Picking the Right Company

[DHK]

Why is it that some of you are so hung up on "Ratings has nothing to do with how quickly a life insurance company pays claims." Nobody has ever said that. What was said is that the risk is higher for a lower rated company to be able to pay the claims. The stronger the financial stability the more likely they are to pay their claims in a timely manner. It is a correlation not a causation. We aren't talking about the process. We all understand the process that is not the point.

Because you are making a correlation that not even the rating agencies are making and expressely stated in their own material.

Now, you can say that you have observed things based on the ratings of the company... but that's an observation from experience, not an industry fact.

 

[JaceG]

What defines successful?
I've seen several people mention that it takes 3-7 years?

I'm looking to learn to sell insurance with hands on guidance. I have previous sales experience from my own consulting to technology services to products to other stuff.

Culture is vital to me, I'm pretty great at identifying good culture, but I really need to know exactly what I need to look for in order to not get trapped or shoot myself in the foot if I join the wrong team and need to switch.

I would also like to know if working with multiple companies is a good or bad idea just starting out, and if it isn't an easy answer then why is it good or bad so I can discern for myself.

I would like to be doing this 8-12 hours a day 4-6 days a week.

I would like to spend about 200-1000 a week on leads as long as I can at least double my investment reliably to come ahead on average 11 out of 12 months out of the year.

I would ultimately like to get to a point where I can make 400k a year from issued policies

I would be through the moon to hit 220k a year and content if I never ended up making more than that a year from then on for whatever reason

I would like to make 120k after business expenses (leads, etc) in less than 2 years

It is vital that I make over 70k within my first year and can put at least 70% of that in my pocket.

Some companies that have reached out to me that I've been talking to are:

Marathon VDH

FFL

US Health

I am in Tampa FL and would prefer to sell Hybrid Remote with in-office being fully optional.

Full remote would be my next choice.

And I do understand Life Insurance better than Health Insurance but have no preference as to which I sell as of right now.

 

[PrivClientSG]

Because you are making a correlation that not even the rating agencies are making and expressely stated in their own material.

Now, you can say that you have observed things based on the ratings of the company... but that's an observation from experience, not an industry fact.

The above was said -- what I believe is -- perfectly. Could not have been said any better. Thank you.

 

[Lloyds of Lubbock]

It is nice to have financial goals set but why do you want to sell insurance?
A.A financial means to an end?
B.You feel it is an industry in which you can help people and be well paid doing it. (Hint , correct answer).
The fact that you have no preference would indicate,(I dont know you and this may be a 100% wrong) you just want to sell something to make money.
As far a knowing more about life insurance, "People do not care how much you know until they know how much you care"
Assume you want to help people.
Who? Protecting families in the event of a premature death.
Helping seniors with the rising cost of healthcare.
What are your experiences with insurance?
Who could you have helped and how?
I have had 2 parents die in nursing homes, talking about LTC is easy for me.
I have had cancer twice and collected disability, helping people avoid going broke due to a disability is an area that I feel I can help people.
If you can figure out the "why" of being an insurance agent, finding the right path to go down will be easier

 

[Deborah Armstrong]

Because you are making a correlation that not even the rating agencies are making and expressely stated in their own material.

Now, you can say that you have observed things based on the ratings of the company... but that's an observation from experience, not an industry fact.

It isn't observation at all. I have a bachelor's degree in Finance were we create financial models on spreadsheets. I base things on my finance degree. We were taught how to create financial models on spreadsheets and taught to look at financial stability and

I'll reply since you quoted me. First, you stated, "the risk is higher for a lower rated company to be able to pay the claims." Just to clarify -- you are actually saying that the risk is higher, for a lower rated company, to NOT be able pay claims. Right?

That said, I see you now speaking to two distinct and separate issues -- one being how quickly, and two, ability (specifically, in the post above you say, "to be able to pay the claims.")

For the former, the primary reason I am "hung up" on "how quickly" is because ratings has nothing to do with how quickly a life insurance company pays claims. Period. You can connect those "financial" dots if you so wish, or if you believe a connection exists. However, there is no factual quantification, formulaic equation or value, or any financial representation that has to do with how quickly a life insurance pays a claim, is more likely to pay it faster, slower, etc. Other than your logic flow and personal opinion, show me the factual proof on lower rated companies paying slower, being more likely to pay slower, or whatever theory you are purporting.

Now, as far as your statement, "the risk is higher for a lower rated company to be able to pay the claims." -- again, a lower rated company being more likely to NOT be able -- that speaks to ability. I have one simple question...Are you serious? You believe that a lower rated company may not have the ability to pay a death claim?

Have a great holiday weekend everyone!

You seem to want to double down on your own opinion and are "hung up on how ratings have nothing to do with how quickly a life insurance company pays claims." We are talking about the financial stability of insurers to meet their obligations. It doesn't mean they will or won't make the payments or they will or will not be timely.

We are talking about reducing risk to the insured by choosing a better rated company.
Demotech, Inc, AM best, Moody's and all the others use quantitative ratios to measure an insurer's financial stabilty. They use the insurer's balance sheet to determine their financial stability to meet their financial obligations. The higher the rating the more financially stable they are and the MORE LIKELY they would meet their financial obligations.

I am very easily able to connect those dots because I know how to read financial statements. I know how to create a financial model on a spreadsheet. My bachelor's degree is in finance. My statement stands.

[EXTERNAL LINK] - Rating Methodologies

 

[Deborah Armstrong]

Because you are making a correlation that not even the rating agencies are making and expressely stated in their own material.

Now, you can say that you have observed things based on the ratings of the company... but that's an observation from experience, not an industry fact.

It has zero to do with observation. I am a finance person with a license in insurance. My degree is in finance. I understand how financial analysis works. I question if you understand how it works.

Demotech, Inc, AM best, Moody's and all the others use quantitative ratios to measure an insurer's financial stability. They use the insurer's balance sheet to determine their financial stability to meet their financial obligations. This is how it is done and has always been done. There is an absolute correlation between a company's financial stability and their ability to meet their financial obligations.

 

[Lloyds of Lubbock]

If I am not mistaken....and it would not be the first time, what is being said is the financial stability of a company is not correlated to the speed of the payment of a claim.
I believe this to be correct.

 

[Deborah Armstrong]

If I am not mistaken....and it would not be the first time, what is being said is the financial stability of a company is not correlated to the speed of the payment of a claim.
I believe this to be correct.

ok I get that and I agree it doesn't mean that a lower rated company isn't going to pay or not make timely payments.

When I say correlation, I am saying that there is a correlation between not meeting financial obligations and a company having a lower rating. It is nothing more than a risk factor.

The reason for this risk assessment is to determine the statistical probability that payments will be made, or will be made on time. It serves as a metric to use when making any further determinations. It doesn't predict the future nor does it determine whether or not the insurer will pay the insured.

 

[JaceG]

It is nice to have financial goals set but why do you want to sell insurance?
A.A financial means to an end?
B.You feel it is an industry in which you can help people and be well paid doing it. (Hint , correct answer).
The fact that you have no preference would indicate,(I dont know you and this may be a 100% wrong) you just want to sell something to make money.
As far a knowing more about life insurance, "People do not care how much you know until they know how much you care"
Assume you want to help people.
Who? Protecting families in the event of a premature death.
Helping seniors with the rising cost of healthcare.
What are your experiences with insurance?
Who could you have helped and how?
I have had 2 parents die in nursing homes, talking about LTC is easy for me.
I have had cancer twice and collected disability, helping people avoid going broke due to a disability is an area that I feel I can help people.
If you can figure out the "why" of being an insurance agent, finding the right path to go down will be easier

Thanks, Simon Sinek

 

[DHK]

It has zero to do with observation. I am a finance person with a license in insurance. My degree is in finance. I understand how financial analysis works. I question if you understand how it works.

I have a CLU and ChFC. Want to know what CLU says?

HS 323 Individual Life Insurance Chapter 20:

The only time that the timely payment of claims was mentioned in any of these ratings (per the TEXTBOOK) was for C ratings.

I can't imagine anybody actively selling for a company with a C rating. Companies may FALL into a C rating, but no one would sell for a C rated company.

So, B ratings and above... are they solvent? Yes. Can they pay timely? Yes. Will they? Depends on company practices and everything else.