Selling life insurance to employees (not Group Life)

[Tahoe Ray]

get appointed with a couple of group life carriers or an IMO that has access to several

I wouldn't use an IMO for group (true group). Go direct to the carriers. The IMO is going to make your price per thousand less competitive because they need a piece too.

I don't have a ton of experience in this space but I have had more than one IMO group (where I'm close with my contact) tell me to just go direct when I've found opportunities.

 

[Allen Trent]

I wouldn't use an IMO for group (true group). Go direct to the carriers. The IMO is going to make your price per thousand less competitive because they need a piece too.

I don't have a ton of experience in this space but I have had more than one IMO group (where I'm close with my contact) tell me to just go direct when I've found opportunities.

completely agree. only mentioned IMO in case the agent posting didnt know where to start to even look for group carriers or how it works

 

[somarco]

Yes, it is done with life insurance and has been done for many, many years.

https://www.insurancejournal.com/pdf/InsuranceTimes_20030805_39314.pdf

That article is almost 20 years old . . . it is a different world today.

Somewhere around that time I had a contract with a GPM GA . . . they worked with post offices and military bases . . . had a GTL (group term life) "conversion" program. I don't recall if it was for Civil Service, FERS or CERS . . . perhaps all three. Employees were given a multiple of salary (2x or 3x) that was good to age 65. From there the FA dropped by 25% at 65, another 25% at 70 and either another 25% at 75 or perhaps terminated.

The pitch was to "convert" some or all of it to permanent insurance so you would always have insurance plus some cash value.

I believe the product was GI up to a certain FA but could be wrong.

At that time we could walk into any Post Office . . . if the PG didn't know us we had an ID to let them know who we were and we were waived into the back room. The employees could talk to us about converting while on the clock and the PG didn't care as long as they didn't take too much time away.

We did the same thing at military bases . . . no problem getting in and there was always someone sitting at a desk doing nothing. We popped in unannounced and often made a sale.

That probably won't fly in today's world . . . doubt it would work in the civilian world either. Too many businesses are understaffed and overworked.

And then there is that China flu fear of getting sick and dying.

I don't even know if the PRD market is still viable in schools and businesses. Getting on the premises is one thing but no one wants to sit within 6 feet of you which makes it had to communicate.

 

[rousemark]

That article is almost 20 years old . . . it is a different world today.

Somewhere around that time I had a contract with a GPM GA . . . they worked with post offices and military bases . . . had a GTL (group term life) "conversion" program. I don't recall if it was for Civil Service, FERS or CERS . . . perhaps all three. Employees were given a multiple of salary (2x or 3x) that was good to age 65. From there the FA dropped by 25% at 65, another 25% at 70 and either another 25% at 75 or perhaps terminated.

The pitch was to "convert" some or all of it to permanent insurance so you would always have insurance plus some cash value.

I believe the product was GI up to a certain FA but could be wrong.

At that time we could walk into any Post Office . . . if the PG didn't know us we had an ID to let them know who we were and we were waived into the back room. The employees could talk to us about converting while on the clock and the PG didn't care as long as they didn't take too much time away.

We did the same thing at military bases . . . no problem getting in and there was always someone sitting at a desk doing nothing. We popped in unannounced and often made a sale.

That probably won't fly in today's world . . . doubt it would work in the civilian world either. Too many businesses are understaffed and overworked.

And then there is that China flu fear of getting sick and dying.

I don't even know if the PRD market is still viable in schools and businesses. Getting on the premises is one thing but no one wants to sit within 6 feet of you which makes it had to communicate.

Not really a different world. The payroll deduction market is alive and well. The government agencies around here all have payroll deduction products. I have a friend that still works the postal employees. Howard Catchings agency still works the school system in MS.. Last I heard he was using Transamerica as the primary carrier. As the old saying goes, the more things change, the more they stay the same. I get a lot of contacts from companies that are "getting into" the voluntary benefits market.

Here is the Catchings website... Notice they say they have branched into other markets but their primary focus is still "Burial Insurance.".

Catchings Insurance Agency

 

[somarco]

OP didn't seem to have an interest in the salary allotment business. Sounds like he wants access to employees to sell individual perm/term products paid for by bank draft . . . not PRD.

I haven't had any exposure to the group or PRD market for years but I don't doubt it is doing well . . . it's the walk in and pitch life insurance from scratch without an intro or endorsement that seems out of place.

I am sure AFLAC, Colonial, Allstate and the others are still peddling junk products and making a killing.

BTW, the website you linked appears to have not been updated since 2010 . . . . not a good sign.

 

[Allen Trent]

OP didn't seem to have an interest in the salary allotment business. Sounds like he wants access to employees to sell individual perm/term products paid for by bank draft . . . not PRD.

I haven't had any exposure to the group or PRD market for years but I don't doubt it is doing well . . . it's the walk in and pitch life insurance from scratch without an intro or endorsement that seems out of place.

I am sure AFLAC, Colonial, Allstate and the others are still peddling junk products and making a killing.

BTW, the website you linked appears to have not been updated since 2010 . . . . not a good sign.

Worksite products have struggled the last few years. Between shutdowns, remote working & social distancing most have struggled abit....sales were down 75% in 2020 compared to 2019.

 

[rousemark]

OP didn't seem to have an interest in the salary allotment business. Sounds like he wants access to employees to sell individual perm/term products paid for by bank draft . . . not PRD.

I haven't had any exposure to the group or PRD market for years but I don't doubt it is doing well . . . it's the walk in and pitch life insurance from scratch without an intro or endorsement that seems out of place.

I am sure AFLAC, Colonial, Allstate and the others are still peddling junk products and making a killing.

BTW, the website you linked appears to have not been updated since 2010 . . . . not a good sign.

There are people who are still going into small businesses asking for (and receiving permission to speak to the employees to sell them bank draft business. In fact, Many companies including Manhattan and Washington National have a form for the employer to sign giving that permission and if at least 3 employees buy then all of them will get the reduced rate that is given to payroll/salary deduction. I did one of those not long ago because the employer did not want to do payroll deduction.

Apparently Howard doesn't pay much attention to having a web presence.. I have always thought the website was terrible but apparently Howard is still alive and kicking in 2022. And, I am willing to bet if he is still kicking, he is still selling insurance.
Grand Opening of Howard D. Catchings Golf Driving Range & Putting Green - The Mississippi Link

 

[somarco]

Worksite products have struggled the last few years. Between shutdowns, remote working & social distancing most have struggled abit....sales were down 75% in 2020 compared to 2019.

I suspect as much . . . but as mentioned, I have been disconnected from that market for over a dozen years.

 

[DonP]

I had a friend in the late 1980’s under me with Time insurance company selling health ins . He eventually went to colonial life and accident . When I met him he was broke . Great salesman . In 1988 he started working the school payroll deduction mkt . I was amazed as some weeks he was making $5-$10 k doing all the enrolling himself . He worked his way up to become a state director and then the national director . I lost contact of him and when I looked 10 yrs later he was the national Ga over all unum agents . The lure of the payroll mkt is incredible residuals and persistency. It’s funny we all get in a little bubble in our own field of ins yet there are so many lucrative types of ins to sell .

 

[rousemark]

I am working with a couple that has American Income.. Terrible product but it is marketed through employers and unions on an individual basis. The difference is they usually see people in their homes instead of on the worksite. You know the old saying about skinning a cat.