Is It Normal to Be Paid Commission MONTHLY?!?

[AboutThatLife]

If you're doing final expense and you start talking about modal APR's you are going to fail your clients and yourself.. Please do not do that.

"Would you like your draft monthly or annually? Annual is the best value."

That's it.

 

[DHK]

What Solutions do you have for me?

Go sell more and you'll get a check.

 

[MichaelBurton]

If you're doing final expense and you start talking about modal APR's you are going to fail your clients and yourself.. Please do not do that.

"Would you like your draft monthly or annually? Annual is the best value."

That's it.

But that's not always true. Annual is not always the best value. If a company has no modal factor (and several don't), then the more frequent modes are the better value!

I do see what you're saying about keeping things simple. And I do think people need to be protected from too much information. Perhaps this is even more true for Final Expense policies. I don't know that part. I've never sold one.

I just think the safest thing to do is to put the information at the client's disposal and offer some guidance for what you would do if you were in their shoes.

"Here's the information about the costs for different payment modes. Here are the annualized costs in dollars. And here they are expressed as an APR%. I think the best value is Option "Fill in the blank." How does this sound to you?"

Or it could even be something as firm as,

"After reviewing these options, I'd like to set you up on the XXXX mode because it is the best financial value. Any objections to that?"

At that point, if the client objects to one or the other, fine. Set it up how they want it. But at least the information was provided and the client gets to make an informed, adult decision.

In either case, the advisor needs to do the work to actually acquaint himself with the costs. I don't think it should be assumed this is automatically taking place.

 

[Golfnut2112]

First off I would avoid any FMO'S, IMO'S or any other marketing organization unless you really need help marketing, most home offices with provide you with case design. Three companies you can deal direct are Lafayette Life, Columbus Life and Ohio National, all three advance commissions and you deal directly with them. Also I would look for annuity business it's easy and pays fast.

 

[pfg1]

Yeah, many carriers pay as earned. And honestly, that is not a bad thing. But yes, some carriers have a minimum amount they will pay, so it could take a couple cycles to get enough to get a check.

Annualized commissons are nice, but can sting a little if you happen to get a charge back. As mentioned earlier, some do annualize even on monthy drafts - but may require a min amount of production to qualify for this. I know Ohio Nat is that way.

First off I would avoid any FMO'S, IMO'S or any other marketing organization unless you really need help marketing, most home offices with provide you with case design. Three companies you can deal direct are Lafayette Life, Columbus Life and Ohio National, all three advance commissions and you deal directly with them. Also I would look for annuity business it's easy and pays fast.

I wouldn't say to avoid all IMO's, but more to be selective in picking who can really help you with your business. Yes, some are terrible but others are pretty darn good. Many carriers you don't have a choice, you can't go direct.

 

[AboutThatLife]

But that's not always true. Annual is not always the best value. If a company has no modal factor (and several don't), then the more frequent modes are the better value!

I do see what you're saying about keeping things simple. And I do think people need to be protected from too much information. Perhaps this is even more true for Final Expense policies. I don't know that part. I've never sold one.

I just think the safest thing to do is to put the information at the client's disposal and offer some guidance for what you would do if you were in their shoes.

"Here's the information about the costs for different payment modes. Here are the annualized costs in dollars. And here they are expressed as an APR%. I think the best value is Option "Fill in the blank." How does this sound to you?"

Or it could even be something as firm as,

"After reviewing these options, I'd like to set you up on the XXXX mode because it is the best financial value. Any objections to that?"

At that point, if the client objects to one or the other, fine. Set it up how they want it. But at least the information was provided and the client gets to make an informed, adult decision.

In either case, the advisor needs to do the work to actually acquaint himself with the costs. I don't think it should be assumed this is automatically taking place.

Your style is very much like someone who has already been paid and does not care what the client does one way or the other. That's good for you, but if the client gets analysis paralysis that's not good for them.

DHK made a great point on this. Get the client first, then do that. When you get your clients, they are either banking/finance professionals or referrals from such people. You're getting a different client, a client that may be used to your style or more open to it. When we are operating off leads or referrals from everyday people they just need to know they are getting the right amount of security for their needs.

Price is not everything. A fair price is whatever someone is willing to pay(except in medicine). If logic were king, this would be an easy business.

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First off I would avoid any FMO'S, IMO'S or any other marketing organization unless you really need help marketing, most home offices with provide you with case design. Three companies you can deal direct are Lafayette Life, Columbus Life and Ohio National, all three advance commissions and you deal directly with them. Also I would look for annuity business it's easy and pays fast.

What part of west VA are you in? I'd like to learn more about annuities.

 

[InsuranceBrah]

I would like to go direct. It just so happens that having things centralized simplifies management for me. And all my good carriers don't do direct appointment.

Also I like being able to do file shares if a client gets denied or rated.

 

[MichaelBurton]

Your style is very much like someone who has already been paid and does not care what the client does one way or the other. That's good for you, but if the client gets analysis paralysis that's not good for them.

Good point.

DHK made a great point on this. Get the client first, then do that. When you get your clients, they are either banking/finance professionals or referrals from such people. You're getting a different client, a client that may be used to your style or more open to it. When we are operating off leads or referrals from everyday people they just need to know they are getting the right amount of security for their needs.

Price is not everything. A fair price is whatever someone is willing to pay(except in medicine). If logic were king, this would be an easy business.

More great points.

This is an excellent demonstration of why forcing everyone to comply with a fiduciary standard would be tragic for the industry and for many buyers. They would be shell-shocked with information overload that would be mandatory disclosures for the agent. It would definitely impede the best outcome for all parties in certain markets. I respect that.

I choose to comply with a fiduciary standard because it fits my style and because it allows me to compete favorably in a niche market where there is very little competition. What I do is appropriate in that space. It serves the desires of highly analytical people who are skeptics . . . and in many cases, control freaks. Like me.

I agree that it would not be appropriate in every space.

 

[InsuranceBrah]

Good point.



More great points.

This is an excellent demonstration of why forcing everyone to comply with a fiduciary standard would be tragic for the industry and for many buyers. They would be shell-shocked with information overload that would be mandatory disclosures for the agent. It would definitely impede the best outcome for all parties in certain markets. I respect that.

I choose to comply with a fiduciary standard because it fits my style and because it allows me to compete favorably in a niche market where there is very little competition. What I do is appropriate in that space. It serves the desires of highly analytical people who are skeptics . . . and in many cases, control freaks. Like me.

I agree that it would not be appropriate in every space.

Thumbs up on that. I like to disclose my commission on annuity products and explain how they work to make sure the client understands it and has no misconceptions. With that said I'm not going to go in that much detail with the different crediting methods. Or even bring up the fact that there's a monthly option. If a monthly option isn't right for the client bringing it up only confuses them. It's almost like people forget that we are the professionals. You don't ask your baker every ingredient in a cake. Just have faith that we are doing our jobs. Beyond that I fully believe in commission and conflict of interest disclosures.

 

[Todd King]

I would like to go direct. It just so happens that having things centralized simplifies management for me. And all my good carriers don't do direct appointment.

Also I like being able to do file shares if a client gets denied or rated.

You're correct, most good FE companies won't allow you to be direct. You do need a good upline who is at least going to pay you street level (which you're not at), and would allow you to get advances if needed. Head over to the FE forum and start reading. There are several good IMO's there, which I must claim we are one of them.