Top Producing Captive Agent Vs. Independent?

[JoeInsGuy]

Hey All.

As some of you may or may not know, I am currently a captive agent at a good company. I enjoy being captive for now and had a question in regards to income.

Say that you are a captive agent placing about 500 policies/yr. This includes bonuses and commissions making $X.... Amount/Yr. This also includes renewals and conservation pay.

Also note that This income is 99% Life Insurance.

What would you make as an independent agent in income/ yr assuming that the avg. policy size you place is $650 in premium and you have a pretty good mix of Whole Life vs. Term working with the middle income market?

I'm not sure if this is enough information. So if you need more let me know! I'm just curious to see what an independent might make vs. captive.

Joe

 

[669comche]

As an Indie you can expect to make at least 100% of the annualized commission for term policies. Note that there is limited, if any renewal on term plans as an indie.

I don't do WOL so cannot comment on that.

 

[Larry Tew]

Joe, you can create a hypothetical scenario that will favor either situation, so trying to look at this with a microscope will not give you a definitive answer. So the equation looks like this:

Indy Commissions and pay all your overhead and benefits versus Captive Commissions plus benefits, office, etc.

There's group medical and dental, social security matching, defined benefit pension, 401(k) match, office, staff, clerical, technology, are your renewals vested, etc.

You may not be getting all those things, but you have to put a value on the benefits you're getting and then do the math. If I've said it once I've said it a thousand times... the perceived difference in money should be the LAST reason to switch.

 

[JoeInsGuy]

Hi Thanks for your response.

I am not looking to switch. I am enjoying myself, I actually train the agents that come on board with us and prepare them for this career.

What would the compensation be before all of the expenses are deducted for indie? I am business man and can do the math myself. Thanks!

Joe

 

[Franz Kafka]

How are you going to find leads for 500 new clients? Spend time figuring that out.

 

[JoeInsGuy]

How are you going to find leads for 500 new clients? Spend time figuring that out.

The same way that this agent is doing it....

Geezus i'm asking a simple question, please refrain from dumb, smart remarks.

Just because you can't make 500 new clients ayear doesn't mean it hasn't been done!!!

 

[Larry Tew]

Joe, I understand you didn't say in your post that you were considering a change. I made the mistake of assuming it. If it's such a simple question, figure it out yourself. This thread is 10 minutes of my life I'll never get back.

 

[Franz Kafka]

The same way that this agent is doing it....

Geezus i'm asking a simple question, please refrain from dumb, smart remarks.

Just because you can't make 500 new clients ayear doesn't mean it hasn't been done!!!

It was meant as a sincere suggestion and not a smart remark. In short, there's no significant difference between being captive vs independent if you are a top producer. With pension captive might even come out ahead. Additionally no top producing captive agent that I know ever wonders about their income potential as an independent. JMO

 

[JoeInsGuy]

It was meant as a sincere suggestion and not a smart remark. In short, there's no significant difference between being captive vs independent if you are a top producer. With pension captive might even come out ahead. Additionally no top producing captive agent that I know ever wonders about their income potential as an independent. JMO

Really? Hmm.. I'd be interested to hear from some other Indies on this...

See, now that remark was much more informative than your previous post. Thx.
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Also, i'm still interested in the numbers that an Indie would make on average considering that information..

 

[TheKoenigGroup]

Really? Hmm.. I'd be interested to hear from some other Indies on this...

See, now that remark was much more informative than your previous post. Thx.
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Also, i'm still interested in the numbers that an Indie would make on average considering that information..

Sometimes you can take things the wrong way, I saw he meant by it, he was just trying to be concise, not start a flare up!