NYinsurance417
Expert
- 69
What is the difference between going direct from carrier to carrier vs. IMO? Is there a difference in commissions?
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What is the difference between going direct from carrier to carrier vs. IMO? Is there a difference in commissions?
Comp and ownership of the business. The IMO will own the business you write through them. If you don't write a lot of business you might be better off going with IMO, but direct is the way to go if you are going to write more than a couple cases a year.
The imo doesn't own the business.
Comp and ownership of the business. The IMO will own the business you write through them. If you don't write a lot of business you might be better off going with IMO, but direct is the way to go if you are going to write more than a couple cases a year.
Here is my experience.
1)You can submit your business through an IMO. They collect the med info, schedule the exam and everything else then submit to the carrier.
2)Or you can schedule the exam, submit to the carrier and they get the med info directly.
Differences in approach 1 v. 2 - I have to schedule the exam. Takes 5 minutes and I know it has been done in a timely fashion.
Submitting direct I can also talk with the underwriter directly about my applications. I feel this saves tremendous amounts of time and gets my clients the best possible offers, but that's hard to quantify. I know I have talked through cases with her and gotten heavily rated cases issues standard because she now understood the case batter. Submitting through an IMO I know that almost never happened.
As for comp, I think it depends on how much business you do. I know I cannot make close to what I do submitting direct, but we do 350k plus in life target yearly. So I'm getting 125-130% of tgt. Most IMOs don't get that so they can't pass that through to me. They have to pay for the big glass building their offices are in.
I used to work for a couple IMOs and know the gig. I get business issued faster, with better ratings and am pretty sure I make more and probably significantly more because my renewals and other comp are higher as well.
And which carriers are you contracted with directly to sell IUL with only $350k in Target per year?
Also, if your IMO is not able to help with UW issues then find a new IMO. And you are able to schedule your own exams using an IMO. With many carriers, you are able to speak directly to underwriters or internal case managers (LFG and NA immediately come to mind). Of course some IMOs will tell you not to or that you cant just because they want to control the process.