Part time in NY, selling life to myself, friends, families. Need Advice

[newbie2]

Hi All, I have a full time job in NY, am thinking of getting my license and sell LIFE policies to myself, friends and families part time.

A few questions if I may:

1) Am I allowed to sell Life policies to myself in NY?

2) how do I go about doing this once I have obtained my license? Do I need to work for an agency or can I be independent? What are the pros and cons of each option.

3) If I am independent, will I have trouble getting Life products from reputable carriers?

Any advice would be appreciated.

Thanks
Lee

 

[Baseball7]

Bad idea there’s only a certain percent of control business/relatives you’re allowed to sell vs. non-controlled business.

 

[newbie2]

Bad idea there’s only a certain percent of control business/relatives you’re allowed to sell vs. non-controlled business.

Thanks, and that is governed by NY state or the agency I am with or the carrier ?

 

[DHK]

Common sense business practices.

Yes, you can write business on yourself and be paid on it... but it better not be the ONLY business you write. You can receive commission too, but don't expect an ADVANCED commission or sales credit towards awards/conferences for any controlled business.

 

[LostDollar]

I am NOT an agent. Your post reminds of an event many years ago in which I probably, totally unknowingly, created some financial problems for a family member.

When working with these family and friends folks, I would strongly suggest that you be confident they both need, and can afford (long term), the product you are selling and that they are NOT buying something from you just because they feel sorry for you or have a wish to help you in some simple immediate way.

In my personal opinion and experience, "helping" a "new salesperson family member" by making a purchase with long term financial repercussions to the buyer, is often a very unwise purchase for the family member buyer.

Also, again just a personal opinion, I suspect there are too many hidden costs and liabilities of being an insurance agent part time to make a part time plan to sell ONLY to family and friends a financially realistic plan.

 

[FinalExpenseDojo.com]

Hi All, I have a full time job in NY, am thinking of getting my license and sell LIFE policies to myself, friends and families part time.

A few questions if I may:

1) Am I allowed to sell Life policies to myself in NY?

Yes.

2) how do I go about doing this once I have obtained my license? Do I need to work for an agency or can I be independent? What are the pros and cons of each option.

After you get your license...
You must get contracted with the carriers though what's called an IMO. (Insurance marketing organization). Most carriers don't allow agents to go direct to the carrier for contracting. Carriers use IMOs to distribute products to agents so they don't have to.

IMOs are sort of like "Broker Dealers" in real estate. Each IMO has different carriers & offer different compensation.

3) If I am independent, will I have trouble getting Life products from reputable carriers?

Any advice would be appreciated.

Thanks
Lee

No, all carriers care about is if you are licensed & have decent credit. (Unless it's a captive only carrier like New York Life.) They don't care about experience. You can offer products with Mutual of Omaha, Transamerica, AIG, & other big name carriers from day 1 of being licensed.

 

[Lloyds of Lubbock]

And why are friends and family making a purchase from someone who does this part time?
I would think you would want your friends and family to deal with somene who has a degree of expertise.
What happens if you dont like doing this, then the contracts you sold get assigned to a stranger?

 

[fed up]

and if controlled business, you could get a chargeback of commissions up to 3 years after the sale

 

[Mike007]

Anyone who depends on their friends and family are often disappointed. Often times, they don't trust you because they know you since you were just a baby:

1) They know your flaws.
2) Most people you know do not what you to know about their business.
3) You better know a lot of them because if you don't, you might not even break even after you pay for your E&O, licensing fees, & CE.