Selling State Farm Life..Good Idea?

[Txmade99]

I used to work for a State Farm agent last year selling P&C, med supps and medicare advantage. I did pretty well. I left because I got bored with P&C. Fast forward today, this same agent asked if I could come back and help her with Life insurance sells. Her regional manager is hammering her to produce 6 life policies a month. Right now she is averaging at 1 to 2 policies a month only.

Her marketing strategy is only Everquote for Autos and Home then her staff pivots off these Auto quotes. She says she feels her current staff isn't doing enough pivoting/asking. The staff tells me they are but customers are saying it's too pricey. She says she is going to have to let her staff go if they can not meet the Life goals.

She gave me 350 list of customers in her book of business to call that may be likely to buy Life. So I called them up. I got alot of upset customers wanting to go over their premium increase bill that SF issued out on all customers due to inflation. So majority calls ended up turning to service calls. There were some that wanted quotes but probably because of the $20 dollar gift card SF is giving out this month. The ones that were actually needing to purchase didn't like the price. In my opinion the time to have offered these customers Life was when they first called in for Home and Auto. These customers are cold calls now. But atleast they know SF sells Life in case they didn't know.

The clients that ask for it are the existing SF customers that I have called up that already have Life thru SF and want to purchase more. Occasionally she will get current customers needing it at the last minute when a family member is sick or they may be purchasing a home, but it takes some time to decide if they can afford it. But these customers are still not enough to meet the quota. She is hoping I can coach her staff on how to ask for more Life but I think their doing an okay job as long as they can remember to ask everyone calling in for an Auto quote.

This agent by the way doesn't do any calling or prospecting because she says she's busy servicing her book of business. I believe this is why she's far behind. She wants to do the easier stuff instead of getting her hands dirty in sales. So that's why she wants me to be accountable for her life sales and wants me to report to her Regional manager.

Is this task worth me taking on, especially if she's not doing it herself? I feel she doesn't have any sells strategies, training or anything set in place. She just wants to throw me out there. She is wondering if she should purchase life leads but I don't know if that's going to help if State Farm is not competitive in Life insurance. I do know how to do social media marking/seo but if I'm going to do this, shouldn't I be doing this for myself independently?

My commission by the way is 3% percent of Life and P&C and if we can maintain the Life quota each month all products go up to 6 percent. I'm at $19 an hour. I really just wanted to focus on med supps and med advantage because thats half of agency's commission and get more into business for higher commissions as well but she won't let me right now because she really needs help in getting Life sales up right now.

Is it worth it to help her try and sell Life? As far as I can see the only way for her to get Life customers is pivoting potential customers calling in for Auto or Home. But thatsbthe reason I left last year because I got tired of general P&C.

 

[scagnt83]

My commission by the way is 3% percent of Life and P&C and if we can maintain the Life quota each month all products go up to 6 percent. I'm at $19 an hour..

Total comp on life insurance is around 100% or more.

So you get 3% + $19/h, she gets 97%.

You should be making $50/h to make it worth your while.

However, I think that 3% is good comp on P&C sales. But im not a P&C agent.

 

[scagnt83]

She is wondering if she should purchase life leads but I don't know if that's going to help if State Farm is not competitive in Life insurance.

Not worth it imo to get leads. As you said, SF is not competitive and is overpriced compared to most other life carriers.

Your best bet are existing clients and her book.

Dont they get an extra discount on P&C if they add life? That whole bundle thing? That would be my sales pitch.

I do know how to do social media marking/seo but if I'm going to do this, shouldn't I be doing this for myself independently?

Yes. Very much so. You would get 90%-110% comp on your life sales as an independent agent.

 

[Newby]

In my area SF only sells non-guaranteed UL Life because they get murdered on the price of term and whole life.
Their strategy seems to be to sell people UL policies and just let them assume that they bought whole life. Until they run into a good independent agent, of course and then it gets replaced.

 

[Txmade99]

Not worth it imo to get leads. As you said, SF is not competitive and is overpriced compared to most other life carriers.

Your best bet are existing clients and her book.

Then I dont know how much of service I would be to her existing clients being that alot of her client base is Hispanic and they prefer Spanish speakers which I'm not. She was hoping I can bring in fresh people thru my marketing skills but if I'm going to do that, I should do it for myself. I don't even feel comfortable offering that to outside potential clients because there are better life products out there.

I do pivot from auto and home sales in which I get people interested in a quote but so far no takers due to the price. I have been with her for 2 or 3 weeks. So far I've only sold to SF clients whom I had to call who already have existing Life policies and wanted more or needed something else.

I really don't want to have to do auto sales just to have to pivot to life because I'm done with doing general pc.

I think I will tell her its not working out. She's going to be disappointed because she wanted me to serve as the office manager as well and train her staff to get more sales sicevher sales have been low across the board since ive been gone. I coached one of her staff members and she is now able to effectively ask and pivot for Life quotes where as before she wasn't comfortable. Now she is beating me in quotes because she can speak Spanish. However she still hasn't made a sale yet.

I'm just not understanding how she is demanding these life sells when she is doing nothing to help her staff get it. So I was trying to see if I'm being unreasonable and should stick it out or just try ti go independent.

 

[Txmade99]

So you get 3% + $19/h, she gets 97%.

You should be making $50/h to make it worth your while.

Wow...just wow...No wonder I'm not all excited about this. The last person she had helping with all her home and auto sales quit when she told her to start selling Life or take a pay cut. She laughed at the life commission then told our Agent she would have to talk to her husband about it. The next day she said it wasn't worth it and quit. She ended up working for another SF agent under an old contract that didn't have to sell life. My agent said she was insulted by this.

 

[Txmade99]

In my area SF only sells non-guaranteed UL Life because they get murdered on the price of term and whole life.
Their strategy seems to be to sell people UL policies and just let them assume that they bought whole life. Until they run into a good independent agent, of course and then it gets replaced.

So true. First quote I gave was UL because the whole life was too pricey and the term was alright but of no benefit to the customer.

 

[DonP]

I used to work for a State Farm agent last year selling P&C, med supps and medicare advantage. I did pretty well. I left because I got bored with P&C. Fast forward today, this same agent asked if I could come back and help her with Life insurance sells. Her regional manager is hammering her to produce 6 life policies a month. Right now she is averaging at 1 to 2 policies a month only.

Her marketing strategy is only Everquote for Autos and Home then her staff pivots off these Auto quotes. She says she feels her current staff isn't doing enough pivoting/asking. The staff tells me they are but customers are saying it's too pricey. She says she is going to have to let her staff go if they can not meet the Life goals.

She gave me 350 list of customers in her book of business to call that may be likely to buy Life. So I called them up. I got alot of upset customers wanting to go over their premium increase bill that SF issued out on all customers due to inflation. So majority calls ended up turning to service calls. There were some that wanted quotes but probably because of the $20 dollar gift card SF is giving out this month. The ones that were actually needing to purchase didn't like the price. In my opinion the time to have offered these customers Life was when they first called in for Home and Auto. These customers are cold calls now. But atleast they know SF sells Life in case they didn't know.

The clients that ask for it are the existing SF customers that I have called up that already have Life thru SF and want to purchase more. Occasionally she will get current customers needing it at the last minute when a family member is sick or they may be purchasing a home, but it takes some time to decide if they can afford it. But these customers are still not enough to meet the quota. She is hoping I can coach her staff on how to ask for more Life but I think their doing an okay job as long as they can remember to ask everyone calling in for an Auto quote.

This agent by the way doesn't do any calling or prospecting because she says she's busy servicing her book of business. I believe this is why she's far behind. She wants to do the easier stuff instead of getting her hands dirty in sales. So that's why she wants me to be accountable for her life sales and wants me to report to her Regional manager.

Is this task worth me taking on, especially if she's not doing it herself? I feel she doesn't have any sells strategies, training or anything set in place. She just wants to throw me out there. She is wondering if she should purchase life leads but I don't know if that's going to help if State Farm is not competitive in Life insurance. I do know how to do social media marking/seo but if I'm going to do this, shouldn't I be doing this for myself independently?

My commission by the way is 3% percent of Life and P&C and if we can maintain the Life quota each month all products go up to 6 percent. I'm at $19 an hour. I really just wanted to focus on med supps and med advantage because thats half of agency's commission and get more into business for higher commissions as well but she won't let me right now because she really needs help in getting Life sales up right now.

Is it worth it to help her try and sell Life? As far as I can see the only way for her to get Life customers is pivoting potential customers calling in for Auto or Home. But thatsbthe reason I left last year because I got tired of general P&C.

I have 2 State Farm staff members sending me mapd and med sup business . They told me they don’t sell it . Ive been a State Farm customer over 30 yrs . Ive moved most of my cars away the last 4 yrs . There rates are atrocious to be honest and the last 18 months the rate increases are criminal . Both cars there have seen 60% 2 yr rate increases . I have 2 cars with American family that have seen 10 % total rate increases . I’d hate to be a State Farm agent as there making it hell on the agent . The young customer has no allegiance. What mapd and med sup carriers are you selling ? Ive read several times State Farm agents stopped selling any type of health ins . Many State Farm customers are affluent and Medicare would seem like a great fit .

 

[Txmade99]

I have 2 State Farm staff members sending me mapd and med sup business . They told me they don’t sell it . Ive been a State Farm customer over 30 yrs . Ive moved most of my cars away the last 4 yrs . There rates are atrocious to be honest and the last 18 months the rate increases are criminal . Both cars there have seen 60% 2 yr rate increases . I have 2 cars with American family that have seen 10 % total rate increases . I’d hate to be a State Farm agent as there making it hell on the agent . The young customer has no allegiance. What mapd and med sup carriers are you selling ? Ive read several times State Farm agents stopped selling any type of health ins . Many State Farm customers are affluent and Medicare would seem like a great fit .

Yep, I canceled my SF auto this year. They went up ridiculously high despite having no accidents. They told us to tell everyone it's due to inflation. We now have to call customers everyday and let them know their premium will be going up. Premiums are going up as much as $50 to $200 a month. And they are also getting rid of a lot of people. If you have as much as 2 tows in the same year you may get notice of nonrenewal. They are cracking down on all risks and everyone is having to suffer.

So I told her I will not be calling her book of business for life anymore...too many unsatisfied customers about the premium increase.

SF uses Humana for medicare advantage and I believe SF has their own Med Supp For all health products I would get $250 commission. However the agent is telling me not to sell yet until I can get Life sales up. I'm really not enthused by 3 percent commission for Life but she said something about her score card bonus and all that crap. She has not made any sales for medicare because she didn't have anyone to work it and because it's the least of her concern.

 

[DonP]

Yep, I canceled my SF auto this year. They went up ridiculously high despite having no accidents. They told us to tell everyone it's due to inflation. We now have to call customers everyday and let them know their premium will be going up. Premiums are going up as much as $50 to $200 a month. And they are also getting rid of a lot of people. If you have as much as 2 tows in the same year you may get notice of nonrenewal. They are cracking down on all risks and everyone is having to suffer.

So I told her I will not be calling her book of business for life anymore...too many unsatisfied customers about the premium increase.

SF uses Humana for medicare advantage and I believe SF has their own Med Supp For all health products I would get $250 commission. However the agent is telling me not to sell yet until I can get Life sales up. I'm really not enthused by 3 percent commission for Life but she said something about her score card bonus and all that crap. She has not made any sales for medicare because she didn't have anyone to work it and because it's the least of her concern.

So it must be up to the office wether they sell medicare or not it would seem .