Suckered into LibNat

[replic8]

I would like to begin my first post by saying what an awesome resource that this forum has been for me. I believe it is a strong testament to all of you who willingly share your experiences for the betterment of all and I am truly grateful to have access to this resource.

Now for my problem,
I have been working for LibNat for approx. 3 weeks. I just got off my second deployment with the Guard and relocated to a new area (Knoxville) and have a very limited network, which means that I had a hard problem finding a job. I have a BBA and was half way to completing my MBA. After a couple months of being unemployed I had to jump at the first opportunity that came my way... being LibNat. I was previously licensed in L&H from my last job which dealt with specialized tax planning. After my first week in the organization I quickly saw behind the curtain of the powerful OZ and am not pleased with what I have discovered, however, I see a huge opportunity to exploit in the process.

This office mainly goes B2B pumping the Cafe 125 plans and placing group term. The product doesn't seem that bad in comparison with the other offerings (Cancer vs. Aflac). Since there is such a strong push on the B2B it leaves the FE/WL market relatively untouched, especially in my area. What I am afraid of is killing myself for some commission only to know that I will be leaving after the first opportunity to join a better indy or major carrier.

I have since had 2 offers for interviews for NY Life, and also got an offer for Farm Bureau while on an appointment. I really like selling insurance and plan to eventually combine it with my other love of investing (long term plan). I am still in fact finding mode, and am wondering what the normal commission rates I should be looking for vs. what is borderline usury. Also, what else should I be looking for when going over terms of employment?

Since my training has been minimal to say the least (I found this forum after I took the job), I am curious to what the forum gurus have for advice for the optimal long term play in this situation. I don't look forward to placing policies and then trying to replace them with a better product down the road. I plan on staying in the area for a while and believe that what you are really selling is your name. How do I recover from this situation before I possibly do some damage to my future reputation etc...? I feel I have really turned a corner in terms of my selling skills and have not had a problem placing appointments lately and am looking to take the next "correct" step.

Because of this forum I have learned how to get into the door and set the appointment. I have also become better at delivery of message, and closing in the living room. Thank you in advance for all your help both past and present.

 

[STIBROKER]

I am sure Mark will be thru shortly to welcome you.....have fun.....

 

[2112Greg]

Section 125 plans are a dead end. Liberty National and all associated douchebaggish companies under the Torchmark banner are a dead end. If you're going the career path, NYLIC (since you mentioned it) would be about a bazillion times better than Torchmark anything.

That said, NYLIC (and all of the big players to some degree or other) has a very tough first year program that does ridiculous things like Project 100, 200, 300 or whatever hundred they are up to these days. They tend to chew you up and spit you out if you don't produce. Not criticizing them really, it's just how it is.

Don't know anything about Farm Bureau. I would generally rate my willingness to work for a company (I'm independent) in inverse proportion to how many ads they have on job boards. The more they advertise for agents, they more they are a revolving door.

 

[Norwayguy]

I would like to begin my first post by saying what an awesome resource that this forum has been for me. I believe it is a strong testament to all of you who willingly share your experiences for the betterment of all and I am truly grateful to have access to this resource.

Now for my problem,
I have been working for LibNat for approx. 3 weeks. I just got off my second deployment with the Guard and relocated to a new area (Knoxville) and have a very limited network, which means that I had a hard problem finding a job. I have a BBA and was half way to completing my MBA. After a couple months of being unemployed I had to jump at the first opportunity that came my way... being LibNat. I was previously licensed in L&H from my last job which dealt with specialized tax planning. After my first week in the organization I quickly saw behind the curtain of the powerful OZ and am not pleased with what I have discovered, however, I see a huge opportunity to exploit in the process.

This office mainly goes B2B pumping the Cafe 125 plans and placing group term. The product doesn't seem that bad in comparison with the other offerings (Cancer vs. Aflac). Since there is such a strong push on the B2B it leaves the FE/WL market relatively untouched, especially in my area. What I am afraid of is killing myself for some commission only to know that I will be leaving after the first opportunity to join a better indy or major carrier.

I have since had 2 offers for interviews for NY Life, and also got an offer for Farm Bureau while on an appointment. I really like selling insurance and plan to eventually combine it with my other love of investing (long term plan). I am still in fact finding mode, and am wondering what the normal commission rates I should be looking for vs. what is borderline usury. Also, what else should I be looking for when going over terms of employment?

Since my training has been minimal to say the least (I found this forum after I took the job), I am curious to what the forum gurus have for advice for the optimal long term play in this situation. I don't look forward to placing policies and then trying to replace them with a better product down the road. I plan on staying in the area for a while and believe that what you are really selling is your name. How do I recover from this situation before I possibly do some damage to my future reputation etc...? I feel I have really turned a corner in terms of my selling skills and have not had a problem placing appointments lately and am looking to take the next "correct" step.

Because of this forum I have learned how to get into the door and set the appointment. I have also become better at delivery of message, and closing in the living room. Thank you in advance for all your help both past and present.

First Step would be to dig out your current contract and read it...With some companies you do not vest in your sales so if you leave you could very well be charged back 100% of all advances even though the policies remain in force. So you need to know where you stand in that regard...

If you like B2B prospecting and lets face it the face 2 face home presentations are more difficult to get these days then NY Life may not be the place for you...I don't believe that have a Voluntary Payroll Life Product...

So before you get too hyped up about the company you need to think about how you want to prospect for business and then find the companies with the products to complement that.

I am a former NY Life agent (though I did mainly Annuities and Investments while there) It is a good company but like many of the captive mutuals underwriting is more strict than the brokerage channel and slower as well...10 years ago they didn't have anything to really go after the VPD market...

I have never worked with Farm Bureau...However I have heard of some agents in the south really doing well...I believe they do a lot of P&C.

You might want to visit www.topgunproducers.com Rick Blaine spends most of his time doing B2B life and disability sale.

 

[Mark]

Welcome to our Forum!

We are always glad to see new people on the forum.

 

[xrac]

First Step would be to dig out your current contract and read it...With some companies you do not vest in your sales so if you leave you could very well be charged back 100% of all advances even though the policies remain in force. So you need to know where you stand in that regard...

If you like B2B prospecting and lets face it the face 2 face home presentations are more difficult to get these days then NY Life may not be the place for you...I don't believe that have a Voluntary Payroll Life Product...

So before you get too hyped up about the company you need to think about how you want to prospect for business and then find the companies with the products to complement that.

I am a former NY Life agent (though I did mainly Annuities and Investments while there) It is a good company but like many of the captive mutuals underwriting is more strict than the brokerage channel and slower as well...10 years ago they didn't have anything to really go after the VPD market...

I have never worked with Farm Bureau...However I have heard of some agents in the south really doing well...I believe they do a lot of P&C.

You might want to visit www.topgunproducers.com Rick Blaine spends most of his time doing B2B life and disability sale.

I would talk to Farm Bureau! That could be a good gig. NYL would definitely be better than LN and would be in line with your interest in investments since NYL will want you to acquire a 6&63. Topgunproducers is a good resource.

 

[replic8]

Thank you for all the responses so far.

This forum has really been an eye opener. In terms of contract and commissions, LibNat takes 25% of the commission that you are supposed to get and sticks it in a commission account, then lets you draw from it at variable rates depending on the size of the account. This also is to serve as a buffer for cancellations of policies w/in the 1st year. As of right now I wouldn't be in to bad of shape if I left today even if they were to take back what they have paid me on commissions. After this week would be a different story since I do have some appointments lined up including an enrollment. I also have an appointment with the Farm B. contact that I will be talking to.

I also read in another thread to search Craigslist and found two other possibilities but am going to call them today while "dialing for dollars".

What are respectable commission breaks? I know that the structure differs with different carriers, but what is the spread that I should looking at for both the 1st year and the trailing rate? LibNat (WL) was 60% with an 8% trail on policies under 75k. Above it is 40% and 6%. Med Supps. were either a flat 10% or 12%, they were not really clear and it also depends on some other factors, but since no-one in the office does them no one can give me an answer. I am not overly concerned with getting the best of the rates, but I am not looking to get screwed over either.

I must admit as I type this I am not looking forward to going to the office today. It makes me sick knowing that I am going to see the fresh crop of "agents" that are about to be sacrificed to the machine.

Again, I appreciate all the sage advice and will keep you guys posted.

 

[Todd King]

.

What are respectable commission breaks? I know that the structure differs with different carriers, but what is the spread that I should looking at for both the 1st year and the trailing rate? LibNat (WL) was 60% with an 8% trail on policies under 75k. Above it is 40% and 6%. Med Supps. were either a flat 10% or 12%, they were not really clear and it also depends on some other factors, but since no-one in the office does them no one can give me an answer. I am not overly concerned with getting the best of the rates, but I am not looking to get screwed over either.

Wow! What low commissions! If an agent is creating or paying for their own leads (which I suggest), they should be getting 100%+. For med supps an agent should be getting 20%+ (except in the case of the Mutual of Omaha Companies). YMMV.

 

[replic8]

Is that based on Annual Premium?

 

[Fisher]

Is that based on Annual Premium?

Yes it is.

And by the way--

I just got off my second deployment with the Guard

--Thank you for your service.