm vested from day one and will still receive my renewals at standard rates. I'm in NY. Do you guys know what the pitfalls are for this FR contract and why is PAS so disliked?

Thanks for the advice

You are not vested from day one. The FR contract has a very long vesting schedule, but within a few years from retirement you will be vested. The amazing thing about Guardian is that renewals are infinite so long as the business remains on the books including in retirement. They also pay extremely high renewals.

PAS is a fee ridden B/D that doesn't pay the most generous commissions. Actually the GA sets the percentage of GDC you'll receive, but the agencies themselves don't receive a great GDC cut. PAS is also a tad too full tilt on regulation.

Where in NY? I actually know a lot of people at Guardian in NY. Which agency are you talking to?

 

[StrictlyIndependent]

Hmmm...I'm going to ask again about the renewals. I remember them saying if I leave to go to another company I can take my clients and still receive renewals as long as the insurance stays on the books.

I vest near retirement? How long is that?


Thanks

 

[BNTRS]

It is a great contract and a great company. However, here are the things they won't mention that you should probably know.

Renewals are great but you'll only receive them if you validate the salary that you get paid under the FR plan. Meaning, if you miss a month worth of salar b/c you did not validate and you never make this up during the year, you'll never get paid the renewal in that year. Probably not a big deal since the salary will be set rather low.

The contract does prevent you from coming to a point in your career where you've decided you'll just collect renewals. However, you can come to a point where personal production is low and the majority of your earnings come from renewals--GA's hate this though.

DI renewals are nice, but there is a bit of a hurdle you have to pass before you'll get paid the renewals.

The contract is very generous to people who are looking to swing for the fences. It's also very nice to average agents.

I don't want to dissuade you from the Guardian with this information--far from it. I'd rather this information act as a motivator to help you not fall into some traps that will leave you frustrated.

If you want to be in the business owner or professionals market, there are few companies that will be able to help you perform well here; Guardian is definitely one of them.

Again, if you tell me which agency you are talking to I can possibly give you some background info on them. I know at least one person at every one of them in NY.

 

[xrac]

It is a great contract and a great company. However, here are the things they won't mention that you should probably know.

Renewals are great but you'll only receive them if you validate the salary that you get paid under the FR plan. Meaning, if you miss a month worth of salar b/c you did not validate and you never make this up during the year, you'll never get paid the renewal in that year. Probably not a big deal since the salary will be set rather low.

The contract does prevent you from coming to a point in your career where you've decided you'll just collect renewals. However, you can come to a point where personal production is low and the majority of your earnings come from renewals--GA's hate this though.

DI renewals are nice, but there is a bit of a hurdle you have to pass before you'll get paid the renewals.

The contract is very generous to people who are looking to swing for the fences. It's also very nice to average agents.

I don't want to dissuade you from the Guardian with this information--far from it. I'd rather this information act as a motivator to help you not fall into some traps that will leave you frustrated.

If you want to be in the business owner or professionals market, there are few companies that will be able to help you perform well here; Guardian is definitely one of them.

Again, if you tell me which agency you are talking to I can possibly give you some background info on them. I know at least one person at every one of them in NY.

BNTRS, were you or are you a Guardian FR?

 

[BNTRS]

BNTRS, were you or are you a Guardian FR?

Hmm, I do seem to know an awful lot about them...