New York Life or Agency w/ Multiple Carriers

[Tortolini]

I worked for a supplemental insurance company for about 4 months and have decided to get into insurance lines that make more sense to me. I was happy with my earnings and I still see the need for supplemental insurance. However, I come across more people needing more permanent forms of insurance rather than trying to set up group enrollments thru employers. I've had an opportunity to be recruited with New York Life which seems to be a very limiting opportunity being its captive - but a reputable company as far as I can tell. My other opportunities are agency groups. I have one agency w/ 8 carriers and the other with 16. Of course, they require lead purchase etc. I'm curious what would be the best route for me to go. Have one appointment or get contracted with multiple carriers and wonder how it works out with these groups.


Thank You,

 

[DHK]

New York Life should have a brokerage division where you can submit cases that aren't going to work for a NYL policy. However, NYL does have "first right of refusal" - which means that you sell NYL unless NYL doesn't want the risk. So I wouldn't be thinking that you're going to be limited by the number of companies. Your job will be to represent NYL first though.

Generally, NYL should be teaching you a consultative approach so that people will WANT a NYL permanent policy. I think of it like this: "You can lead a horse to water, but you can't make him drink. But you can salt the horse's oats so that he'll WANT to drink." A quality consultative approach will help you to "salt your prospect's oats".

Groups with lots of other carriers and requiring lead purchases may not necessarily have you working the same way as a NYL agency would. Working leads will be working with people based on what they THINK they know about insurance and helping them to get coverage through your various carriers.

The problems are:
1) Well, notice how often I use the word "should". While NYL is a regimented agency system, that is no guarantee that you'll be successful at YOUR agency.
2) Just because you represent a lot of companies doesn't mean that you're growing as an agent or advisor.
3) You don't have enough of the big picture to make a fully informed decision yet.

 

[jcorr]

I'm a bit biased since I'm a NYL agent. There are definitely a LOT of benefits working with NYL. One of the things that DHK mentions is

Generally, NYL should be teaching you a consultative approach so that people will WANT a NYL permanent policy

and the good news is that they do. As far as being able use other carriers it depends on your contract. I'm considered an established agent which means I can broker. If you are brand new your options are more limited but your compensation is higher. They pay an enhanced commission that decreases over three years.

 

[FRJ]

I'm a bit biased since I'm a NYL agent. There are definitely a LOT of benefits working with NYL. One of the things that DHK mentions is

and the good news is that they do. As far as being able use other carriers it depends on your contract. I'm considered an established agent which means I can broker. If you are brand new your options are more limited but your compensation is higher. They pay an enhanced commission that decreases over three years.

I am currently considering becoming an established agent with NYL but have hesitations about the NYL W2 employee angle...I don't really care about the additional benefits since I basically already handle that myself and am wondering how the "employee" status actually works out in real life. Would love any input on this.

 

[jcorr]

I am currently considering becoming an established agent with NYL but have hesitations about the NYL W2 employee angle...I don't really care about the additional benefits since I basically already handle that myself and am wondering how the "employee" status actually works out in real life. Would love any input on this.

As an agent we aren't a W2 in the normal sense. We are a statutory employee. It's more like a cross between W2 and a independent contractor. NYL pays 1/2 of our SS just like a W2 employee but we write everything off as if we are an independent contractor. Statutory employee - Wikipedia

 

[adjusterjack]

I am but one voice crying in the wilderness but, having once worked as a captive W-2 agent for a very well known life company, I suggest not, for the reasons already enumerated.

 

[FRJ]

As an agent we aren't a W2 in the normal sense. We are a statutory employee. It's more like a cross between W2 and a independent contractor. NYL pays 1/2 of our SS just like a W2 employee but we write everything off as if we are an independent contractor. Statutory employee - Wikipedia

Thanks, that is actually helpful info but now it sounds like even more of a headache.

 

[jcorr]

Thanks, that is actually helpful info but now it sounds like even more of a headache.

I know this is a few years late but for anyone who is reading this, it hasn't been a headache at all. NYL takes out my part of SSI and Medicare, they pay their share and I put down all my expenses in my Schedule C and I file taxes like normal.