MoO and Mass..considering One Pays Out More

[insurancemet]

than the other, as a new agent, would you consider the one with higher commission or the one with better products...
....considering that they both had good trainings..
and if the one with good products...which as a new agent btwn the 2 is better to sell from in general. Thanks.

 

[VolAgent]

Who are you planning to sell to, Joe Six-Pack and Sally Homemaker, or the newest associate at Dewey, Cheatum and Howe and Dr. I. M. Douche the latest resident at Scared Heart Memorial?

Each company has its niche. Sell to people outside that niche and expect to be frustrated and/or fail.

 

[medsuptage]

Mostly what Vol said,

But are you talking going captive/career agent or independent?

If your independent you shouldn't be a company man.

Also products very differently, are you looking at med supps/ Life insurance/ both?

 

[DHK]

You could be at Mass and have a broker contract with Mutual of Omaha.

I don't remember if it could work the other way around...

Again, company doesn't matter until you define your market.

Don't put #2 ahead of #1. It doesn't work... and I can tell you from experience.

BTW, since I'm appointed with both... I personally prefer Mutual of Omaha.

Why?
1. The Winflex 6 system is easy to quote ALL products - including Business Overhead Expense. (Try doing that easily with Mass.)
2. It's a simple website to navigate. Mass seems to include every single possible thing they've ever published on their website. Too easy for a new person to "get lost".
3. They offer reasonable rates on Long Term Care insurance. I'm no expert on LTC, but in California, the costs for the policy are extremely high with Mass. It seems Mass may be pricing their policies for the corporate market as an executive bonus plan. That's not bad... if that's your market.
4. Medicare Supplement & Critical Illness policies are also offered.

The biggest thing you'd need to consider is that Mutual of Omaha only has 1 product designed for cash value accumulation - AccumUL. Depending on your previous training, can you handle having only ONE UL product to offer for a cash value product?

Yes, Mutual of Omaha offers smaller whole life products, but they're more of a "final expense" product and NOT designed to do anything more than that.

Oh, their term products are pretty good too. Combining a disability income rider with their term policy is a great combo. Of course, you'll need to learn to do the 'oral swab' for amounts greater than $250,000.

 

[insurancemet]

Thank you all for your feedback, it appears that they are both non captive, however, MoO would own your book, also Mass but with Mass after a certain amount 5yrs, I think it would be release to you.

Mass looks like they pay less than MoO. With Mass, as I understand they want you to go through their brokerage which looks like pays less than if you were to get a contract outside and of course Mass would take a percentage. I'm thinking MoO would work the same way since they also allow you to sell through their broker.

Looking at both payout structure, it looks like MoO pays out more...My market would be mostly young family looking to buy insurance for their family. But I would also like to do disability, medicare, etc..work with seniors...I know I have seen Frank Statsny say that to even be effective in Medicare you would need to be independent to offer different carriers.
But I think with either companies they would prefer that you first sell their products before selling other companies.

With MoO, would selling term and their smaller whole life be sufficient for young family vs selling them a big whole life policy.
I've also learned a little bit about the Leap concept...I guess you would not be able to do that with the MoO products. Do you guys believe in the leap concept. How about using whole life as a saving vehicles like for a college fund? What do you all think of that? Thanks. I know a lot of questions but whatever you can answer, truly appreciate it.

 

[DHK]

With all the questions YOU'RE asking... I wouldn't touch LEAP with a 10 foot pole. Maybe after 3 years of successful production. Keep in mind that LEAP will COST you about $2500/year - not including additional materials. Do a search on the forum for LEAP. You'll find many, many pages for you.

But let me help you with that - LEAP requires a very specific type of prospect to work with... to justify the costs that LEAP requires. The true market for LEAP concepts is maybe 1-2% of the population. That's 1-2 people out of 100 prospects. When you have more experience, you can focus your prospecting for that market and focus your learning there. Until then, I wouldn't go there. LEAP will take MANY meetings and has a STEEP learning curve. With all the questions you're asking here... you are NOT ready to PRONOUNCE "LEAP".

What both MoO and Mass aren't telling you: You can get a copy of your E&O certificate and write business with any company you want (aside from indexed products... broker dealers don't like them).

You don't have to go through their brokerage subsidy. But if you DID, you would receive production credits towards trips, clubs, etc.

When I was at Mass, I helped to write a large group health plan. We wrote the business through another health GA. I send them a copy of my E&O certificate and was appointed to sell the appropriate products. You can do that.

So, if you wanted to focus on the Medicare market... you can do that as a "semi-independent". You can get appointed with other carriers (using your E&O certificate) and offer the most appropriate product. You may have additional incentive to offer MoO... but you will always do what is best for the client, right?

 

[insurancemet]

Right definetely...want to do what's right for the client, that's why I don't want to be captive..that's why I liked the Mass and MoO because they do have a broker system.

With a copy of the E and O certificate, are you saying that you don't have to go through their broker for eg to get appointed with MoO if they have but can go to another broker for a higher contract..if so, is that something that needs to get approved by your manager or you can just go ahead and do it without approval...Thanks again, really appreciate you taking time to answer my questions.
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I read your comment again and you said you don't have to so that means no need for approval...

How do you get a copy of your E and O certificate?
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Thanks for pointing that out about leap.
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Also, just to clarify, are you saying best to go with Mass rather than MoO because more oppty to be able to offer the right products to your clients but MoO will probably pay more? ....Also, from the look of the MoO website, looks like they also sell direct to customers rather than just through their agents but Mass sells only through their agents right?

 

[DHK]

Being captive or not has nothing to do with doing "what's best for the client". You can always do what's best for the client, even if you only have 1 product line. Especially with life insurance.

Once you're appointed with whichever company, search on their website under E&O or ask your manager during your training. (Did I really have to tell you that?)

The reason I would advocate MoO more than Mass is because they have products geared more towards the middle market, compared to Mass. Unfortunately, you won't know what I know unless you are appointed to sell both... like I am.

MassMutual = white collar executives & business owners.

Mutual of Omaha = blue collar, middle income families and business owners.

Don't get fooled by % on the comp plan. If you have a 140% contract, but only sell 1 $1,000 FYC plan, you'll get paid $1,400. However, if you have a 50% comp, and you can sell 25 plans @ $500 each = $12,500 in premium x 50% = $6,250.

Which one makes you more money?

The better you choose your product line FOR YOUR MARKET... the more money you'll make REGARDLESS of %.
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As far as I know, Mass does not sell direct. Don't know about MoO.

 

[Kenno]

MoO sells the Whole Life Guarantee product (guaranteed issue) direct-to-consumer.

If you're target market is younger couples MoO has excellent term products, including simplified underwritten with (as mentioned above) a disability rider. That product also has return of premium, which is usually a huge selling feature when dealing with 20- and 30-something males who feel invinceable and don't readliy see a need for life insurance.

 

[DecisionMan]

If you get a brokerage contract with Mass you own all your own business. There is the base commission on the published schedule, then there is an "ERA" on top of that paid through the General Agency with whom you signed the brokerage contract.

The ERA pays an addition percentage so that the total comp ranges between 60-86% on their product line.

Guardian has a similar ERA schedule to their base commission rates.

So remain independent, get brokerage contracts with both MM and MoO.