Liberty National Now Has a Broker Side?

magagent · 11-05-2009, 10:07 PM

I got an email blast from an agency in South Carolina offering a LNL contract at 110%?? LNL will advance on submission, doesn't take chargeback out of your advance, has great prices and, pay high commissions quickly... What??

I am not interested in doing any business that pays on submission or a torchmark company, besides I thought LNL was as captive as they come..

scagnt83 · 11-09-2009, 12:19 AM

Its not a company that I would really sell, but I dont think that LNL is captive anymore... not totally sure though. But I would be leary of any company paying over 95%.

dgoldenz · 11-09-2009, 12:32 AM

Originally Posted by scagnt83

Its not a company that I would really sell, but I dont think that LNL is captive anymore... not totally sure though. But I would be leary of any company paying over 95%.

Why would you be leary of a company paying over 95%?

WinoBlues · 11-09-2009, 12:50 AM

Originally Posted by dgoldenz

Why would you be leary of a company paying over 95%?

I would be leary of a company that pays less than 95%

scagnt83 · 11-09-2009, 01:02 AM

Originally Posted by dgoldenz

Why would you be leary of a company paying over 95%?

Well...i probably should have said over 100%. But the numbers just dont work out on a long term basis on a business model level, which therefore jeopardizes the financial stability of the company.
Its like an annuity company offering 15% commision on a product when most of the industry is offering 3%-7%. When a company is that desperate for business do you really feel safe putting a client with them??

I mostly sell UL these days....am I so out of touch with the term side of the business? Are most A+ rated companies paying over 95% fyc on term??

dgoldenz · 11-09-2009, 01:06 AM

Originally Posted by scagnt83

Well...i probably should have said over 100%. But the numbers just dont work out on a long term basis on a business model level, which therefore jeopardizes the financial stability of the company.
Its like an annuity company offering 15% commision on a product when most of the industry is offering 3%-7%. When a company is that desperate for business do you really feel safe putting a client with them??

I mostly sell UL these days....am I so out of touch with the term side of the business? Are most A+ rated companies paying over 95% fyc on term??

It will always depend on your contract. If you have a high level contract is probably somewhere in the 100-125% range for UL. One of the guys who runs a GA would have a better idea. The brokerage company we use takes a decent chunk of our commissions and we still get 95-110%

jdeasy · 11-09-2009, 09:12 AM

It doesn't matter if the agent is getting 70%, 80%, 90% or 110%, somebody is getting 125%.

souldeux · 11-09-2009, 10:17 AM

Originally Posted by jdeasy

It doesn't matter if the agent is getting 70%, 80%, 90% or 110%, somebody is getting 125%.

And someone above them is generally getting 145% - 150%. Ever hear the truism that insurance companies live on lapses? Life policies are extremely front-loaded in terms of acquisition cost.

dgoldenz · 11-09-2009, 10:57 AM

Originally Posted by souldeux

And someone above them is generally getting 145% - 150%. Ever hear the truism that insurance companies live on lapses? Life policies are extremely front-loaded in terms of acquisition cost.

x2

If you do all of your own work and have a high production level you could probably get 110-125% yourself. If you want/need the help of a GA to shop your cases and do the back-end work, 90-110% is more realistic with good production.

dlj2626 · 11-14-2009, 10:38 AM

United American is a Torchmark company and they offer a broker contract. From what I know United American was bought out by Liberty National and those offices are suppose to soon become Liberty National. Also, Liberty National is moving their headquarters to McKinney, Texas soon. So I would not be surprised if Libert National starts a broker contract.

The only product I would consider selling for Liberty National if I was independent is their modified life. Its issue ages are 0-80. Three year waiting period and paid up in 20 years. Most graded or modified policies seem to start at age 40 to 45 from what I have seen. Their group term is not bad either on payroll deduction because it stays level and it is portable. Their whole life is pretty expensive and their term is one of the higest out there that I have seen.

TristanTLC · 11-14-2009, 11:07 AM

Originally Posted by dlj2626

United American is a Torchmark company and they offer a broker contract. From what I know United American was bought out by Liberty National and those offices are suppose to soon become Liberty National. Also, Liberty National is moving their headquarters to McKinney, Texas soon. So I would not be surprised if Libert National starts a broker contract.

The only product I would consider selling for Liberty National if I was independent is their modified life. Its issue ages are 0-80. Three year waiting period and paid up in 20 years. Most graded or modified policies seem to start at age 40 to 45 from what I have seen. Their group term is not bad either on payroll deduction because it stays level and it is portable. Their whole life is pretty expensive and their term is one of the higest out there that I have seen.

I don't even know where to start with this one.

Everybody's group term is capable of doing payroll deduction and is portable. It's not like they have a choice in the matter when it comes to portability.

Their term is horrible, have you ran a quote? Their term side is the worst I've seen on rates! I ran them against my WCL, Assurity, JH, LSW, Fidelity, and AGLA and they were the most expensive term of all of them.

You think their Whole Life is expensive? Are you kidding me? Their whole life is extremely competitive. This is the only thing they have that's worth anything. I'm not advocating libnat by any means, but if you're comparing products - this is the only area where they do shine. I worked with an agent who went captive at libnat and we ran some quotes from his whole life vs my Settlers and Libnat was cheaper.

dlj2626 · 11-14-2009, 12:03 PM

Originally Posted by TristanTLC

I don't even know where to start with this one.

Everybody's group term is capable of doing payroll deduction and is portable. It's not like they have a choice in the matter when it comes to portability.

Their term is horrible, have you ran a quote? Their term side is the worst I've seen on rates! I ran them against my WCL, Assurity, JH, LSW, Fidelity, and AGLA and they were the most expensive term of all of them.

You think their Whole Life is expensive? Are you kidding me? Their whole life is extremely competitive. This is the only thing they have that's worth anything. I'm not advocating libnat by any means, but if you're comparing products - this is the only area where they do shine. I worked with an agent who went captive at libnat and we ran some quotes from his whole life vs my Settlers and Libnat was cheaper.

I never said their term is/was good. Back in the day when a Liberty National agent wrote term through United Investors it was competitive. Not the lowest price out there but not the most expensive either. Now Liberty National has their own term product that is expensive. Especially when you go over age 30. However, I have seen worse and more expensive term products out there. As for term, I would put Liberty National in the bottom 5%.

Their whole life is not that bad overall. But I have seen better. For amounts under 15,000 they are expensive. The modified whole life is great if you got people under the age of 40 that might not be able to get insurance anywhere else. There are a few exceptions (HIV, AIDS, Lou Gehrig's disease, terminally ill, etc.) where they will not insure people. Overall there product line is now one of the worst in the industry mainly because of their new term product and there is no med sup to write and they do not push annuities whatsoever.

I worked for Liberty from 2001 to 2004. At the tail end of my stint was when they started making changes. When I first started working for them they cared about their customers and agents and did what they could to make new agents successful. You actually had classroom training back then and a manager rode with you for about the first 6 to 8 weeks.

Now, they could care less who they hire and it is putting a bad taste in the mouth of a lot of people that enter the insurance business brand new. Puts such a bad taste in people's mouth that they do not want to even try and work for another insurance company. I have also ran across some of my old clients over the years that have not been seen or contacted by a Liberty National agent since I worked for the company. So that has been 5 to 8 years. They also put this big focus on recruiting (which I have yet to understand) and there turnover rate is much higher than it was when I was there.

I do give the company credit. They are great and always was great at paying claims. It is really not the company that is bad. I would say the leadership is what is giving Liberty National a bad name in the industry.