Oh how Little I Know

[SuperWoman]

The longer I am in this business, the more I realize just how little I know.

Help me out...


My GA - has a "core compensation" list of carriers and their commissions. But....there are other products more appropriate to my clients. The GA is not real anxious to give me a full list of carriers and their commission rates.

Is this because they want me to sell a butt-load from the "core" list to make themselves bigger bonuses?

 

[rousemark]

The longer I am in this business, the more I realize just how little I know.

Help me out...


My GA - has a "core compensation" list of carriers and their commissions. But....there are other products more appropriate to my clients. The GA is not real anxious to give me a full list of carriers and their commission rates.

Is this because they want me to sell a butt-load from the "core" list to make themselves bigger bonuses?

Probably that and the fact they get a larger overwrite on the "core" companies.

 

[SuperWoman]

Probably that and the fact they get a larger overwrite on the "core" companies.

Thank you for your reply. Is there any benefit to me to consistenly use their core carriers? After I look at the best interest of the client, I look at the commission. Obviously I'm going to want to go with the higher one. They've given me very little feedback on their carriers. No training, of course. But it would be nice to know any added bene's.

 

[Tahoe Ray]

Thank you for your reply. Is there any benefit to me to consistenly use their core carriers? After I look at the best interest of the client, I look at the commission. Obviously I'm going to want to go with the higher one. They've given me very little feedback on their carriers. No training, of course. But it would be nice to know any added bene's.

What's your market and what carriers are your GA's "core"?

 

[Glen Shelton]

The longer I am in this business, the more I realize just how little I know.

Help me out...


My GA - has a "core compensation" list of carriers and their commissions. But....there are other products more appropriate to my clients. The GA is not real anxious to give me a full list of carriers and their commission rates.

Is this because they want me to sell a butt-load from the "core" list to make themselves bigger bonuses?

Well don't beat yourself up too much! You are smarter than you think.

The more business a GA/IMO/FMO submits to a certain carrier, the larger commission % they receive on that business. That doesn't usually translate into a larger commission % for the agent though.

It can get complicated because this is not a universal rule, every carrier is a little different. I would highly recommend reaching out to someone like Tahoe Ray who responded in this thread, he could explain your situation a little better and see if your current "Core Carriers" are reasonable or not.

 

[scagnt83]

It all depends on your situation. If they are a local GA that you are working under and is housing you, then you probably should try to find competitive options within their core carriers.

If you are on your own then there should be no question as to what to do... go use a different IMO that has the carriers you want/need.

IMOs have "core carriers" or "preferred carriers" that they tend to do the most business with. They reason for those selections can vary.

Generally speaking, the IMO will most likely make a higher override from their core carriers than from the non-core carriers.


If your current IMO's core carriers are not matching up with your client base, you need to look for a new IMO.


Do keep in mind that IMOs often get lots of requests from agents about "product offerings" and the comp that goes along with them. Often it is the agent asking just to ask. If you have an active case and desired product in mind, the IMO should be jumping to get you the info you need. If not then move on immediately to a new one.

 

[SuperWoman]

What's your market and what carriers are your GA's "core"?

I've just relocated to Atlanta - my market is anyone and everyone who needs life insurance. Generally up to age 60 at the moment. I am replacing some former clients from my captive days. Their cores are:


Banner
Cin Life
AIG (Commissions stink)
Lincoln (Good, but not so readily available to most clients)
Protective (Their UL/Term hybrid makes me uneasy bus HIGH commission & trails)

When I run quotes, their core are not always the least expensive. Banner is one they seem to like cus of fast/easier underwriting and issuing times. Comission is average.

While we're talking comp: How does one compare GA to GA? For all I know this GA could be talking out more on the top that the guy around the corner.

I dunno

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Well don't beat yourself up too much! You are smarter than you think.

The more business a GA/IMO/FMO submits to a certain carrier, the larger commission % they receive on that business. That doesn't usually translate into a larger commission % for the agent though.

It can get complicated because this is not a universal rule, every carrier is a little different. I would highly recommend reaching out to someone like Tahoe Ray who responded in this thread, he could explain your situation a little better and see if your current "Core Carriers" are reasonable or not.

First of all, I like that you think I am smarter than I think LOL. Thanks!

I did something very "unsmart" other day and wrote 2 MetLife 20 year terms for two people without knowing the comp. The comp person at the office is out of town and another person tried to help me get her comp data. When I got it, it was a year old and the MetLife product I applied them for wasn't listed. It's a simple regular term (Product name escapes me now). On the year old sheet, the highest Met commission was like 60%

So right after I flog myself for being a nitw wit, I have to call and find out what is accurate. Lesson learned.

 

[scagnt83]

I've just relocated to Atlanta - my market is anyone and everyone who needs life insurance. Generally up to age 60 at the moment. I am replacing some former clients from my captive days. Their cores are:


Banner
Cin Life
AIG (Commissions stink)
Lincoln (Good, but not so readily available to most clients)
Protective (Their UL/Term hybrid makes me uneasy bus HIGH commission & trails)

When I run quotes, their core are not always the least expensive. Banner is one they seem to like cus of fast/easier underwriting and issuing times. Comission is average.

While we're talking comp: How does one compare GA to GA? For all I know this GA could be talking out more on the top that the guy around the corner.

I dunno.

Seems like more people are relocating out of Atl these days vs. into it! lol.
Not really, but my area has seen a big influx of people from there trying to escape the traffic. Im about 2hrs up the interstate from you.

So which carriers do you want to write? Perhaps that is a better question. That is not a bad lineup...


Why do you say that LFG is "not readily available to most clients"?? Are you dealing mostly with smaller face policies?


Cinci Life can be a pain to deal with but has really competitive products. Comp can vary wildly from GA to GA from what I have found. Their ROP Term is probably the best out there.


AIG is competitive on price. Decent products. Comp is not the highest but not the lowest either. If you do some biz with them and shop around you can find higher.

Banner is basically just inexpensive term for people who dont care about converting ever. Good to have.


Metlife has some pretty low comp compared to others. But you can find higher contracts if you start doing more Met business.


Protective is a good product. You probably just need to learn more about how it works and get comfy with it since it is not a normal term product. Great company to work with though.


Comp does vary from GA to GA (or IMO to IMO, etc). Here is a quick breakdown of how comp works:

- Comp to the GA/IMO is based on production. So some GAs might have a total of 130% on LFG... while another might only have 110%.
- So there is always the possibility that the GA gets paid more from their main carriers vs. others.
- Some GAs push lower comp products because they are more competitive and the GA knows they will get more volume which will give a higher revenue. It just depends and is something that varies wildly.

- Agent comp starts (usually) at what is called "Street" comp. It is the base comp for a new agent who has zero production with that carrier. Sometimes agents are put below street for various reasons... usually assistance of some kind like free leads or an office to work out of.
- Agent comp is also based on production though. So as your production picks up with a carrier, you can in turn ask for a bump up in comp.
- Unless you have established production with that carrier, do not expect to get over Street.


Here is my advice to a new indy agent.
1. First and foremost, sell what you personally would buy if you were in the same situation as the client. That will be the key to making the most money possible in this career. Maybe not on a case by case basis, but over the long term that will boost your income more than anyting else. If that means using a different or multiple GAs, then do it. Most agents use multiple GAs.

2. In the first 2 years of being indy, forget about comp %s. Make sure you are at Street, then put it out of your mind.

3. After 2 years of being indy, review the carriers you are using and the production you have with each of them for the past 12 months. Then you can go out and start shopping comp if your production warrants it.


When you start asking about comp, the first thing a GA or IMO is going to ask you is "how much production history do you have with them?". If none, they are going to ask how much you plan to do with them, and how you plan to do it, and if you have ever done production like that before.


Yes there are some IMOs out there that will give out above street to just anyone. But the servicing you get from your IMO will become a big deal as your business grows. Not all are made equal, and good service that places cases with as little effort on your part as possible is easily worth 5% less if not 10% less.

Basically, you just want to make sure you are not getting screwed on comp. So if you want to know street comp for carriers just ask and the forum can help you out. As long as you are getting Street then its fair for an agent within their first 2 years.

 

[SuperWoman]

It all depends on your situation. If they are a local GA that you are working under and is housing you, then you probably should try to find competitive options within their core carriers.

If you are on your own then there should be no question as to what to do... go use a different IMO that has the carriers you want/need.

IMOs have "core carriers" or "preferred carriers" that they tend to do the most business with. They reason for those selections can vary.

Generally speaking, the IMO will most likely make a higher override from their core carriers than from the non-core carriers.


If your current IMO's core carriers are not matching up with your client base, you need to look for a new IMO.


Do keep in mind that IMOs often get lots of requests from agents about "product offerings" and the comp that goes along with them. Often it is the agent asking just to ask. If you have an active case and desired product in mind, the IMO should be jumping to get you the info you need. If not then move on immediately to a new one.

Thank you, SC, this GA is not housing me but I am def using them as my only source for the moment. I've been giving them regular business thus far and they certainly do jump to help me. They are very customer service oriented in this regard, which makes a big impression on me. Since I'm only in this business just under two years, I'm so new I smell like the inside of a new car

My former mentor at NYL always said one thing that I have now ingrained into my psyche "You don't know the questions you need to ask". That's true of any prospect I've ever met. They just think "gimme $100k" and as an agent, I don't know to ask why there are core carriers? LOL. I do now.

This all started when I wrote Met and didn't know the comp. I reached out to my GA and asked and finally was told for GLT-20 it's a huge 60%. For that I'd go back to NYL - NOT!

BTW - do many agents use more than ONE GA/IMO?

 

[Tahoe Ray]

I've just relocated to Atlanta - my market is anyone and everyone who needs life insurance. Generally up to age 60 at the moment. I am replacing some former clients from my captive days. Their cores are:

Banner
Cin Life
AIG (Commissions stink)
Lincoln (Good, but not so readily available to most clients)
Protective (Their UL/Term hybrid makes me uneasy bus HIGH commission & trails)

When I run quotes, their core are not always the least expensive. Banner is one they seem to like cus of fast/easier underwriting and issuing times. Comission is average.

While we're talking comp: How does one compare GA to GA? For all I know this GA could be talking out more on the top that the guy around the corner.

I dunno

----------

First of all, I like that you think I am smarter than I think LOL. Thanks!

I did something very "unsmart" other day and wrote 2 MetLife 20 year terms for two people without knowing the comp. The comp person at the office is out of town and another person tried to help me get her comp data. When I got it, it was a year old and the MetLife product I applied them for wasn't listed. It's a simple regular term (Product name escapes me now). On the year old sheet, the highest Met commission was like 60%

So right after I flog myself for being a nitw wit, I have to call and find out what is accurate. Lesson learned.

That's a pretty good lineup. I don't know why you'd be "uneasy" writing Protective. That product is really competitve.

Lincoln is also a go to so I'm not sure why you have lower availability there...

60% is low on Met's 20yr. You should be able to get more (but not the 90-110 that you might be getting with Banner or Lincoln)

Scagnt answered most of your other questions.

What carriers are better serving your clients that you don't currently have?