Becoming an Independent Insurance Agent

[jody108]

Hi I just signed up today and looking forward to reading thru the comments. I am a new agent and will be starting in the new year. I have no experience in selling insurance but have sold other things thru out my life (except me). smileys are cute by the way.
I am looking for advice on what to look forward to as far as the first month and how long a comission takes or works etc.
I am selling or my license is for Life , Health and Variable annuitys and am working for AFLAC. One thing I have been noticing is the possible oversaturation of agents in markets.
I am willing to work and have no dependents other than animals.
I am also willing to listen to what anyone says. I am sure there are opinions on AFLAC also ..I myself am excited about the new job and field and know I am a novice and have lots to learn ..I really do need to know how the commissions work etc I haven't signed the contract yet. but was told of my percentages general area. I have been living off of unemployment(not much) and what the good Lord helps me with so am looking forward to paying my bills.. thank you. Florida by the way SW area.

Well, my advice is to stay focused on what you have already decided to do.

You'll get yourself all twisted up if you start searching on here about AFLAC.

You'll do fine at AFLAC if you give it your all....

Just like anything else.

 

[ticker_shuffle]

There are many good ideas but at the end of the day all that really matters is what you did with it. My advice for any new agent would be to put yourself in the position of the person that you are marketing to. Since you can't teach someone to have character let your trials and successes be your classroom. Let your actions and reactions be your tests. Many companies are good and many products are good. Pick your pony and work with blinders on every day. Don't stop to count your commissions until your work day is done. Count your blessings before you count your money and if you can't make a sale, it's best to make a friend. Find a Marketing partner that offers more than lip service and treat that relationship like gold. Be loyal to the people that help you succeed and those people will reward you more and more. Year one is tough and two starts to be better if you are working daily. Don't contract with every company as you will only make your bag heavy and it adds confusion to you and your prospect to have too many choices. Sell by listening more than talking. To many "know it alls" are willing to display thier assumed knowledge before even knowing what that prospect is looking for or needing. Don't be a fool with a loose tounge but instead use the wisdom and knowledge that comes with a trained ear. Work daily and forget the busy paper shuffling. Always have appointments to see. If you do not then the day you do not, you are literally unemployed.

In a matter of a couple months, I was licensed and appointed. I have one Life Carrier, Ohio National, and three health carriers: United Healthcare-Golden Rule, Aetna (for CA clients, group and supplemental) and Assurant for other options. You think this is good springboard? I am literally building out my website and business plan gearing up for the new year as we speak. Exciting times.

 

[TXSTATEINS]

I've been working in the insurance field (auto) for one of the bigger companies for the last few years and am now ready to go out on my own and start my own agency. I have my P&C and L,H&A licenses and want to get started this month. Should I file that LLC with the state first and then file my Agency with TDI? I live in Texas, by the way... Do I need to do both of these things in order before obtaining my E&O? I'm trying to figure out what the steps are to set up my agency... all the legal/paperwork involved has me feeling a bit lost. Would you be able to direct me on THESE "step-by-step" procedures for starting your agency and making it all legal and legit?

Everything else I've read is great, but now I need a little direction with these particulars.

Thank you.

 

[Jewels1969]

Re: Becoming a health insurance agent

As more and more new agents join this board I think it's important to create a sticky - something easy to refer to where you don't have to search through 6 months of posts. If other senior agents want to add something just reply and I'll add it into this sticky.

First: Join the Independent Health Insurance Agent Association - IHIAA-Home. We are set up for A to Z training and support also offering discounts on the top lead sources.

THE VERY BASIC ADVICE IF YOU'RE JUST LICENSED:

If you want to become and independent health insurance agent you should have at least three months of bills in the bank. Basic marketing is around $300 per week so you'll either need marketing money for at least six weeks or be prepared to cold call. The mindset you should have is you're going to be a small business owner. Owning a business in the past or at least past 100% commission sales experience is extremely helpful.

Ask yourself these questions:

1) Do I have an entreperneurial spirit? Can I manage my time on my own without anyone hanging over me?

2) Am I good on the phone? Whether you see your client in person or sell over the phone you'll need sharp phone skills.

3) Do I have spousal support? If your spouse is dead set against this or you have never been on commission during your marriage then.....

WHAT CAN I EXPECT TO MAKE:

Not to sound smug but that depends on you - zero to $100,000 1st year. A good hard-working agent can submit $10,000 per week in volume if you're busting your butt. At 15% that's $1,500 a week - at 20% that's $2,000 a week. Renewal income doesn't really kick in until month 13 however renewals are lifetime as long as the policy stays on the books. The more years you spend in the biz the more you'll have in renewal income.


WHICH COMPANIES WRITE INDIVIDUAL BUSINESS?

This is a list of companies that offer individual health insurance. Not all of these companies will offer coverage in your state so I'd suggest going to you state's department of insurance to get a list. Companies that offer an advance on commissions are in blue.

Aetna, American Medical Security, American Republic, Assurant Health, Blue Cross (find your state's Blue Cross) Celtic, Continental General, Coventry, Golden Rule, GTL, Humana, Kaiser Permente, Unicare, World and United American. You can Google any of these companies for their website.

To make a living just selling individual health insurance you will need Golden Rule and Assurant Health.

HOW DO COMMISSIONS WORK?

With the exception of some Blue Cross companies that pay a flat "per policy" commission you will earn a percentage of the annual premium. The average monthy premium is $300 X 12 = $3,600 average annual premium.

Commissions range from 10% to 25% depending on the company. Companies also pay either as-earned or advanced commissions.

As-earned: You will receive a monthly commission each month the policy is in force during the first 12 months. Take a 20% commission and a $4,000 premium to make the math simple. In this case it's $4,000 X 20% = $800 commission divided by 12 months. This means you'll earn $66 a month for 12 months.

Advanced: Same example: $4,000 premium X 20% = $800. In the case of a 12 month advance you'd receive the entire $800. In the case of a six month advance you'd receive $400 - the rest would come as-earned. In the case of any advance, if the policy lapses before the advance is earned you will be charged back. Example: Get advanced the full 12 months for $800 and the policy cancels after 8 months. In this case you will be charged back just over $260.

WHO DO I CONTACT TO GET APPOINTMENTS?

This is where it gets complicated. Some companies offer direct appointments. You simply go right to the webite, download the forms and fax 'em back. Aetna is an example.

With other companies you can choose a general agent or brokerage. What you'll want to do is interview several general agents or brokerages and simply find out who's offering the best total package of commission, training and support. One general agent might offer 15% with tons of training and support - another might offer 20% and you're on your own. The point is shop several offers.

Important note: In most cases once you contract through a general agent or broker it's binding for at least 6 months. That means if you come to find you have a bad deal you might not be able to get out of it quickly. Do your homework.

The best advice? Contract with Health Choice One: Health Choice One - Health Insurance, Medical Insurance, Life Insurance, Denver, Colorado - they are "one stop shopping" for carrier contracts, offer top contracts, you own you business and they do not lock you into contracts! Ask for Scott Slutzker.

WHAT MARKETING TECHNIQUES WORK?

If you're broke:

1) Get a list of small business owners and start telemarketing. I use Mailing List - Sales Leads , Telemarketing, Business, Consumer - GoLeads which is $9.95 per month. You can make about 50 calls an hour and generate 2 leads. You'll close about 1 out of 15 so you can do the math: For every 7 hours of calling you have a deal.

2) Business to business. Print up flyers and hit business areas. Ask for the owner and offer them free quotes for health insurance.

3) Doorhangers. You can get 10,000 for $300 at Door Hangers - Printing - DoorHangers.com That's 3 cents a pop and you'll get 1 deal per 1,000 placed. I'd hit townhome areas where you can slap up 200 per hour. At 200 per hour that's 1 deal for 5 hours worked.

If you have marketing money:

1) Internet leads. They cost around $8 a pop and if you're new count on closing 1 out of 20. That's still $160 spent for around $600 return on average so you'll need a high volume. Realize that you will be going head to head with other agents.

2) Telemarketers. You can contract through a telemarketing service or simply place free ads on craigslist classifieds: jobs, housing, personals, for sale, services, community, events, forums to hire home-based telemarketers. You can pay them between $10 to $15 an hour and they'll call small business owners, generate 2 leads per hour and expect to close 1 out of 15.

Those two methods are the main methods most agents use. You can supplement with your friends and family network, social clubs and your community.

You mentioned the best companies to get appointed with, but what about states? I live in CA, and am licensed in CA. What other states should I get licensed in? And which ones to avoid?

 

[Crabcake Johnny]

There's nothing wrong with writing in CA but if you need commission advances you'll want to choose other states.

 

[Alicelcb]

Re: Becoming a health insurance agent

thanks for your help. I have been doing senior products and this is all new to me. Could you please tell me the right things to look for in a GA? I live So. California and I am sure their are plenty to choose from, but I wouldn't know what to ask? The GA I have spoken to seems to be knowledgeable and a likable guy, but....

Do you know how to find a lcoal GA in Silicon Valley??
Thanks

 

[GoldenKi25]

Hello,

I'm a new independent insurance agent. I got my 2-15 (Life, Health, and Variable Annuities in Florida) three weeks ago. Before I consider the Insurance industry, I was unemployed for a couple of months. During the course of years, I accumulated a pile of debt, which I'm kind of paying.

Anyway, I don't have sales experience and to be honest, I feel a little bit scared about this new job. I just signed up with this new company "Insphere Insurance Solutions," and according to them, this company will be the biggest independent insurance company.

I met with them and I filled out all the paperwork. Now, I'm in the training process. Once I'm done with the training, I'll be ready to start selling. I'm exited because this represent a great opportunity, but at the same time, I feel I will have this enormous pressure on top of me.
The company receives leads, and as far as the marketing side, I will be provided with brochures, pamphlets, business cards, etc. I forgot to mention, but it's just commission.

The company is performance driven, so I got to sell if I want to stay in business, I understand...but I just feel that this going to be a great challenge. I just can't wait to go out there and sell.

Now, I noticed some experience insurance agents here, so I was wondering if you could give me tips and pointers in how to start and be successful in this business. Also, do you have any mental techniques in how to set a positive mental attitude? I know it's going to be hard at the beginning, but nothing is easy at the beginning.

Your advice will be greatly appreciated.

 

[Mark]

If you will email me at [email protected] , I will send you some free audio tapes and free prospecting systems that may help you.

Also do some searches on this forum and you will see a lot of good stuff.

 

[jmarkk1]

I certainly understand your fears in regards to working in the health and life insurance industry. Working straight commission is a very difficult task, but if you are able to provide your clients the best products for their needs then I believe it's worth it.

I've never heard of the company that you are working for, but I do have some things that I would say you need to watch out for:
1. Do they offer the best products in the insurance industry? When I first started out, I worked with United American's Flexguard plan. I was told that this plan was what clients needed, etc, and the commissions were extremely high, but UA had by far the worst claims paying of any company I've ever worked for. (I owned the plan for my family and had to drop it because it stunk!) You want to have both quality and competitive products for your area, so you're not locked in to a one size fits all type of approach.
2. You said that you're company is performance driven. This isn't bad if you don't mind being the salesman that pushes people into buying a product even if they don't need it. This is another reason why you want to have a wide array of good companies to work with.
3. Beware of promises! I've yet to find any one in this industry that has fulfilled their promises on the manager side of things. They'll promise leads, and they'll promise other things. The bottom line is that you have to work hard and act like this industry is up to you. If they do keep their promises, let me know.
4. Beware of them owning your book of business. The trade off for leads, etc., is that they will usually own your business. So, if you ever leave them for another opportunity, they will keep your business and commissions. (This isn't necessarily a bad thing, especially if you write a ton of business that cancels within first year and then you try to bail out)
If they provide you with good training and truly good insurance products that are designed to help people, I think it's worth it to stick with it so you can get good training and support. If they're going to just throw you out into the streets on your own, I'd run for the hills.

 

[Paradigm]

The primary challenge with captive entities even big brokerages can be that it is often quite difficult to get a release. Sometimes your debit balance is either too high for you to afford to pay it off lump sum and other times they may not give you a release.

Now if this is for some obscure captive carrier it may be fine because you can always sell the products of other carriers; however if it for large national carriers you want to continue to sell on your own it can be a problem.

The other problem is that they do own your book. Most agents do roll business with no consequences however because most organizations dont want the legal hassle of having to prove what 1099 really meant in their contract. However some may be more vigilant in their pursuit and that will essentially lock you out from your book of business and you have to start over again.

There are advantages to captive organixations: primarilly training, lead support and camraderie for the newbie agent which can be critical to success or failure. Disadvantages can be that you are controlled, limited in what you can sell, and when you leave you usually leave with nothing but experience.

Rarely does anyone self start as a new independent agent and be successful unless they have both a mentor and a bankroll. Most successful independent agents orginally started in captive brokerage organizations.