Advice for a Newbie Starting in the Industry

MrExcitement · 10-25-2008, 02:15 PM

I just found this forum and I am absolutely enamored with it...Tons of helpful information and it seems like a lot of people willing to give advice, some of which I am seeking right now.

I am a recent college graduate of Florida State University living in Tampa, Fl. I decided that it was in my best interest to try and start out with a company as a captive agent, the company I settled on was the Farm Bureau. However, after hearing that I would be trying to sell more life insurance than I care to think about at the age of 23, I decided that the opportunity was not for me. However, I did acquire both property casualty and life, health and variable annuity licenses with the intent of one day going indy. After figuring out that I do not want to work with the Farm Bureau I decided to take a telemarketing job selling AIG supplemental health plans...which is about as cool as showering with your father...All kidding asside they were paying only a dollar per hour rate only and it is a terrible job. However even with all of the bad press I am still was able to sell about 2 or 3 policies a day, with all of the leads given to me. Recently I have aquired another position with AAA to sell auto policies over the phone which is a better position, however it is not the exact position that I would like.( I would much rather work for a broker to learn first hand)

But while working for AAA I would like to use my life, health and variable annuity licencese and sell health care policies over the phone since i have been successful with phone sales in the past. The crux of my question is this, can a newbie like myself become appointed with a carrier and learn enough in the carriers classes to effectivly sell the policies in my area. I would try to make sales after my shift is over at AAA everyday and I can work out of my house for the time being. At the same time I want to go about my buisness in the most ethical way possible, so I do not accidently misslead or decieve any of my potiental cilents because of my inexperience. Do you think that I need to have a lot of experience under my belt before I start to sell these policies? Any and all advice is greatly appreciated.

xosephchu · 10-25-2008, 10:28 PM

Quote:

Originally Posted by MrExcitement

At the same time I want to go about my buisness in the most ethical way possible, so I do not accidently misslead or decieve any of my potiental cilents because of my inexperience. Do you think that I need to have a lot of experience under my belt before I start to sell these policies?

I am glad you place your clients' interest before yours.

While it is important to learn as much as you can before you talk to anybody. The best way to learn is actually talking to your prospects or clients. That's where you learn about their concerns and what sort of questions they commonly ask.

It is okay if you are caught in the situations where you are not ready with the answers they are looking for. There are a variety of ways to handle such situations. Of course, the best is to be able to addrerss their concerns and answer their queries on the spot.

We always learn more being caught than being taught.

Franz Kafka · 10-26-2008, 12:19 AM

You seem very intelligent and dilligent for your age. Telemarketing position is a great way to get trained for this industry.

If I were you I would definitely get started with a career agency and MAKE SURE you get new agent financing.

I joined a career agency in my 2nd year and didn't get a dime because I made "too much" commission in my 1st year. So I now encourage every aspiring agent I meet to get that free money.

Find a career agency that allows brokerage work for other company insurances. Get that free money to pay the rent and start building your clientele without worries. JMO

MrExcitement · 10-27-2008, 05:10 PM

I appreciate all the advice so far. I was wondering now which companies should I contract with? I was thinking about Humana, Blue Cross Blue Shield, Etna, and possibly taking on a company such as Aflac for supplemental policies...Also I would like to add in addition to that John Hancock for life insurance and annuities... Let me know if there are some other companies out there that might be benificial to a person like me starting out. Once again thanks for all of the advice.

HomeService · 10-27-2008, 08:58 PM

The p&c companies are really pushing life insurance lately because it is more profitable than p&c. {I would presume that is why}

Anyhoo, that's all I want to sell is life, so should I look into farm bureau? Probably not- because I'm not into p&c....

MrExcitement · 10-27-2008, 09:48 PM

The issue that I foresee being a problem in the future is being able to service my clients only between the hours of 5 and 8 pm...Would this be a major issue in selling insurance for myself after my shift is over? AAA will be able to give me one day a week off per week so I figure I might be able to set all of my appointments for that day during the week. Could I transact my business out of my home with a fax machine and computer? Please let me know what you all think...

moonlightandmargaritas · 10-27-2008, 10:37 PM

Quote:

Originally Posted by HomeService

The p&c companies are really pushing life insurance lately because it is more profitable than p&c. {I would presume that is why}

Not really. P&C companies are cash machines. Think of all that premium coming in! And all on a regular basis...

The reason they like life insurance is because it is a much more predictable product claims wise.

HomeService · 10-28-2008, 01:17 AM

mr excitement: AAA is not captive?

MrExcitement · 10-28-2008, 01:42 AM

AAA is captive absolutely, but they do not sell Health and Life products, so therefore I would not be in competition with them if I chose to sell Health and Life products on the side. I figure that they might make me sign a no compete clause in my contract as far as P&C but I would assume that they would care less about Health and Life. I am working in telesales for them at a call center so they may or may not have me sign a no compete clause. We shall see what they do because Friday is my first day on the job. Stay tuned...
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My main question right now is can I still sell health insurance while I am working a full time position. I will be able to call from 5pm to 8pm here in Florida everyday after work and I will be given one day a week off to where I can service the clients...Do you think this enough time to be able to service the clients? I hear a lot of people talking about how they will do everything electronically these days with emails and faxes and will service out of state clients. I know how to sell over the phone from my job at a call center selling AIG supplemental insurance policies selling two to three per day. Please let me know if you think that I might be able to both service the clients and prospect new ones three hours everyday after work and all day one of the days of the week. I know its not the best of choices but I really see that I have no other options at this moment. I would like to start building a book of business so that in a year or two I could possibly move out on my own. I am in the midst of designing a business plan which i will detail on this website for other to critique...Please let me know what you all think.

robliano · 10-28-2008, 11:05 PM

Selling between those hours are statistically better for health insurance.

Quote:

Originally Posted by MrExcitement

The issue that I foresee being a problem in the future is being able to service my clients only between the hours of 5 and 8 pm...Would this be a major issue in selling insurance for myself after my shift is over? AAA will be able to give me one day a week off per week so I figure I might be able to set all of my appointments for that day during the week. Could I transact my business out of my home with a fax machine and computer? Please let me know what you all think...

MrExcitement · 10-29-2008, 12:32 AM

Well that is what I intend on selling is health insurance, maybe narrowing my focus to just health insurance alone. However I do want to be signed up with supplemental and life insurance carriers because all the time when I am on the phone people ask for Life Insurance so I want to be able to make an easy sell if the opportunity presents itself. But the bulk of my sales that I expect to make will be off of cold calling and maybe a few internet leads, I fully intend on working them hard and often...I fear no phone and no business owner...

mnmjski · 10-29-2008, 12:49 AM

Do like many of my competitors and P&C agents who decide to dabble in health & life...find a good GA with several carriers and start quoting. You don't need to be appointed, just licensed. An expert health agent will chew you up, but you'll get your fair share. Start by learning one carrier very well like BC/BS.

MrExcitement · 10-30-2008, 12:20 AM

So what would be the advantage of going with a GA right now rather than just going straight with a carrier such as BC/BS? Wont a GA just skim my commission? Would it be better to just cut out the middle man and just go take that classes that are offered by carriers and try to sell from there? I know that there is probably a lot I am missing but maybe someone could fill in all the blanks for me. It would be much appreciated. Thanks!

mnmjski · 10-30-2008, 02:13 AM

Quote:

Originally Posted by MrExcitement

So what would be the advantage of going with a GA right now rather than just going straight with a carrier such as BC/BS? Wont a GA just skim my commission? Would it be better to just cut out the middle man and just go take that classes that are offered by carriers and try to sell from there? I know that there is probably a lot I am missing but maybe someone could fill in all the blanks for me. It would be much appreciated. Thanks!

Some carriers wont let you go direct unless you have a lot of business with them and a good GA wont "skim" your commission as they get an override. As a new agent, you can get quotes and service with several different carriers through 1 GA or contact each carrier direct and have multiple sales reps and contacts. Think about it...do you think a company like BC/BS or Humana will really care about a few accounts you write with them? Combining your business with a GA combined with all their business will give you more pull when you have to negotiate that renewal increase.

TMan603 · 10-31-2008, 12:56 PM

I'm currently a licensed agent with BCBSF and to be licensed with them it does have to be through a GA.. In addition they take a decent amount off the commission as well.

There are some perks to working with a GA, with mine any how, they provide quality leads, an office to work out of if you need one, and commission annualized.

On getting licensed with other carriers (Humana, Aetna, & UHC), I'm assuming your doing individual health products, you can get directly licensed with them. Individual health is techically a "one time sale" and their rates are set by the states they reside in. Hence you don't need a big book of business to negotiate rates.

kwimberl · 10-31-2008, 05:03 PM

The hours you are talking about should work fine for starting out. Your biggest issue will be figuring out how you will market.

As for the question of direct vs going with a GA: I would recommend going with a reputable GA that will help you get setup with the carriers you need, get advances, and not lose any commission over what you would have gotten going direct. In some cases, the GA will offer some training in addition to the carrier training. MAKE SURE you get an upfront release (prenup).

For FL, you need Humana, Aetna, GR / UHC, and maybe Avalon. BCBS is a difficult (and behind the times) beast in FL for an independent. Some GA's will try and get you to get appointed with Assurant but don't even bother as they are nowhere near competitive in FL.

moonlightandmargaritas · 10-31-2008, 05:13 PM