How Do I Choose a Specialty?

scwisher · 09-26-2009, 11:51 AM

Hello and thank you for reading my post.

I am ready to begin the process of obtaining my license and I am befuddled by choices!

I live in NJ and it seems pretty clear that selling health insurance in my home state will be like beating my head against the wall. Should I obtain a license in a different state? Can I do that without being licensed in my home state? If so, is there a particular state or states that are under-served or seem to have more demand?

I have been reading quite a few posts in this forum and feel confident that health insurance is the way to go. It's too bad I live in a guaranteed-issue state, but it seems that may not matter, if I seek a non-resident license elsewhere. NJ's Dept. of Banking and Insurance website is not very helpful to someone who doesn't know what they're doing.

On the other hand, perhaps I should pursue Life or P&C. I'm not sure how to make that decision, short of asking people like you who have expert knowledge in each of these fields.

Thank you in advance for your help.

GonnaFlyNow · 09-26-2009, 01:21 PM

First choose between either:

Property and casualty

OR

Life/health

That's the most important decision to make right now.

You do have to be licensed in your state of residence first.

Don't choose a "specialty" until you've been licensed at least a year or two.

You won't know what you enjoy until you've learned more.

Your "speciality" should be the product area that you enjoy the most and that you believe in the most.

Clint · 09-26-2009, 01:40 PM

Here are a couple links

NJ Licensing info: Producer Frequently Asked Questions

NJ license FAQ's: Producer Frequently Asked Questions

DHK · 09-26-2009, 02:52 PM

There's a combination of choices to make.

I would not arbitrarily choose a product line without knowing WHO you are going to market to.

If you have a large enough market with a great process to put people through, you'll have a sustainable business.

scwisher · 09-26-2009, 07:11 PM

Originally Posted by GonnaFlyNow

first choose between either:

Property and casualty

OR

Life/health

Thanks for responding.

In NJ, Life exam and Health exam are separate. Does that mean the licenses will be separate too? Again, with NJ being a guarantee-issue state, won't it be difficult for me to sell health as a brand new independent? It looks like IHIAA will be a lot of help, but will it be enough for a noob like me?

I haven't seen as much support (so far) for brand new life insurance agents or property/casualty. Reading posts on this board makes me think working for an agency is a waste of my time. Besides, I need to keep my day job for a while. Any advice/help is greatly appreciated!

healthagent · 09-26-2009, 07:16 PM

If you choose health you will indeed need to sell in other states but before you pull the trigger you'll need a marketing plan...and a realistic one. Are you going to buy leads? Drive traffic to your site? Telemarket? Far too many agents pull the trigger before mapping everything out.

All that said, selling health online is arguably easier than selling life online - unless you just want to sell term.

scwisher · 09-26-2009, 07:24 PM

Originally Posted by DHK

There's a combination of choices to make.

I would not arbitrarily choose a product line without knowing WHO you are going to market to.

If you have a large enough market with a great process to put people through, you'll have a sustainable business.

To be quite honest, I was planning on purchasing leads for whatever line I get licensed for in my home state to start. Then I was planning on adding other lines so I could be more comprehensive in my offerings. Finally, I plan on obtaining licenses in other states and branching out that way.

NJ has 8.5 million residents so I figured size of market would not be a concern. As for a great process, well, I don't have that part figured out yet. I WAS thinking Pajama Man, but now I think maybe that's a bad idea. There's always Rob Liano, but I haven't contacted him yet! Not sure if he wants to talk to someone who's not even licensed yet.

Any further guidance you can offer is vastly appreciated!
- - - - - - - - - - - - - - - - - -

Originally Posted by healthagent

If you choose health you will indeed need to sell in other states but before you pull the trigger you'll need a marketing plan...and a realistic one. Are you going to buy leads? Drive traffic to your site? Telemarket? Far too many agents pull the trigger before mapping everything out.

All that said, selling health online is arguably easier than selling life online - unless you just want to sell term.

Thanks for responding. Yes, I plan to primarily purchase leads as I will be attempting to start off part time and I don't want to waste too much time finding leads. If I had some help getting a site built, I could work on tweaking that and driving traffic to it.

Could I even get my feet wet selling health in NJ this way? Or can I get licensed in other states immediately after getting my NJ license? I don't mind spending a little money up front to get started, I practically had my checkbook out to send the Pajama Man $5,000 to get this sort of information! But now that I found you knowledgeable people here, I am hoping to navigate my way to success!

I really appreciate you folks taking the time to help me out.

Tom Highway · 09-26-2009, 08:49 PM

I've often wondered something about this. If you get your life and health license, should you be a generalist, or should you really specialize?

Let me explain a little further. Right out of the gate, I was a financial advisor, and I have my series 7, series 66, and my life and health license. I did it all, but mainly focused on investments and bonds. That did not work.

Lately, I've been focusing on MA/Med Supps (hopefully a LOT more med supps than MA as I get through AEP) and final expense. I have the opportunity to do both of these, in addition to cancer insurance and long term care insurance to individuals and to businesses.

I think this is getting too spread out, and won't let me really focus on one thing.

So, is it better to take a couple of things, like the med supps and FE, and focus on those two and become proficient at all aspects of it, or is it better to diversify into all these differents things to sell, and spread your risk?

healthagent · 09-26-2009, 09:19 PM

Originally Posted by scwisher

Thanks for responding. Yes, I plan to primarily purchase leads as I will be attempting to start off part time and I don't want to waste too much time finding leads. If I had some help getting a site built, I could work on tweaking that and driving traffic to it.

Could I even get my feet wet selling health in NJ this way? Or can I get licensed in other states immediately after getting my NJ license? I don't mind spending a little money up front to get started, I practically had my checkbook out to send the Pajama Man $5,000 to get this sort of information! But now that I found you knowledgeable people here, I am hoping to navigate my way to success!

I really appreciate you folks taking the time to help me out.

Well....$5,000 buys a lot of leads - at $7 per lead average that's 714 leads. Although it's easy to argue that if you don't know what you're doing buying leads is a waste of time.

But yes, once you get licensed you can go to a site like National Insurance Producer Registry and get licensed in almost any state online.

Here's your timeline:

1) Get your license

2) 3 to 4 weeks later you should have all of your appointments. During that time it should be intense study on your products and underwriting guides

3) Buy leads once you're trained and appointed - about 2 full weeks of buying leads to build your pipeline

4) Start submitting business around 6 weeks after you've received your license, then deals have to be approved and you have to be paid.

It's around 6 to 8 weeks from the time you're licensed to the time you'll receive your first commission.

Part time does not work. I would not recommend it but that's up to you.

scwisher · 09-26-2009, 10:10 PM

Originally Posted by healthagent

Part time does not work. I would not recommend it but that's up to you.

Are you saying that I cannot be successful if I only work nights and weekends? And does that apply only to health insurance or to being an insurance broker in general?

I do not expect to make $60k in 6 months. I expect it will take some time before I can build a book of business that would support that level of income. If I could build up a cash cushion and a book of business supporting that level of income, I could afford to quit my day job and go full time.

My goal is to be able to work from home as an independent broker providing insurance solutions to people who need them. If I can help cut through the jibberish and explain options to people in plain language, I believe I can succeed...and sleep at night.

Am I going about this the wrong way already?

DHK · 09-26-2009, 10:29 PM

Originally Posted by Tom Highway

I've often wondered something about this. If you get your life and health license, should you be a generalist, or should you really specialize?

Tom,

I'm very much like you. I also was securities licensed as well as life/health, etc. My securities licenses are no longer with a firm and I'm going into just life insurance-based products.

For me: Life, Disability, Fixed & Index Annuities, Long Term Care, critical illness and (if it comes up) group insurance - including health and insurance-based company sponsored retirement plans (non-registered), and Pre-paid legal.

Now, that may not sound like a "specialist" way to do business. My specialty is people, not products.

My job is to help people solve problems within their financial situation.

My strategy: Help them find the money TODAY to live a better life for the future.

My goal is to focus on the person in front of me and help them build a better life. I can do that through various products and strategies, but that is my focus.

I keep to a simplified process with each client and then begin to work with that client to help them solve the problems or gaps they said they had in their financial affairs.

If investments came up, I have an old business partner I would refer them to and have absolutely no worries or concerns about his recommendations.

I don't know if that helps or not, but that's the way I think about my practice.

(My main products are life & annuities though.)

eric rose · 09-26-2009, 10:50 PM

Scwisher,
The specialty question is one I struggle with as well. I do a little bit of everything life, health, investments, and even p&c. I'll give a plug to John and IHIAA as I am a member and have found membership to be worth considerably more than the price of admission.
If you are just starting out, there are a couple of captive life companies that will let you write health with your own contract. They will train you (life only) and pay you a salary in the beginning, and you can learn the health from John or Rob on your own time. Learn the business and then you can decide where to specialize. It's too early in the game to make an educated decision.
I'm in Jersey so feel free to email me if you need help. It's an amazing business to be in but there are a lot of potholes to look out for.
Eric
EricR962@aol.com

DHK · 09-26-2009, 11:20 PM

Originally Posted by scwisher

NJ has 8.5 million residents so I figured size of market would not be a concern.

How many can you approach in a favorable way?

Even the best leads can become worthless if not handled well.

You will need to narrow this number down.

I know you'll be purchasing leads. You'll need to know how those leads were generated and who else they are distributed to. You will need to know your cost for the LIST of leads compared to the results that you get from the list. It's too easy to say that a lead cost $1 and you made $400. But if the list cost you $500 and you made $2,000, it cost you $.25 for each $1 you earned.

Just some additional thoughts for you.

Amber Scherloz · 09-27-2009, 02:48 AM

I think it is difficult to get involved with more than 1 kind of insurance. I find selling various kind of insurance difficult than focusing first on one kind.

scwisher · 09-27-2009, 03:40 PM

Thanks for your input so far everyone.

Would you recommend for a newbie like me to take and pass each exam and then apply for the license with all endorsements in one shot (time permitting)? Or should I just start off with one, say health, and work that for a while before taking on additional areas of licensure?

DHK · 09-27-2009, 04:39 PM

I would get your Life, Health & Accident licenses all at one time. It's not that big of a deal - well, at least here in California.

I wouldn't add any securities licenses for a while (if ever).

mousidd · 09-29-2009, 07:47 AM

I've really noticed that people are more comfortable if you specialize in one thing. Build your network while you're keeping your day time job. You'll soon start getting more work than you can handle and finally have to give up that day time job. All the best!

Frank Stastny · 09-29-2009, 08:24 AM

Originally Posted by Tom Highway

I've often wondered something about this. If you get your life and health license, should you be a generalist, or should you really specialize?

Let me explain a little further. Right out of the gate, I was a financial advisor, and I have my series 7, series 66, and my life and health license. I did it all, but mainly focused on investments and bonds. That did not work.

Lately, I've been focusing on MA/Med Supps (hopefully a LOT more med supps than MA as I get through AEP) and final expense. I have the opportunity to do both of these, in addition to cancer insurance and long term care insurance to individuals and to businesses.

I think this is getting too spread out, and won't let me really focus on one thing.

So, is it better to take a couple of things, like the med supps and FE, and focus on those two and become proficient at all aspects of it, or is it better to diversify into all these differents things to sell, and spread your risk?

You know that I now only work the senior market. In past years I have worked the underage market also but my main focus was always the senior market.

There are two products that go together and fit like a glove, Med Supps and FE. Final Expense is much easier to sell using the money the agent saves his/her new client on the Med Supp and then use that money to pay for the premium for the FE. The new client isn't using any "new" money to pay for the FE insurance. It makes the FE sale very smooth.

LTCi and annuities also are a natural in the senior market but in my opinion only for cross selling, not as products to prospect to sell. I tried to prospect for LTCi and although I sold a lot, in the long run it was too time consuming and dramatically reduced my Med Supp sales and my long term income. Med Supps are an extremely good "bread and butter" product.

I would suggest that an agent concentrate on Med Supps and look for opportunities to cross sell everything else.

Full Throttle · 09-29-2009, 05:24 PM

One piece of advice I heard that makes a lot of sense to me, if specialize in a market, not a product. It sounds like that's exactly what Frank does, but there are many options besides the senior market. If you specialize in working with a certain demographic that you can get in front of consistently on a favorable basis, you'll get good at meeting their needs. If you are working many differnet groups of people, odds are you will leave a lot of money on the table and spin your wheels constantly needing to learn new information to serve each market effectively. Many different markets to pursue, the key is consistently getting in front of them of a favorable basis.

maksim · 10-06-2009, 01:23 PM

Take them all at the same time.