Insurance Agent Forum

[gradyinsurance]

I am considering contracting with Humana, Golden Rule, and Wellpath for individual health products through Third Party Marketers. The contracts look pretty straightforward, although I'm not sure I like what I saw about assignment of commissions .

Anyone have an experience with TPM to share? I don't know much about them.

Dave

[CHUMPS FROM OXFORD]

Gosh...I hate to sound dumb, but what is a TPM? Is that the General Agent?

[gradyinsurance]

Originally Posted by CHUMPS FROM OXFORD

Gosh...I hate to sound dumb, but what is a TPM? Is that the General Agent?

Actually, Chumps, I sounded dumb. I should have made clear that TPM is the General Agency.

Dave

[salpro22]

Originally Posted by gradyinsurance

Actually, Chumps, I sounded dumb. I should have made clear that TPM is the General Agency.

Dave

PM me and I'll set you up with a few options. I recently changed my GR contract and will be getting Humana and GTL up shortly.

[CHUMPS FROM OXFORD]

Taking GR for example...if you go independent and assuming you write about 50-100 apps with them per year...what is the % you should expect?

22%? 20%?

[somarco]

I see no value in going through a GA unless you need support & training and can get what you need. Otherwise, you run the risk of getting screwed at some point.

I am contracted direct with every carrier . . . Aetna, BX, Coventry, GR, KP, Humana, Time . . . and I see no need to assign my commissions to a GA.

Most of the carriers have incentives to move you to a higher commission as well as bonuses, trips, etc.

I moved to 22% with GR in less than 3 months. I have qualified for a bonus with them every quarter except the last when I missed the qualifier by 1 app. The provide me with free leads thru USPC.

None of this would be available if contracted with a GA.

Recently Humana revamped their products in GA. In 2 months time I qualified for their tier 2 bonus and am starting to get referrals from their home office. (Tier 1 bonus requires 50 apps . . . I wont even be close). My relationship with them has allowed me to get underwriting concessions that most likely would not have evolved through a GA.

So why do you think contracting through a GA, especially if you have to assign commissions, is so great?

I own my business, not some flaky GA. I control my destiny, not some GA.

Living the dream.

[moonlightandmargaritas]

I agree with Bob (somarco) that direct contracts are indeed the most desirable way to go - for all the reasons he enumerated in his post.

However...

Many need advances, especially when trying to build their book. Unless you've got real deep pockets, low expenses or a rich spouse (or all) you may need to go the GA route.

Yes, you'll take a haircut on the total comp, but isn't that easily covered by writing a few more cases, perhaps with marketing dollars you have because you get the advance?

That being said, direct contracts are preferable - if you can afford it.

[gradyinsurance]

Well, I've never done any health contracting before, but I will check on direct contracts with the herein mentioned carriers, and see where they stand.

Dave

[healthagent]

As stated, unless you have at bare minimum six months of household bills plus marketing money in the bank or a working spouse capable of paying all the bills an advance will be necessary and in GR's infinite wisdom they took direct agent advances away. Why? We'll never know but it really puts new GR agents behind the 8 ball since you have to sign over your commissions to get that needed advance.

The good news is new agents can find a decent GR broker, get the advance and also start off at 20%.

[TXINSURANCE]

I am of the opinion using a GA when you can go direct makes little sense unless you are captive, needing leads, or some odd scenario.

GA and Individual Insurance in my opinion don't mix. Control your own book and destiny - just say no.

[Expat]

If you need advances and leads to stay afloat, then sign with a GA for just one company. Sign direct with three or four others who pay earned/direct.
That way you will not have all of your eggs in one basket, and after a few months you will have enough income to do away with the GA

[artitude]

Originally Posted by healthagent

The good news is new agents can find a decent GR broker, get the advance and also start off at 20%.

Pardon my ignorance (the ink hasn't yet dried on my license), but where do I look to find a key agent/situation like that?

[2112Greg]

Originally Posted by Expat

If you need advances and leads to stay afloat, then sign with a GA for just one company. Sign direct with three or four others who pay earned/direct.
That way you will not have all of your eggs in one basket, and after a few months you will have enough income to do away with the GA

Excellent advice. Just make sure that whatever GA you go with for advances will let you out 'at will.' And be sure to write business with the other carriers you go direct with, otherwise the whole approach is worthless.

Also, make sure the 'escape clause' with your GA is in writing. That way, you can continue to write business for that carrier on an as earned basis, apart from the relationship you have with the GA from whom you used to write that business.

[TXINSURANCE]

I think it is nuts to take advances on Individual over 6 months, preferably I wouldn't take advances at all.

If you are doing face to face small business owners advances might be a safe bet (overall), but doing Internet "shared" leads of transitional crowd - you are playing with fire.

Personally I would get appointed direct, skip the middle man you don't need a lot of production to get to the 20%+ range and don't have to worry about someone "releasing" you down the road.

My only advice to new agents - watch those advances carefully.

[somarco]

If you need advances to keep you afloat then pick up a part time job to provide a steady income. Much more predictable and safer than asking someone to loan you money against a policy that may not stay on the books long enough to pay off the loan.

[TXINSURANCE]

If you need advances to keep you afloat then pick up a part time job to provide a steady income. Much more predictable and safer than asking someone to loan you money against a policy that may not stay on the books long enough to pay off the loan.

I think Dave Ramsey says it best when he says "The world needs pizza delivery persons..." - there is NOTHING wrong with a part time job, unrelated to your primary focus... I agree with this 100%.

[healthagent]

If your business doesn't stay on the books don't worry about an advance or as-earned or worry about a part-time job - get a full time job.

[artitude]

I'm a late middle aged man and I don't think delivering pizza's gonna help pay the mortgage or feed my kid. Some people, I suppose were able to live with their mommies while building their businesses back when, or had stash. I don't. I'm entering the game late in life, not having aspired as a kid to someday grow up to be an insurance salesman. But here I am. Are you gurus saying that if I can't wait six months or a year to make a grown up income. I should give it up?

If not, what's the best way to proceed, to find a key agent who'll give me a decent % and a fair shake - including an advance - while selling a product good enough not to be dumped too often?

[healthagent]

Grab an advance. Assurant, GR (through a broker) World and Unicare advance. You can get off the ground easily, save up some money and make the transition to as-earned later. If you want a contact for a GR broker who advances weekly at 20% just PM me.

Opinions on this board are just that - opinions. Take what you read off this board and simply decide what's best for you. If someone's anti-advance that's fine - it certainly should not affect the way you run your business.