Do you independent guys ever do worksite?

Survivor · 11-01-2007, 06:14 PM

I went out of town today to go handle some existing accounts that were no longer maintained by the agent that brought the business. It seemed that every other place of business there was an insurance agency. I wondered how we even got those accounts with all those agents living there.

Do most independent guys even try and set up payroll deductions or 125s? Why or why not?

This was my first time hitting worksites and it seemed too easy. I know that these were existing customers, but I reveiwed existing policies with 7 people and ended up writing 5 apps just from those folks.

It seems to be too rewarding not to be doing it.

I'm also wondering how most of you (that dable in worksite) are approaching businesses on voluntary benefits. My company has its own philosophy, but I'd like to see what else is working.

al3 · 11-01-2007, 06:24 PM

Who are you writing for? Colonial? Aflac?

Where are you located?

Al

Survivor · 11-01-2007, 10:35 PM

Originally Posted by al3

Who are you writing for? Colonial? Aflac?

Where are you located?

Al

american general

Georgia

2112Greg · 11-01-2007, 11:03 PM

I don't personally LOOK for it, but I probably wouldn't turn it down if it hit me in the face (most likely). However, I'm not really sold on the concept, frankly...I mean, it's a good idea, I just think it's often more trouble than it's worth - it's a load of paperwork for little policies for business that doesn't stick for long.

It's just been more of a headache than anything...

I've also found that a LOT of smaller companies have had bad experience with worksite plans. At some point, some company offering worksite has burned through there and they probably have 2-3 different agents trying to service them and the company found it was more trouble than it was worth. I've heard this from a lot of small business owners...

Just my opinion...maybe it works for some indy guys/gals...but not for me.

al3 · 11-01-2007, 11:25 PM

In our area of Sacramento, CA I find that most businesses of 15 or more have a favorable impression of voluntary supplemental benefits. I write for Colonial but I don't do it full time only because as the previous poster said, it is a long sales cycle and unless you hit a whale, there is not a huge amount of money to be made given the time it takes to sell, write, and service the business.

However, if you run into a group that you want to bid, it's nice to have worksite benefits as part of your sales kit. Colonial does a fair amount of work with large(er) brokers who have groups of 50, 80, 100 or more and if you can get a strategic alliance with a few of those a lot of the effort is done for you. True you have to give up a fair amount of commission but what is left is still rather substantial for simply having the broker introduce you and going in and enrolling.

A big problem in my area is... and I don't mean to knock them... Aflac. They have burned through a lot of agents... and keep hiring more who call on the same groups time after time. Also, the turnover has hurt client service. So when I come along and try to sell Colonial (as the 'better' Aflac) I sometimes get a cold shoulder.

That said, if you look at the dynamics of the economy, major med and other expensive employer paid benefits are rising far faster than the costs can be absorbed. Thus a lot of groups are seeing the benefit of offering lower cost plans... meaning higher deducts... and using worksite benefits to fill in the gaps for those employees who which to take advantage of good coverage a very low 'national' group rates... and these benefits are portable as well.

Al
InsuranceSolutions123 Agency

David C · 11-02-2007, 09:25 AM

Survivor,

What part of Georgia?

HomeService · 11-02-2007, 10:01 AM

There has been a move to 125 by many companies lately since they all saw AFLAC having success. Am General is one of them, so is UA. They gravitate towards it , because they saw how they could get 20K annual premium in one sale instead of $800.

The problem is, you could go weeks presenting them and then maybe get one every two months or so, so you have to fill in the time with individual sales, and some agents just chase the big premium only and lose sight of the households.

The one company that I have seen that really does a good job of 125 stuff is Colonial. They were around before the AFLAC duck commercials, and are still around, and will be around through all the fads out there, still doing their thing. It is trendy, or fad-like, to jump into worksite - for some of these other insurance companies.

Yes, there have been independent agencies who concentrate on benefits and groups, who have been around long before the fad.

happy · 12-19-2007, 12:31 AM

Survivor,

What is the average premium for each application? I've been thinking of selling voluntary employee benefits with American General by being a special rep and not captive. Because if I can write 5-10 apps from one company, I think it will be worth the time and effort.

Are you captive or independent?

James · 12-19-2007, 02:06 AM

Originally Posted by Survivor

I went out of town today to go handle some existing accounts that were no longer maintained by the agent that brought the business. It seemed that every other place of business there was an insurance agency. I wondered how we even got those accounts with all those agents living there.

Do most independent guys even try and set up payroll deductions or 125s? Why or why not?

This was my first time hitting worksites and it seemed too easy. I know that these were existing customers, but I reveiwed existing policies with 7 people and ended up writing 5 apps just from those folks.

It seems to be too rewarding not to be doing it.

I'm also wondering how most of you (that dable in worksite) are approaching businesses on voluntary benefits. My company has its own philosophy, but I'd like to see what else is working.

B2B, face to face! Walk in this week, next week, next month promoting all kinds of benefits. Yet, I find the idea of Transportation and Child Care via 521 Plans create most buzz to begin with. Most know these plans are out there but, don't know they can take advantage of them in small groups.

Survivor · 12-19-2007, 06:06 PM

Yeah, I've got to look into the 521s.

Happy:
I think the 5 apps was a little over 1800/AP. That's not bad for me.

Now, to update this:
Of those 5 apps, only 2 ever issued.

One was declined (25/yo gal with a couple issues). I was pissed that they didn't even try to rate it and come back.

One, the lady called me up and said she didn't want it anymore. I have a feeling that she told her husband she got more coverage and he told her to cancel because "they had enough insurance" or something like that.

One, the lady kept dodging the paramed. I got a daily report on from the paramed company emailed to me on their efforts to get in touch with her. I even called and talked to her, and she kept dodging and dodging it. I finally told the Paramed company that she's probably gone and done some drugs or is afraid of finding out she has something so to just forget about it altogether.

So, of that 1800 AP, only around 800 ever issued. I guess this affirms the "more trouble than it's worth" ideas.

Martian · 12-19-2007, 06:45 PM

I do work site with Aflac, and I'm an independent. The money is there, but you should have something else to fall back on such as the direct market because sometimes it could take a bit to close down a deal and you have to eat between.

AGLA does a good job though from what I understand they don't touch accounts under ten with Section 125's. Plus they charge for them after the first year, Aflac does it for free for the entire duration that a business is active, and even then the Sec 125's are generic so as long as they don't add something totally new, such as something not on the orginal paperwork (they can switch providers though), they are in compliance.

If you like AGLA and are making good money, then keep it going. If you want to expand outside you can go with Aflac or Colonial and then get appointed to other companies that do Health or straight up life stuff.

Survivor · 12-19-2007, 07:22 PM

Originally Posted by Martian

I do work site with Aflac, and I'm an independent. The money is there, but you should have something else to fall back on such as the direct market because sometimes it could take a bit to close down a deal and you have to eat between.

AGLA does a good job though from what I understand they don't touch accounts under ten with Section 125's. Plus they charge for them after the first year, Aflac does it for free for the entire duration that a business is active, and even then the Sec 125's are generic so as long as they don't add something totally new, such as something not on the orginal paperwork (they can switch providers though), they are in compliance.

If you like AGLA and are making good money, then keep it going. If you want to expand outside you can go with Aflac or Colonial and then get appointed to other companies that do Health or straight up life stuff.

I like AGLA, but then there are some things I don't like. I soooooo wish I had a major medical to sell, because people always ask me about it. I'm actually a little behind on my contract validation (only about 1000 AP), but that is going to get deeper because I know nothing will be written next week. If I don't validate my contact, I can only make money on what I submit (as in no commission pool to get paid from), and only get a commission with no bonus. I'd have to write like 1500/wk just to get by in that case. I can honestly say that I don't expect to write 1500/wk. Maybe 1000-1200/wk. So, if I don't validate here, I will probably just go back to a "real" job and get appointed with a couple of companies and try to sell on the side to at least leave the option open of getting back in the business.

arnguy · 12-20-2007, 04:27 PM

James, I am confused. You refer to Child Care and Transportation spending accounts as Sec. 521 plans. Sec. 521 of the Internal Revenue Code is titled "Exemption of Farmer's Cooperatives from Tax." However, Sec. 132(f) IRC refers to the "Qualified Transportation Fringe" and sets forth the regulations therein. "Dependent Care Assistance Programs" are addressed in Sec 129 IRC. And Health Care Reimbursement Plans (HRAs)are covered in Sec. 105 IRC. Where does Sec. 521 IRC come into play?

Martian · 12-20-2007, 08:53 PM

Arnguy I believe that was a little dyslexia on his part 521 backwards is 125.

Survivor I had 3,200 in AP come out of an orphaned account I found today.

Survivor · 12-21-2007, 01:02 AM

Originally Posted by Martian

Arnguy I believe that was a little dyslexia on his part 521 backwards is 125.

Survivor I had 3,200 in AP come out of an orphaned account I found today.

Not too shabby for an orphan!

James · 12-21-2007, 01:21 AM

Originally Posted by arnguy

James, I am confused. You refer to Child Care and Transportation spending accounts as Sec. 521 plans. Sec. 521 of the Internal Revenue Code is titled "Exemption of Farmer's Cooperatives from Tax." However, Sec. 132(f) IRC refers to the "Qualified Transportation Fringe" and sets forth the regulations therein. "Dependent Care Assistance Programs" are addressed in Sec 129 IRC. And Health Care Reimbursement Plans (HRAs)are covered in Sec. 105 IRC. Where does Sec. 521 IRC come into play?

Yea, what the martian said! Dyslexia, hummmm, if I didn't have enough problems now I have to overcome dyslexia!

2112Greg · 12-21-2007, 01:26 AM

Alright Martian...nice job!

Martian · 12-22-2007, 02:17 PM

Originally Posted by 2112Greg

Alright Martian...nice job!

My regional manager was "asked" to step down and a new one was promoted as of January 1st. The new one has not started officially yet but now I suddenly have orphaned accounts that I found months ago assigned to me. That was one of them...

arnguy · 12-22-2007, 02:56 PM

Thanks for the clarification, Martian. I had suspected that it may have been dyslexia after I posted, but the benefits James stated are addressed in Sections 132(f) and 129 of the code. Section 125 deals with "cafeteria plans" and FSAs, not Transportation and Child Care.

Martian · 12-22-2007, 04:29 PM

Because Section 125 is part of the tax code that we deal with, and many agents don't know the name of the entire part, they tend to call the entire code section 125. It's a common mistake.