Selling State Farm Life..Good Idea?

[scagnt83]

Interesting about the SF rate increases. They are super low priced in my area for new business. Time will tell for my rate increases.

I have zero allegiance on my P&C policies. Totally different animal than Life/DI.

Give me a non-can auto policy and I will be a customer for life. But to my knowledge, that does not exist.

 

[Newby]

So it must be up to the office wether they sell medicare or not it would seem .

When I used to run into State Farm agents selling Medicare it seems like they were captive with Humana as the only option. I used to run into their supplements when they were $100 per month higher than Aetna or MOO for a turning 65 person. I made it a point of not only re-writing the Med Sups and life insurance but referring them to a local broker for their home and auto to get them completely away from Snake Farm. I was very successful with that many times.
One of my biggest failures though was an appointment I had with a couple in their 80's that had bought Humana Med Sups through their State Farm agent years earlier. They were both perfectly healthy and could get approved anywhere. And I could save them nearly $4,000 a year between the two of them with Aetna. But they wouldn't budge. They were scared to death to get away from their great Humana policies. They were not even close to wealthy but just thought nothing could be as good for less money.

 

[Allen Trent]

you have an office culture problem. with the amount of customers & new PC being written, someon focused on life insurance solely could easily produce 5-10 life policies per month, even at state farm rates. (tons of agents in the industry sell life products more expensive or non immediate coverage IE: final expense, etc)

If the agency had a good culture, the staff would be happy & the clients would be happy in general & enough people needing income protection, protection for debts, final expense coverage.........................with all that said, 3% commission is way too low as the SF agent is likely getting 50% 1st year new commission & also getting annual bonus tied to life production on their PC renewals, meaning some agents may make 50% on life & others may end up making 300 or 500% when all bonus income added into it if they are writing the needed life. If you are only getting 3%, my guess is the agent figures they are paying you $3200 per month in wages & they wont make $3200 from the life sales if just writing small every day cases with $20 to $50 per month premium. The agent may only make $10-$15k for the entire year on 72 small term/WL cases & would be paying you $40k to write it (if all you are doing is writing life).

 

[tikibarrister]

Wow...just wow...

Keep in mind that out of her 100% she's paying all the overhead, marketing/lead expense, etc.

Not saying you're getting a good deal by any means, but if you went independent you'd be paying money for your own leads and marketing. Once you factor in those costs and your closing rate, it's a more fair comparison, not jut 3% vs 100%.

For example, a typical FE agent might make $600 commission on a sale but might be shelling out $150+ in leads, gas, etc. to get that sale.

I've never heard anyone say that the way to make it in this industry is to sell life insurance as an employee for a captive agency.

 

[scagnt83]

And I could save them nearly $4,000 a year between the two of them with Aetna. But they wouldn't budge. They were scared to death to get away from their great Humana policies. They were not even close to wealthy but just thought nothing could be as good for less money.

I find that can be common with certain older fol

Keep in mind that out of her 100% she's paying all the overhead, marketing/lead expense, etc.

Not saying you're getting a good deal by any means, but if you went independent you'd be paying money for your own leads and marketing. Once you factor in those costs and your closing rate, it's a more fair comparison, not jut 3% vs 100%.

For example, a typical FE agent might make $600 commission on a sale but might be shelling out $150+ in leads, gas, etc. to get that sale.

I've never heard anyone say that the way to make it in this industry is to sell life insurance as an employee for a captive agency.

All true.

But the OP is expected to run social media campaigns to bring in leads.

If they are capable of doing that, they will be much better off doing that indy while sitting at the kitchen table. Nobody wants to go into an office to buy a term policy anymore.

 

[goillini52]

However the agent is telling me not to sell yet until I can get Life sales up. I'm really not enthused by 3 percent commission for Life but she said something about her score card bonus and all that crap. She has not made any sales for medicare because she didn't have anyone to work it and because it's the least of her concern.

Sounds like she needs you, more than you need her.

 

[scagnt83]

Sounds like she needs you, more than you need her.

If it were me, and I wanted to stay, Id ask for double the hourly pay and forget the 3% comp.

 

[Txmade99]

If it were me, and I wanted to stay, Id ask for double the hourly pay and forget the 3% comp.

That's what I was thinking about, especially since Im not doing much p&c this time or getting health commissions because im focused on life. I might just go ahead and quit. I got two life policies today from calling out and pivoting. That's more than she gets in a month.

I was in the office by myself today and needed help with some complex business policies. She told me she would be there in the morning but never showed up. When I asked her where she was at, she said she was getting her new house painted. She could have just told me she wasn't coming in for the day. I even had a life appointment lead set up to speak with her but she forgot about the freakin appt. I'm starting to see why I left the first time. She's too lazy to sell or pick up the phone to sell or find prospects. She wants me to do it myself and plus babysit/train her staff to get life leads. I did all her P&C sales last year by myself with no help. I quit when I saw myself doing all the grinding. I know it sucks chasing p&c leads/quotes all day and cold calling life but do something! I thought maybe I jumped the gone too fast in leaving last year. I really came back for more training in business/commercial, but I'm not sure I will get that training and support from her.

Also she really didnt want me to go into other areas of insurance and/or we would never have time to train in other areas because she needed me to focus on her general pc especially since she had a high turnover rate. She does not want me to focus on medicare right now because she knows if I focus on the bigger commissions, I won't focus on the 3% percent life sales. So I don't see where this meets any of our interest as far as working together and moving forward in my career. She keeps telling me to be patient and focus on one thing. But I sense she's bullsh*^ting because she knows if I get the information I need, I'll go independent. So she is asking me to commit to 2 years in working for her.

It's a shame, she really should be at the top of her region. She used to do decent last year when I was there usually coming in at 7th or 8th place but its gotten lower for her in which she blames her current staff for laziness. New State Farm agents are coming in the game and killing it and they dont even have a book of business with SF. She should be atleast at 3rd place in her region because she has had her agency for 23 years and enough book of business to get there. She just doesn't want to get out there and grind She told me if I can get life sells up, State Farm will offer an agency. I actually like working for State Farm but don't think she is a fit for me as an agent to work for. I see why her other employees went on to work for other State Farm agents.

 

[fed up]

Explain to her how medicare insurance sales are a foot in the door to sell additional products such as life, home, and auto. The pivot from a med supp presentation to small life policies is easy easy easy

 

[tikibarrister]

New State Farm agents are coming in the game

Ya think? In Portland, Oregon and surrounding metro there are 75 SF agencies last time I checked. 75! All fighting over a thoroughly penetrated market. I get flyers every month from two different SF agents (plus Farmer's and Allstate...the Allstate ones print a picture of my house from Google Maps on the outside of the envelope )

She told me if I can get life sells up, State Farm will offer an agency.

I thnk that would require you to also offer some cash, but I've never gone down that road. The legendary thread Becoming a State Farm Agent is good reading.