Metlife Vs. Ia

[DEGRI]

Okay, this post is sure to spark some debate, and I am posting it to validate/negate what I feel about new insurance opportunities.

I am leaving my job to get back into insurance sales. I have saved 4 months' cushion so that, if I didn't make one cent," I could pay all of my bills comfortably. I made this savings knowing that the day would come when I would want to leave my current administrative position and go into insurance full-time.

I have my L,H,P&C licenses, E&O, etc.

Opportunity A
I have an opportunity to work with a broker as an independent producer, with no overhead expenses, for 50% commish.

Opprtunity B
I have an opportunity to work at MetLife as a P&C sales person, with a stipend during a 13-week paid training, which will be cut in half at the end of the training. Health Benefits, 401k, etc. would still applyl.

Obviously, there are pros and cons to both scenarios A & B. Being in a primarily water-locked state, where MetLife won't write homeonwers, that primarily leaves me auto insurance...and their rates are average. But Brand recognition goes along way in this state.

I know where I am leaning, which is Option A (risky). Option B (calculated risk) dangles the stipend, benefits, etc., but my portfolio would be limited.

I am re-entering the world of selling insurance after a 4-year break due to a disability on my husband's behalf. That situatiion is now resolved.

What to do?

This is primarily thinking aloud, and I appreciate your humoring my need to "externalize" my quandary.

DEGRI

 

[Norwayguy]

I am not a P&C agent so take this for what it is worth...Yes the stipend will help but is that the only reason you are even considering a position where you will only be able to sell car insurance without a homeowners to bundle it with?

Question if Metlife doesn't want the Homeowners risk do they offer another carrier you can write it with? Would you be able to sell other products as well or would it just be auto?

 

[DEGRI]

Hi, Peter:

That's my point. Everyone says "go with the stipend and get P&C experience" (I am a former health, life agent). To go with the stipend to just leave when I have experience is dishonest in my opinion. I don't want to be tied to a sales manager all day. I say, I am going with an independent agency to learn P&C and have free office space, office equipment, etc (saves me a TON of overhead), and it is one of the most reputable firms in my state. I have been offered a 50/50 split with the owner, and whatever health, accident, critical illness, life policies I write are all mine.

I am going with Scenario A; however, I wanted to piont out the somewhat ridiculousness of the statement of "go with a stipend and get experience." I bust my arse, always have and always will, so I am going with the mantra "Don't tell me it's IMpossible until AFTER I have already done it." (P. Lontos). I will call the carriers night and day if I have to until I learn this stuff myself. But my broker friend is willing to teach me the ropes and handle any commercial business that results as well (I am not licensed for commercial...yet). So, I shouldn't have to become a carrier telephone stalker.

I am not a P&C agent so take this for what it is worth...Yes the stipend will help but is that the only reason you are even considering a position where you will only be able to sell car insurance without a homeowners to bundle it with?

Question if Metlife doesn't want the Homeowners risk do they offer another carrier you can write it with? Would you be able to sell other products as well or would it just be auto?

 

[Norwayguy]

I can understand what people are saying about the stipend and learning....but from what you said you will only be really learning auto and only the metlife system which will probably be different than other carriers.

 

[Aram Fingal]

If you're going to be working directly for MetLife Auto & Home, you should have access to their general agency to place business that doesn't fit with Met with other carriers. They work like that in most states, so I'd be surprised if they didn't work that way in the state where their head office is. It's at a reduced commission but then you don't have to do much of the paperwork or servicing on that stuff.

You kind of get the best of both worlds.

 

[runawaykinms]

I am am newbie, so forgive me if this is a really dumb question.

However, isn't 50% commission under option A a little low? Are you talking about selling L&H as an independant? If that is the case, why couldn't you get a much higher commssion rate?

 

[TwiLight]

I am am newbie, so forgive me if this is a really dumb question.

However, isn't 50% commission under option A a little low? Are you talking about selling L&H as an independant? If that is the case, why couldn't you get a much higher commssion rate?

A 50/50 split is primarily refering to the P&C commissions. A standard split by most agencies with an agent that is experienced. The split is done in the agency management system that tracks the policy for servicing and tracks the payments and commission since it is paid to the agency.

As she has said, L, A&H will be hers to keep or at least will be a sub for the agency and paid direct by those carriers.

Good choice on your selection. Be sure to get an option to own your book of business since you are not getting a salary. This is vital to your long term goals and your ability to move to other agencies if things do not work out for you. And do not sign a non-compete as it pertains to your business. It only hurts you.

 

[DEGRI]

Runaway, Twilight is correct in her assumptions. I am getting 50/50 split with no office/overhead expenses (I will have cell phone, gas, mileage, etc, which I will write off on Schedule C). Also, I own all Life, Health, Accident policies 100% and have good commission structures with direct appointments with my carriers. IF the broker I am working with decides to go the L, H route, I will have her under me as a writing agent. What's good for the goose is good for the gander. If I were to leave the broker, we have agreed that I can take my book with me, but she knows I won't be leaving for a long time. Also, on auto and homeowners, I will take commission as earned so I don't get screwed in the long run.

 

[Norwayguy]

Runaway, Twilight is correct in her assumptions. I am getting 50/50 split with no office/overhead expenses (I will have cell phone, gas, mileage, etc, which I will write off on Schedule C). Also, I own all Life, Health, Accident policies 100% and have good commission structures with direct appointments with my carriers. IF the broker I am working with decides to go the L, H route, I will have her under me as a writing agent. What's good for the goose is good for the gander. If I were to leave the broker, we have agreed that I can take my book with me, but she knows I won't be leaving for a long time. Also, on auto and homeowners, I will take commission as earned so I don't get screwed in the long run.

Begin with the end in mind...Get that "agreement" in writing as well as any terms concerning you taking "your" book with you.

 

[TwiLight]

Begin with the end in mind...Get that "agreement" in writing as well as any terms concerning you taking "your" book with you.

Touché ...


Could not agree more.