Oh how Little I Know

Ray,

Thanks for your input. I think the reason I'm skeptical about Protective is probably because a) I don't understand the product well, despite reading it and b) the high commission, plus trails, seem like an "almost too good to be true" deal.

I'm talking about their Custom choice UL term.

Again, it's most likely my ignorance.

As for Lincoln - I don't know. When I run quotes I always look for it to be as competitively priced as Banner, Cin Life etc but it's often times not. IF it's offered at all.

And, given I am in ATL and many of the clients I am working on replacing live in FL or NC so E-app is my main source. Cincinnati Life is still stuck back in the 1800's, relying on the Pony Express for applications. That's frustrating!

----------

Seems like more people are relocating out of Atl these days vs. into it! lol.
Not really, but my area has seen a big influx of people from there trying to escape the traffic. Im about 2hrs up the interstate from you.

The traffic here is insane AND nuttier than a fruit cake. At the drop of rain, people freak out. I can't wait for it to snow so I can really be motivated to cut my wrists. :err: You are two hours away but probably a whole lot happier and serene. I briefly considered Greenville because it's so delightful. Coming from Miami, though, I thought it might be too small for my large personality.

So which carriers do you want to write? Perhaps that is a better question. That is not a bad lineup...

I really don't know since I'm newly freed from the NYL imprisonment. I came from a place where they said nothing is as good as us so I'm ignorant to what's out there.

Why do you say that LFG is "not readily available to most clients"?? Are you dealing mostly with smaller face policies?

yes, at the moment, $300k and under. Does Lincoln not usually go this low? Is this considered low?


Cinci Life can be a pain to deal with but has really competitive products. Comp can vary wildly from GA to GA from what I have found. Their ROP Term is probably the best out there.

20 year - 85%. Only thing better (available to me here) is Lincoln at 90%

AIG is competitive on price. Decent products. Comp is not the highest but not the lowest either. If you do some biz with them and shop around you can find higher.


I don't even know if I can shop around to other GA's? Am I allowed to have more than one boyfriend in this business?:laugh:


Banner is basically just inexpensive term for people who dont care about converting ever. Good to have.

Well that's an interesting statement.....care to expound? They have less than stellar WL to convert to?

Metlife has some pretty low comp compared to others. But you can find higher contracts if you start doing more Met business.


Protective is a good product. You probably just need to learn more about how it works and get comfy with it since it is not a normal term product. Great company to work with though.

I think my ignorance on this is costing me big time. I could've replaced some people here. I will re-think this for future.


Comp does vary from GA to GA (or IMO to IMO, etc). Here is a quick breakdown of how comp works:

- Comp to the GA/IMO is based on production. So some GAs might have a total of 130% on LFG... while another might only have 110%.
- So there is always the possibility that the GA gets paid more from their main carriers vs. others.
- Some GAs push lower comp products because they are more competitive and the GA knows they will get more volume which will give a higher revenue. It just depends and is something that varies wildly.

- Agent comp starts (usually) at what is called "Street" comp. It is the base comp for a new agent who has zero production with that carrier. Sometimes agents are put below street for various reasons... usually assistance of some kind like free leads or an office to work out of.
- Agent comp is also based on production though. So as your production picks up with a carrier, you can in turn ask for a bump up in comp.
- Unless you have established production with that carrier, do not expect to get over Street.


Here is my advice to a new indy agent.
1. First and foremost, sell what you personally would buy if you were in the same situation as the client. That will be the key to making the most money possible in this career. Maybe not on a case by case basis, but over the long term that will boost your income more than anyting else. If that means using a different or multiple GAs, then do it. Most agents use multiple GAs.

2. In the first 2 years of being indy, forget about comp %s. Make sure you are at Street, then put it out of your mind.

3. After 2 years of being indy, review the carriers you are using and the production you have with each of them for the past 12 months. Then you can go out and start shopping comp if your production warrants it.


When you start asking about comp, the first thing a GA or IMO is going to ask you is "how much production history do you have with them?". If none, they are going to ask how much you plan to do with them, and how you plan to do it, and if you have ever done production like that before.


Yes there are some IMOs out there that will give out above street to just anyone. But the servicing you get from your IMO will become a big deal as your business grows. Not all are made equal, and good service that places cases with as little effort on your part as possible is easily worth 5% less if not 10% less.

Basically, you just want to make sure you are not getting screwed on comp. So if you want to know street comp for carriers just ask and the forum can help you out. As long as you are getting Street then its fair for an agent within their first 2 years.

I'd like to call your mother and thank her for raising such a nice boy:yes:

Thank you for taking the time to write this out. It is VERY helpful. And great advice for the shiny newbie that I am. I am really not SuperWoman...yet.

Thanks so much! :biggrin:
 
BTW - do many agents use more than ONE GA/IMO?

Yes. You will find that GAs/IMOs all have their own area of expertise so it can help to have different GAs for different stuff sometimes. I use more than one IMO.

Also, its good to have multiple relationships established already just in case things go south with your main upline. Some carriers will even allow you to have 2 different writing numbers under 2 different uplines.
 
Yes. You will find that GAs/IMOs all have their own area of expertise so it can help to have different GAs for different stuff sometimes. I use more than one IMO.

Also, its good to have multiple relationships established already just in case things go south with your main upline. Some carriers will even allow you to have 2 different writing numbers under 2 different uplines.

That makes great sense. I was referred to this GA by another indy guy who does group only. I googled the GA and found them being used here by some people of this forum. Nothing but good things said so I made the connection with them.

I had previously used Crump while at NYL - they are their broker - and sold some GI. I am now using them again, without this GA because they aren't one of their carriers. Since it's GI there's not much behind the scenes work to do. Btw, the GI is with Gerber which pays 60% - seemingly a good comp for GI.

I guess I should now look for a back up. Do you have any recommendation? Best to have one in the same city/state?
 
If you think people freak out driving in the rain, just wait until it snows.

That is fair comp for Cinci Life and LFG. I think you are at street with LFG. Cinci is about average.


LFG is one of my favorite life carriers. I would also take a look at North American. They have excellent term rates and strong conversion options.


Banner does not have a WL to convert to. They offer a GUL to convert to.
Dont get me wrong, its a perfectly fine product. But they offer just that one option for conversion. Compare that to NA or LFG which offer around 3 options to convert to (currently at least).


The IMO recommendation just depends on the market you are working and how you are working it. If you havent looked at Pinney's EZ-Life sales system for term you really should. There are others that have similar setups. But if you are selling a lot of term, a drop ticket system of some kind is very valuable.

And no problem for the info. I wish someone had given me the same advice when I first went indy 8 years ago.
 
If you think people freak out driving in the rain, just wait until it snows.

That is fair comp for Cinci Life and LFG. I think you are at street with LFG. Cinci is about average.


LFG is one of my favorite life carriers. I would also take a look at North American. They have excellent term rates and strong conversion options.


Banner does not have a WL to convert to. They offer a GUL to convert to.
Dont get me wrong, its a perfectly fine product. But they offer just that one option for conversion. Compare that to NA or LFG which offer around 3 options to convert to (currently at least).


The IMO recommendation just depends on the market you are working and how you are working it. If you havent looked at Pinney's EZ-Life sales system for term you really should. There are others that have similar setups. But if you are selling a lot of term, a drop ticket system of some kind is very valuable.

And no problem for the info. I wish someone had given me the same advice when I first went indy 8 years ago.

I second the recommendation on EZLifeSales. Great quoting tool with html code you can add to a website. The health analyzer is very useful. I don't see Cincy Life listed in the quotes.
 
I don't see Cincy Life listed in the quotes.

Thats because Pinney does not offer Cinci Life contracts (that I know of). Plus, the carrier has to approve the product for the drop ticket system, and Cinci is stuck in the 90s when it comes to technology...

EZ-Life is only going to show carriers that Pinney has a relationship with. They cover most all of the main term carriers, but there are a few competitive options they dont have such as Cinci or Ohio National.
 
Geez....

Good stuff. These are all questions I have been trying to work through myself...as another new indy.

There appears to be so many options out there (MGAs, IMOs) and not a systematic way to find or compare them.

Thank goodness for this forum as it helps me get up to speed on a number of fronts.

I synthesize best if I can 'spreadsheet' my comps for anything. See apples to apples - as much as that can be done.

I don't even know how many GAs and IMOs there are available to someone in CT, let alone know the skinny on each.

Everytime I check in here I learn something new.
 
Geez....

Good stuff. These are all questions I have been trying to work through myself...as another new indy.

There appears to be so many options out there (MGAs, IMOs) and not a systematic way to find or compare them.

Thank goodness for this forum as it helps me get up to speed on a number of fronts.

I synthesize best if I can 'spreadsheet' my comps for anything. See apples to apples - as much as that can be done.

I don't even know how many GAs and IMOs there are available to someone in CT, let alone know the skinny on each.

Everytime I check in here I learn something new.


Unless you need leads, but even then I would buy them myself, avoid all IMO's unless you need a carrier for a substandard case. I do not see the purpose of IMO's for experienced agents and do not respect companies that make you use them. There are companies where you can deal direct and not put up with the BS from an IMO.

If you want to work for yourself as an independent then do it. If you sign with an IMO they get all the bonus money and actually own you for maybe 6 months if you want released. BTW I have been doing this 30 yrs and NEVER affiliated with an IMO except for substandard cases.
 
Unless you need leads, but even then I would buy them myself, avoid all IMO's unless you need a carrier for a substandard case. I do not see the purpose of IMO's for experienced agents and do not respect companies that make you use them. There are companies where you can deal direct and not put up with the BS from an IMO.

If you want to work for yourself as an independent then do it. If you sign with an IMO they get all the bonus money and actually own you for maybe 6 months if you want released. BTW I have been doing this 30 yrs and NEVER affiliated with an IMO except for substandard cases.

Some of the best carriers are only available through an IMO. Most of the major life carriers will dual appoint so there is no issue with releases.

Ohio National, Pac life, Midland, Mass, etc. are all great but you can often get better offers, mainly for GUL and some term, from the "IMO" carriers.
 
Back
Top