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Deleted by yours truly, James.
Why sell permanent Insurance?
- Thread starter James
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If you want to know about annuities the best source is Jack Marrion and you find his site at http://www.indexannuity.org/index.html
Plus he has several books also and is regarded by most as the foremost expert on the Annuity product.
Plus he has several books also and is regarded by most as the foremost expert on the Annuity product.
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NHB_MMA said:
http://www.financial-planning.com/phorum/index.php
This is a good place to go if you are seeking "Real" advice about financial planning. Now I wouldn't go there to seek out how to sell or market but for solid financial discussion this is a good forum. Yes, I betcha the moderators over there, some with 25 plus years in the financial advisor roles, authors and credentials from all the high and mighty organizations of financial planning. Would agree that any FP or IA that promises such returns in a enviroment of income replacement would just assume to see such be taken out of the role of FP or IA.
What they would likely advice is figuring out how much they need per month or year. Then they would seek out that persons risk tolerances and then other information but that is the cornerstone, how much they need and risk tolerance plus age. Of course a total financial workup has to be done, that may be complicated or quite simple, it depends upon the individual and there existing financial standing.
Its quite impossible to make any recomendation without knowing all the information. Yet though my guess in a simple case of someone that is senior lets say 60 plus it would be around 70/30, 70% in safe harbors that make up the "Income" and 30% to grow for future needs or a number of differing calculations. Yet though with out a doubt, Annuities would be a cornerstone product to use since you have prediticability with the income side.
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James said:
I like the site and read his personal statement and he actually seems like a fantastic guy. I especially like this statement he makes:
I do not believe in blindly attacking everything that does not agree with your own answer. I canÂ’t comment on the ethics of this attack approach because I donÂ’t believe in ethics (IÂ’ve never met anyone who admitted to being unethical), but I question the effectiveness of it. The reality is absolutes are a rarity and in the financial world risks are relative, costs are relative, and often truths are relative. One needs to attempt comparisons on relative merit in providing the best solution.
And I believe a person should reveal any personal agenda that might affect perceptions. Whether it is an annuity producer revealing they get paid a commission or earn a trip for making a sale, a consultant saying he gets paid to speak, or an attorney general revealing unannounced gubernatorial aspirations, I believe the information should be available. This is my full disclosure.
Following the advice of the person you admire the most obviously disclosing your commission to your client is recommended. So if someone's about to buy a $10,000 annuity you should obviously disclose that you're making $10,000 off that sale.
Again - fantastic guy.
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john_petrowski said:
I agree, transparency is a good thing. Also if I sell a (I'm assuming you mean a 100 grand annuity) I won't make 10 grand, likely it'll be between 4-8 grand depending upon the annuity. Yet at this range I'm likely selling a SPIA so that even drives the commission down. Just like I'm assuming you are transparent when you sell health coverage and your 20% commission plus renewal commission of whatever amount. I find most have no problem with understanding we all are compensated for what we do, if they do have a problem then so be it I assume not to deal with such people.
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I would have no problem telling my clients that I made from 15% to 25% off their 1st year premium. Health insurance is not an invesment therefore I'm not chewing into any returns.
I would be embarrassed to admit that I get paid 100% of their life insurance. I don't think any client would like the fact that I'm getting every cent they pay for the 1st year premiums. Just imagine the disclosure if I'm selling a perm policy:
"I just wanted to let you know that my commission on your $300 a month UL policy is well....all of it. Thanks."
I think it speaks volumes that health insurance pays agents about 20% on average of the 1st year premiums with about 30% build into the deal whereas life insurance companies somehow seem to have about 140% in the deal. Just show the insane profit they made at the client's expense.
I would be embarrassed to admit that I get paid 100% of their life insurance. I don't think any client would like the fact that I'm getting every cent they pay for the 1st year premiums. Just imagine the disclosure if I'm selling a perm policy:
"I just wanted to let you know that my commission on your $300 a month UL policy is well....all of it. Thanks."
I think it speaks volumes that health insurance pays agents about 20% on average of the 1st year premiums with about 30% build into the deal whereas life insurance companies somehow seem to have about 140% in the deal. Just show the insane profit they made at the client's expense.
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john_petrowski said:
Well then dial down your commissions if you or they have a problem with it. I admit there is no way of doing it with term for the most part but in WL or the UL its easily done. I don't suggest it unless there is specific needs and experience by the agent, I don't for the most part but am learning at times it will become a necessity. In fact if I go ahead with my IA desires I would offer that, in this way it becomes nearly a fee not a commission that both parties can feel comfortable with. Lets face it, in the insurance world it is uncommon to find a noload product that produces worth a crap.
G
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Sorry, deleted, had second thoughts about my posting.
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Plus comparing the structure of Medical Insurance and Life Insurance isn't fair at all. One will not get a rate increase as long as they hold their life contract unlike a health contract which is only stable for a year or two! So the selling of health is more easily done plus the resale or the switching of contracts will be greater in health than any life product I can think of.
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We still get paid far less and arguably have to do a lot more work. Average health commish is 20% and average premium is $3,500. That's a $700 commish. Compare that to a $3,500 life premium at 90% and the commish is $3,150.
But for $3,150 there's nothing to service. For $700 there's a lot to service. Even figuring in the renewal at 5% that's only an extra $175. Still doesn't come close to life commissions.
But for $3,150 there's nothing to service. For $700 there's a lot to service. Even figuring in the renewal at 5% that's only an extra $175. Still doesn't come close to life commissions.
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