Covered California worth it for part time work?

[nufc]

I'm a financial advisor but with the current situation in the US I have quite a bit of free time. I spoke to someone recently who said he worked a few hours a week on Covered California and was able to make some okay money.

I have a CFP and EA but I am not currently enrolled as an insurance agent, can I sell Covered California on my own or would I need to work for a company?

Any other ideas that might be worth picking up right now for a little extra money and learning the insurance trade?

 

[mickeyma]

I sell Covered California as an independent agent appointed directly to the individual insurance companies.

It was great at first but leads and consumer interest have dropped considerably over the last couple of years. Most eligible people already have insurance through Covered California. Although, because of the huge spike in unemployment due to COVID -19, I assume many people lost their health insurance and will be looking at Covered Calif.

 

[DHK]

I have a CFP and EA but I am not currently enrolled as an insurance agent, can I sell Covered California on my own or would I need to work for a company?

Why wouldn't you have a life, accident & health insurance license?

It's funny what "Financial Advisors" think they do. You are an investment advisor, period. You advise on securities portfolios under the guise of "fiduciary advice". But without an insurance license, I don't see how you solve for longevity for income (annuities), premature death (life insurance), wealth transfer (life insurance), nursing home or custodial care costs (long term care), advise on medicare supplements (another side of health insurance)... ?

Granted, I don't touch health insurance at all, but I find it curious how acceptable it is to just charge fees and manage portfolios, and yet not use insurance contracts to leverage pennies to generate dollars of benefits - probably because of the perception of earning commissions and losing that prestigious "fee only CFP" label.

Which means, if you get an insurance license, you'll need to update your Form ADV Part 2 for outside business as well as your CFP disclosures. At least you'll be better able to serve your clients though.

 

[nufc]

Why wouldn't you have a life, accident & health insurance license?

It's funny what "Financial Advisors" think they do. You are an investment advisor, period. You advise on securities portfolios under the guise of "fiduciary advice". But without an insurance license, I don't see how you solve for longevity for income (annuities), premature death (life insurance), wealth transfer (life insurance), nursing home or custodial care costs (long term care), advise on medicare supplements (another side of health insurance)... ?

Granted, I don't touch health insurance at all, but I find it curious how acceptable it is to just charge fees and manage portfolios, and yet not use insurance contracts to leverage pennies to generate dollars of benefits - probably because of the perception of earning commissions and losing that prestigious "fee only CFP" label.

Which means, if you get an insurance license, you'll need to update your Form ADV Part 2 for outside business as well as your CFP disclosures. At least you'll be better able to serve your clients though.

I appreciate the background. I think that's a pretty bold and simple assumption that I'm just an "investment advisor". I also prepare my clients taxes at no cost and do in depth tax planning that correlates their taxes with their investments, estate planning, and other planning issues. Maybe you've forgotten what a CFP is but in many cases the planning aspect of financial advice is numerically more valuable than the work of investments and insurance combined. You also assume that because I'm not licensed that I do not ensure that my clients are properly insured. That is simply not the case. Seeking further knowledge in an aspect of planning doesn't mean that I'm blind to it. It just means right now someone else that I work with handles it who can offer better service to my clients currently.

Maybe you should get off your high horse and take a look at the CFP curriculum before you make such bold assumptions. I truly hope you aren't just providing insurance needs for your clients, if you aren't providing all aspects of financial planning to them how could you possibly claim to be providing suitable insurance to meet all of their goals and not just maximizing income? My clients are probably paying less than yours, are you offering all the services that I am?

 

[leevena]

I appreciate the background. I think that's a pretty bold and simple assumption that I'm just an "investment advisor". I also prepare my clients taxes at no cost and do in depth tax planning that correlates their taxes with their investments, estate planning, and other planning issues. Maybe you've forgotten what a CFP is but in many cases the planning aspect of financial advice is numerically more valuable than the work of investments and insurance combined. You also assume that because I'm not licensed that I do not ensure that my clients are properly insured. That is simply not the case. Seeking further knowledge in an aspect of planning doesn't mean that I'm blind to it. It just means right now someone else that I work with handles it who can offer better service to my clients currently.

Maybe you should get off your high horse and take a look at the CFP curriculum before you make such bold assumptions. I truly hope you aren't just providing insurance needs for your clients, if you aren't providing all aspects of financial planning to them how could you possibly claim to be providing suitable insurance to meet all of their goals and not just maximizing income? My clients are probably paying less than yours, are you offering all the services that I am?

Welcome to the forum, sorry for the rude reply. May I suggest a jock/cup, batting helmet, and tough skin, lol.

 

[DHK]

I have the ChFC and formerly held my series 7 & 66.

And the view from my high horse is pretty good.

 

[DHK]

My clients are probably paying less than yours, are you offering all the services that I am?

Fees are not the only aspects of quality in planning. In fact, I look to create a 0% tax bracket retirement for each of my clients... through the strategic use of life insurance.

And because of my focus, I don't have to offer "all the services" that you are. I stay in my lane and I keep my focus in one area.

Far more profitable that way.

If you're curious: Amazon product ASIN B0842YHBT6

 

[fed up]

DHK gives some great insight and advice on the forum. What bothers me is the idea that someone has a lot of spare time and would like to dabble in insurance to make some spare cash. Why not get your realty license as well? you have a business which caters to the financial security of your clients but don't think that insuring their security with LTC or Life Insurance is the avenue you would like to follow but instead sell mandated health coverage. Interesting!

 

[DHK]

Just remember - it was you asking this question originally:

Any other ideas that might be worth picking up right now for a little extra money and learning the insurance trade?

Comprehensive and low fees certainly isn't helping you at this time.

 

[Tahoe Ray]

If you have an EA, why not just pick up more tax clients?

Business owners are confused about EIDL, PPP, delayed filing, etc. Use these circumstances and charge them. Then, if they decide to become planning clients, you can waive those fees per your current business model.

Although, in my opinion, you should NEVER give anything for free as a professional. I understand that you probably wrap that into your planning services but that probably means that you should charge more.

I have no idea what you charge but this normally shakes out the same way:

Advisor A charges 1% on assets and includes taxes.
Advisor B charges 75bps and doesn't.

The client who is with advisor A moves to B since taxes are only a couple grand anyway and the math doesn't make sense.

Be advisor B and charge your clients for tax planning.

This is all supposition on my part so forgive that, please. I have just seen so many planners try to wrap everything together and end up losing clients because they're "bundling" all of their services and clients fail to see the value.

You end up having too many letters behind your name and not enough zeros behind the fees on your ADV.