Had an interveiw, is this a good deal?

Survivor · 09-17-2007, 05:15 PM

I searched for this company, but found little on it.

I had an interview with American General today. Well, more of an information gathering session. I met with the manager for about 2.5 hours and we had to cut it short because one of his clients showed up.

I explained my situation (with UA right now) and that I didn't really want to be captive again. He kind of sold me on the idea that being captive wasn't such a bad idea, at least with his company. I explained my #1 issue was that I didn't like my product. He showed me the product info, and then asked my opinion first from a consumer standpoint, then an agent standpoint. I was trying to poke holes in the product, but I honestly couldn't. So, that worry seems to be laid to rest. We talked training, and it seemed to be pretty solid. At least they have an office HERE where I can go for support. Apparently, I would be assigned a sales manager that is suppose to teach me. I asked him, "with my current experience (next to zero), what should I expect to make." He said it's very dependent on the person, but 46k is the company average for 1st year agents and his first year agents make about 40k in this area. (seems respectable... and I appreciated that I wasn't "promised" to make 75-100k my first year).

I asked for him to show me how I make money, on paper. Here is where I started getting confused, so hopefully you all can clarify as it didn't all sink in when he told me.
He said commissions are 100% of AP for first year, with 50% paid direct and 50% put in a pool. Then he said the sales commission was 45%, with about a 70% persistency bonus (I didn't quite grasp this concept, and had trouble connecting this with the 50% direct 50% pool idea). Then he said that 9% is paid weekly from your commission pool. Then he suggested that there COULD be increased earnings because that 70% persistency bonus is re-evaluated quarterly. One of the biggest pluses to me was that the company will pay me 500/week salary for 17 weeks, but will be dropped sooner if I "validate" my contract. He explained that he would fire me if I didn't do as I was asked while working for him because the company will make him pay back my salary if I don't work out. I do like that there is a real financial motivator for him to help me succeed.

I started to cringe, however, when he talked about my "natural market." I knew where he was going. I'm suppose to do "project 100" which entails getting 100 prospects, many of which are suppose to be friends and family. I really HATE this idea b/c I really don't like the idea of calling my aunt and saying, "Hey Aunt Janet, I know I haven't talked to you in a while but I just started working for this life insurance company and I would like to come see you, even though I haven't seen you in a year, and "practice" my presentation with you."

Despite the drawbacks, it sounds like a square deal for a newbie.

What do y'all think?
Is life and annuities too narrow of a market to be in when I could be doing this AND health with an agency. That is if I could find an agency to hire and train me as a new agent.

Thank you in advance for your help.

MHart · 09-17-2007, 05:25 PM

You are not going to find an independent health agency out there.

The only agency out there that hire health agents are UA and Mega.

American General is a respected company and one of the few that pay a salary. The reason you are struggling finding things on them it is also referred to as AIG. They are a big insurance company more popular on the auto insurance P&C side. I chose not to work with them because I feel personally health is easier to sell then life. So now I sell both as an independent agent.

Cenla Agent · 09-17-2007, 07:14 PM

Check your local area, there may be an agency out there although as MHart stated they are rare.

If you like the products you can be appointed with American General without being captive, although of course then you won't have the salary, training, etc. Going captive with American General basically entails giving up all of your other contracts unless management is going to look the other way. the Project 100 (if not 200) is standard for every captive sales organization I've ever seen.

Check out Professional Planners Marketing Group (PPMG) for life, annuities, LTC and disability if you want to stay independent.

coop · 09-17-2007, 07:21 PM

I think that being captive is the worst way to go in this business, why let one company tell you what to sell, their are tons of companies out their that you can get top contracts with and start making some serious $$$$ right away. not every client fits one company, but you can deliver every company to one client to fit their needs.

2112Greg · 09-17-2007, 07:29 PM

The only thing good about being captive is, well, two things, if you need it...salary and training. Given that you've just come off being held captive (like a monkey) with UA (I was there too, so I'm not making fun), you can see the expert training that they, no doubt, provided.

(note sarcasm)

Signing over your salary/commission also has a bad sound to me. I, personally, wouldn't do it.

One thing that amazes me to this day about being indy is the amount of support I receive from the companies that I write for. I'm sure the AIG guy tells you exactly what you want to hear, but being indy is not an 'all alone' kind of a thing.

And I HATE HATE HATE Project 100,200, whateverhundred. I would run screaming in the other direction if a company asked me to come up with such a thing. Not a chance in Hades...

Survivor · 09-17-2007, 11:44 PM

So... not a good idea?
Let's put it this way -- If I had to be captive, is this a good choice of company to be captive for?

I've only toyed with the idea of being independent. Most of my research as far as that goes has been on what companies would accept my appointment. I know I have to look into this myself, but what should I expect to pay for 500k of E&O as a brand new agent. I also need to check if my state (ga) requires me to maintain an office other than my home. I seem to remember reading something of this nature. That would definately count me out because I'ld have to sell like a mad man to be a able to afford the mortgage and all the associated bills and then office space and those bills - including a decent desk and other things that make an office an office.

James · 09-18-2007, 02:34 AM

Originally Posted by Survivor

So... not a good idea?
Let's put it this way -- If I had to be captive, is this a good choice of company to be captive for?

I've only toyed with the idea of being independent. Most of my research as far as that goes has been on what companies would accept my appointment. I know I have to look into this myself, but what should I expect to pay for 500k of E&O as a brand new agent. I also need to check if my state (ga) requires me to maintain an office other than my home. I seem to remember reading something of this nature. That would definately count me out because I'ld have to sell like a mad man to be a able to afford the mortgage and all the associated bills and then office space and those bills - including a decent desk and other things that make an office an office.

Sounds like they are offering a rather good deal if you believe the manager will carry thru with training. Going independent is great if you are self motivated and a quick learner, if not no matter how good of a contract you get as an idependent, I don't care if it is 100% or a 150%, if you can not sell for various of reasons it still boils down to the same amount, which is zero!

Being captive isn't that bad at all, esp. if you are with a company life AIG, check too see if you can sell all of AIG products as in benefits and the like.

SC Local LAH Agent · 09-18-2007, 08:55 AM

I seem to remember a friend saying he used to work with AG a long time ago. But he left due to not being able to meet his monthly Life sales quota. I would ask the manager about quotas.

bluemarlin08 · 09-18-2007, 09:00 AM

Get the names of every agent in that office and just ask them the questions. See if some of them are very successfull and if they would go on calls with you. The quickest way to learn this busines is by doing joint work with a mentor.

MIBizInsurance · 09-18-2007, 09:43 AM

Selling straight Life and Annuities is a tuff go with out a current book or prior experience.

The main way I know to earn a good living selling Life is Whole Life. To do this you need to market to the upper middle class and really the HNW crowd.

That 100-200 "friend list" will be burnt through quickly and then you need to prospect. Do you really want to tear through friends and family? Whats even worse is do you want your manager or other sales person bullying a friend to buy a policy?
What happens if you leave do you paln to go back to these people again?

As such ask the mang. how they prospect and expenses involved?

That 40k he mentioned as average earnings- How is that broke down in product sales?

Ask if you would be able to sell Home and Auto via AIG?

Speak with a couple current agents there.

How long has the manager been there?
How many of current reps are his and average tenure?

What expenses do they charge?
Laptop rental? Yes, some compainies charge a lease fee.
Software you have to buy? Leap
E&O?
Office rent?
Etc...

If you want/need a salary look into positions with commercial P&C companies as they offer salary and training also.

Good luck.

HomeService · 10-01-2007, 08:27 PM

I used to be with AGLA, the debit co. Now, when trying to apply for captive position at Aig/ Am General, it is tough sledding because I was there twice already and left, they do not want to re-hire people who have left . {twice} My fault, I guess.

Survivor · 10-02-2007, 10:49 AM

Why did you leave? What was your experience with them?

I was invited to the quarterly meeting last week. I went to it and I was pretty impressed with the operation. Most everyone there is in their 40s-50s, drive nice vehicles, and have experience. One fella even got a plaque for being w/ the company 35 years! A few people there had some pretty good careers before they moved over to AGLA. As far as the quota goes, they expect about 800 AP/week. That's about 67/mo/week. I think I can swing that.

HomeService · 10-04-2007, 10:46 AM

I am kicking myself for leaving. It was the best { or one of the best} jobs I ever had. That, and Mutual of Omaha. Two of the best. Basically, it was 1991 and I left the debit co. - limited income, limited territory. Left to go out and try my hand at "ordinary", wide open territory, wide open income potential. I was making very little money as debit agent, in 1991, still leading my staff in sales but it is very limiting, you have to have "growth of premium" over lapse, lapse of policies that you did not write, but were on the book before you even got there.

When trying the "ordinary" world did not work out for me- { I am kind of like the peson who thinks every thing out there in the world is against me, I probably should have stuck it out with AGLA or the ordinary co., pick one- stick with it} Well, then I went back to AGLA, and my boss got a promotion to the home office and I really liked him, and we got a manager I hated with a passion, and he hated me. Then I totally got out of the insurance business. Quit again. Had I stuck it out, that clown was fired not long after that. Well, I got my license back and brokered a bit since then. Never wrote much since.

Then AGLA got basically out of the debit world, and now it looks like a great opportunity, and the manager I had "problems with" is long gone, and I like this manager, and I am not hireable because of my past mind games I played with myself. Survivor, ask your manager for me please if he can get me in... if he has connections...ha ha { no seriously, I am going to try to get on there, I may write a letter, any suggestions on the letter, folks? }

Corporate Death · 10-04-2007, 08:52 PM

Hey HomeService, by "debit", do you mean the old Industrial Policies that AGLA had from the old days? The ones where you dropped by every month to pickup the premium payment?

Man, what an EASY way to schedule yearly reviews and increase their coverage regularly!

I left AGLA when I had a gun pulled on me in the project homes I was working in.

HIU#1 · 10-04-2007, 10:45 PM

Well, I started as a debit agent doing life in 1979. Over the years I've worked for P/C agencies both personal and commercial and I had my own agency at one point. NOTE: Best to have your financial ducks in a row before a divorce because a new agency isn't likely to survive if you hit that kind of a bump and mine didn't. So, I sold out again for a salary and benefits.

Today I own two independent health agencies, with one functioning as a General Agency doing brokerage. I've hired two people who thought they wanted to produce for our retail side, but try as we might, what they really wanted was a salary and benefits. Independent agencies do struggle with training people because unlike the captive carriers, we WANT the producer to stay and he/she probably won't long-term. The captive carrier plans for most new producers to one day move on because most do so they'll get what they can from each one while they are there.

Bottom line, each person is different. Some need a salary and benefits and work best in a structured environment. Others of us have that itch to call the shots ourselves and pay our own prices for the chances we take. Somehow it just works better for us, and because it does, we know we are likely to train a new producer and one of two things are probably going to happen.

1. Either they get too comfortable when what you need is production so you end up having to let them go or
2. They are go-getters and after you get them trained and they get the experience, they move on to having their own operation.

There are a lot of good training programs for new agents available like you are looking at. Just find out if you can trust the person you're dealing with (ask questions), and while you're at it, you might want to evaluate where you want to be 3-10 years from now before you go for something long-term.

It's a great business if you find the right place for you.

Good luck!

HomeService · 10-05-2007, 01:34 AM

Yes , I worked the debit, but they had converted the industrial weekly plans over to monthly. I collected monthly. You can still go to two companies here right now in 2007 and work the debit and still get a book and go for it. Reliable is one and American National is the other, still have debit agents, to this day.

HIU#1 · 10-05-2007, 09:37 PM

I wondered if there were any still left. Weekly premum, Monthly debit, Ordinary, does THAT bring back memories! It reminds of when I collected $.10 - to $.50 a week policy premiums. I've always said if you survive being a debit agent you can survive anything in this busines. thanks for the memories!

Cenla Agent · 10-06-2007, 02:31 PM

Originally Posted by HomeService

I am kicking myself for leaving. It was the best { or one of the best} jobs I ever had. That, and Mutual of Omaha. Two of the best. Basically, it was 1991 and I left the debit co. - limited income, limited territory. Left to go out and try my hand at "ordinary", wide open territory, wide open income potential. I was making very little money as debit agent, in 1991, still leading my staff in sales but it is very limiting, you have to have "growth of premium" over lapse, lapse of policies that you did not write, but were on the book before you even got there.

When trying the "ordinary" world did not work out for me- { I am kind of like the peson who thinks every thing out there in the world is against me, I probably should have stuck it out with AGLA or the ordinary co., pick one- stick with it} Well, then I went back to AGLA, and my boss got a promotion to the home office and I really liked him, and we got a manager I hated with a passion, and he hated me. Then I totally got out of the insurance business. Quit again. Had I stuck it out, that clown was fired not long after that. Well, I got my license back and brokered a bit since then. Never wrote much since.

Then AGLA got basically out of the debit world, and now it looks like a great opportunity, and the manager I had "problems with" is long gone, and I like this manager, and I am not hireable because of my past mind games I played with myself. Survivor, ask your manager for me please if he can get me in... if he has connections...ha ha { no seriously, I am going to try to get on there, I may write a letter, any suggestions on the letter, folks? }

I believe they still have service i.e. debit agents in some areas. Apparently it is similar to Monumental, which collects in some markets but has completely gotten out of it in others.

HomeService · 10-07-2007, 11:37 AM

Yes, AGLA still has a few service agents in my area. Now, Monumental on the other hand, I am not sure. They had an office here in my town and everything in the early 1990's. They had bought out I believe Washington National, had some pretty good books of business around here, then I believe they may have closed down the office around here, but I may be wrong.

christopherp552 · 10-08-2009, 03:20 PM

Any news on AGLA now?