Very new to FE, Three questions.

Hi, I'm an under 1 year agent for a non captive firm. I was just contracted in January and have sold around $20k in AP. I'm thoroughly excited about the firm I work for. Our prospecting method is heavily through referrals, which I find to be pretty efficient.

That being said, as I was looking to supplement my time with leads to be more productive, I came across this whole thing of final expense, and final expense leads...seems like it's nothing more than cheap whole life? My current contracted company has a minimum of 25k whole life, that seems like it's on the high side for FE.

My primary question is around commission structure. I see around the forums mentioned around 110%-130% on avg. What is this % on? Is it on the annual premium? So if the AP is $500, is the commission 1.1 x $500 or $550? Then are the renewals around (AVG) 5% so .05% 500 = $25?

I'm currently paid 75% (or so) of AP, so I'm finding it difficult to understand/believe in FE you would get paid more than the first year premium..?


Second question:
How long does it typically take to get contracted with a FE company? Gerber, Assurity, etc. If you had to pick a top 5 that are goto companies that can satisfy most of your clients, which would those be? What is the processes like to get contracted? I'm currently Life/Health/LTC in multiple states and have E&O.

Thank you!

Hitch - you get your answers?
 
Hello,

Thanks for asking. I did get my answers and had a conversation with a forum member.

I'm currently in the processes of getting appointed with a few carriers so that I can better serve my clients. Right now, my minimum WL policy is 25k face amount. I'm finding that in the FE world, a monthly budget for a life policy is between $20 and $50/mo, or a little higher if it's children paying for their aging parents.

That being said, I'm slowly pushing this through, I think this will be a great supplement to what I already have going on. :)

Question: How long does the appointment processes typically take?
 
Hello,

Thanks for asking. I did get my answers and had a conversation with a forum member.

I'm currently in the processes of getting appointed with a few carriers so that I can better serve my clients. Right now, my minimum WL policy is 25k face amount. I'm finding that in the FE world, a monthly budget for a life policy is between $20 and $50/mo, or a little higher if it's children paying for their aging parents.

That being said, I'm slowly pushing this through, I think this will be a great supplement to what I already have going on. :)

Question: How long does the appointment processes typically take?

2 days for Prosperity.
 
All of this is too much for one post, so I’ll divide into several. I’ll preface my remarks by saying that I’m not trying to be negative or to discourage you. IMO, insurance is the best biz in the world, you just have to find your niche. But, you seem to have a much rosier vision of what it’s like than reality. Yes, there are some who sell FE that make serious money, but they are few and far between. It’s a grind and there are lots of expenses and taxes to consider. Your market is the low to lower middle income and they have a mindset that may shock you. If you can’t relate to them and they can’t relate to you, you will be dead in the water. IMO, FE can’t be a sometime thing if you want to be highly successful. That being said, if you’re serious about FE, you need to get in with one of the highly successful IMOs who are dedicated to training and helping you become successful. There are some IMOs that do little more than get you contracted and take their cut. Good luck!!!!!!!!
 
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