Insurance Agent Forum

[backinthebiz]

A lot of the big captive companies like New York Life, Mutual of Omaha, etc. pay a training subsidy or allowance during a new agents first few years with the company. That's really important to someone who is making a transition from a regular paycheck. Anyone know the details on these allowances?

[xrac]

Originally Posted by backinthebiz

A lot of the big captive companies like New York Life, Mutual of Omaha, etc. pay a training subsidy or allowance during a new agents first few years with the company. That's really important to someone who is making a transition from a regular paycheck. Anyone know the details on these allowances?

Metlife, American General, Monumental, and Western Southern pay a training salary but it is only for a few weeks and pretty modest except for Metlife. Metlife will pay up to $1,000 or so depending on previous earnings. I do not think that NYL or the others do so unless it is something arranged by the MGA. The stark truth is the statistics are that less than 1/3 of those who start in life sales are still there two years later and only about 9% make it a long term career. These are LIMRA's numbers.

[Tomfromtheshade]

I took the Limra test and scored a 15 out of 19, and they said that I had a 45% better than average chance of making it in the business...which still only gave me like a 1 out of 3 fighting chance to make it lol.

I know that Mutual of Omaha has what is basically a salary, as long as you hit your monthly numbers, which can be as high as $4,000 a month in the first 90 days you are there. Then it goes down to something like $3000 a month in your second quarter and then down to about $2400 a month in your third quarter.

Prudential used to have a $36,000 salary, which gets you about $500 take home a week for their FSA program. However, I found the training at Pru deplorable in the office that I worked out of. Prudential can be good if you already understand the business and you know what you are doing and you just need them to pay your salary and your licensing, but I found out the hard way that it is not a good place to learn the business from the ground up.

Other than that I don't have much else to add.

[backinthebiz]

Wow Pru sounds pretty good... besides the deplorable training. Hopefully it's not like that at every office.

[Norwayguy]

Originally Posted by backinthebiz

A lot of the big captive companies like New York Life, Mutual of Omaha, etc. pay a training subsidy or allowance during a new agents first few years with the company. That's really important to someone who is making a transition from a regular paycheck. Anyone know the details on these allowances?

Its been about 9 years but the way it worked at NYL was the subsidy was additional commission on sales if you hit certain numbers, If you missed your numbers one month you didn't get the subsidy and had to make up the missed amount cumlativly every month before the subisidy kicked in again. If your concerned about a 100% commission position this might not be the career for you...Oh I spoke with Met at about the same time and the manager said how their salary worked was before he would appoint me I would run dual appointments with him until I racked up $5k in a house account (ie I don't earn anything during this time) then they would appointment me and the 5K would be paid out over 10 weeks during the 10 weeks I was filling up the account again and that would be paid out over 10 weeks...not sure if every office works that way...I got real nervous when I found out my manager had spent 100% percent of her time in the home office working on Mets LTC product and had never made a sale as an agent...

[Michael Allevato]

I want to begin a career with Mutual Of Omaha. Ate they a good company?

[medicarebenefitsdirect]

Originally Posted by Michael Allevato

I want to begin a career with Mutual Of Omaha. Ate they a good company?

Yes, they are a great company. However, I would suggest going independent so that you can write other companies as well.

[Michael Allevato]

I have never sold insurance, shoul'nt I start as a captive first

[Broker007]

Personally, before I entered into the business I went to my local small bank and applied for a small business loan. To make a long story short, after loans and grants I received $30,000 dollars to start my career. This was nine years ago however, don't know what the hell banks do these days.

[DNK-]

Originally Posted by backinthebiz

A lot of the big captive companies like New York Life, Mutual of Omaha, etc. pay a training subsidy or allowance during a new agents first few years with the company. That's really important to someone who is making a transition from a regular paycheck. Anyone know the details on these allowances?

NYL will pay a TAS (training allowance subsidy) the first 3 years. 1st year TAS is a max of $30K. You basically have to hit $2900 FYC every month to get the full TAS. Another way to put it is that your TAS is 80% or your Monthly FYC up to a max of $2320. As I understand it you are eligible as long as you have $500 FYC a month. If you don't max out every month you can catch up the next months.

2nd year max TAS is a around $21K as I remember and require higher FYC.

3rd year max TAS is $17 I think. not 100% on that one though.

Overall pretty good though as long as you can hit the monthly numbers.