I sell health insurance, and I'm looking at DI. However, I'd like to get an appointment with a good solid term life insurance carrier and add that to my bag of tricks. There is a market for plain old term in my area. I'm sure there is one for WL or UL, but that's a longer sales cycle than I want to get into... to say nothing about the complexity.
The Blues here both sell term life and I get asked for it, but they don't pay the kind of commission they should (same 20% as health)... I don't kow why... probably because there is no extra application or extra work. So when I write a client who asks for life, I would like to offer something where I can make a few dollars.... I don't mind the extra work.
Will someone recommend a good solid carrier in CA who will work with an indie like me and who is easy for us indies to work with? And if you know their commision rate, please post it as well.
I work with Brokers Alliance out of Fountain Hills, AZ and primarily use West Coast Life for term. They are the GA for US Financial which is a decent company for higher risk term cases but a bit pricey for the good risks.
They rep about 20 different term carriers and help a lot with the medicals, paperwork and so on which makes my life easier. Commissions are paid directly for the carrier and they will help you with the appointment paperwork (free).
Term rates for the bulk of independent carriers like you will see on Brokers Alliance run 70-85% first year only on term - no renewals. You can get renewals on permanent products UL WL if you decide to go that route later.
Term rates for the bulk of independent carriers like you will see on Brokers Alliance run 70-85% first year only on term - no renewals. You can get renewals on permanent products UL WL if you decide to go that route later.
I thought all life insurance... term and WL had renewals. Is this non-renewal thing particular to BA or does term not have renewals?
Term rarely pays renewals, unless you are captive. Check out http://agencyservices.com for life insurance. They are paying higher commission than BA and have online quoting + form download
I sell health insurance, and I'm looking at DI. However, I'd like to get an appointment with a good solid term life insurance carrier and add that to my bag of tricks. There is a market for plain old term in my area. I'm sure there is one for WL or UL, but that's a longer sales cycle than I want to get into... to say nothing about the complexity.
The Blues here both sell term life and I get asked for it, but they don't pay the kind of commission they should (same 20% as health)... I don't kow why... probably because there is no extra application or extra work. So when I write a client who asks for life, I would like to offer something where I can make a few dollars.... I don't mind the extra work.
Will someone recommend a good solid carrier in CA who will work with an indie like me and who is easy for us indies to work with? And if you know their commision rate, please post it as well.
I use Financial Brokerage for all my term business (www.fb-inc.com). They have multiple carriers and offer incentive trips every year. Any business you place through them counts towards the trip.
Now this shouldn't be your main product but if you have clients that want small issue policy with little hassle this may be the ticket to use as a side product. You can fax or email the app's in and usually issue quickly. The premiums are not that bad either, while they won't match up with Banner or West Coast they are not as bad as others I have seen.
I primarily use West Coast Life, tried Banner a few times also. West Coast has top premiums for non-tobacco.
In California, you often deal with large benefit amounts due to home costs and hi tech income replacement. For a family, staring benefit is likely at least $500k minimum and often 1-1.5 million benefit on a term plan (houses here in Gilroy start at $600k).
Most of what I sell is around $1 million death benefit 20-year term.
I think the commission rate is carrier based, so higher can be available from different carriers but the average I have gotten (WCL, Empire General, Banner) is around 80% first year (with no renewals).
I like Brokers Alliance, they are easy to work with and really know the CA term life marketplace. I do term as an aside to health insurance so it is extra cross sell business and not my primary focus - but this sure beats the old 35% with renewals I used to get from NML.
The captive carriers are the only ones that may still pay a renewal on term. Cant think of a single brokerage company. Term stays on the books around 3 years. Why even bother with taking a smaller commission on the front for something on the back that may never pay out?
My question is why WOULD term pay renewals? Renewals aren't just free money because the insurance company is generous. Renewals are given to agents to service policies and keep clients on the books. With health insurance you do a fair amount of servicing and also have to help the client with options at the time of renewal. But what exactly does an agent have to do after a term sale is made?
My question is why WOULD term pay renewals? Renewals aren't just free money because the insurance company is generous. Renewals are given to agents to service policies and keep clients on the books. With health insurance you do a fair amount of servicing and also have to help the client with options at the time of renewal. But what exactly does an agent have to do after a term sale is made?
Your basic servicing would only amount to seeing if any additional benefit is needed, that is--do they need to purchase more coverage...or should they convert any?
John, did NASE teach you to service? I'm just asking because you're always talking about the service work with health insurance and with NASE and even NHIC we were never taught to service. In fact, most guys I knew of would never even contact a person after selling them. Maybe it's pretty self-explanatory with NASE. After all, people do have claims.
The captive carriers are the only ones that may still pay a renewal on term. Cant think of a single brokerage company. Term stays on the books around 3 years. Why even bother with taking a smaller commission on the front for something on the back that may never pay out?
Why does term only stay on the books for 3 years? That's terrible retention.
My question is why WOULD term pay renewals? Renewals aren't just free money because the insurance company is generous.
Oh. I thought it was to entice people to become and stay agents... as well as to keep you semi-captive (i.e. still producing for that carrier) in that some carriers have a rule that if you don't have X dollars on the books you lose the renewal (Colonial Life, for example.)
My question is why WOULD term pay renewals? Renewals aren't just free money because the insurance company is generous. Renewals are given to agents to service policies and keep clients on the books. With health insurance you do a fair amount of servicing and also have to help the client with options at the time of renewal. But what exactly does an agent have to do after a term sale is made?
Your basic servicing would only amount to seeing if any additional benefit is needed, that is--do they need to purchase more coverage...or should they convert any?
John, did NASE teach you to service? I'm just asking because you're always talking about the service work with health insurance and with NASE and even NHIC we were never taught to service. In fact, most guys I knew of would never even contact a person after selling them. Maybe it's pretty self-explanatory with NASE. After all, people do have claims.
Yeah, with UGA you hope your clients lost your phone number. It took me a while after I went independent to figure out that you really need to stay in touch with your clients. Yes, claims are filed and no one's happy when they have to pay any large amount out of pocket. But if you're not in contact with them the policy is likely to lapse. Sometimes people are just looking to vent. Once they vent and get it off their chest they're ok.
I sold a HSA over a year ago and both husband and wife we're all over it. They filed a major claim and owed the first $5,000. The wife went nuts. She called me, chewed me out for even recommending it and said they're screwed because they don't have $5,000. I believe her quote was "this plan sucks!"
After she calmed down I went over some PPO quotes with her - about $180 more a month with the SAME OOP for an individual. To put her an a PPO plan and lower the individual OOP would have made her rate $250 a month higher. Then she got it and they're still with me.
If they would have lost my number they would have just called the company and likely cancelled.
But you're right - when you stay in constant touch with your clients you're the whipping boy everytime they're pissed. I'm basically getting a call anytime someone gets outpatient lab testing:
"John, why do I owe $1,200 for a MRI?"
It's also why I sell HSAs - they're easy for clients to understand. Under the deductible = you owe it. PPO plans are confusing the most people.
A few years ago, Jackson National gave agents (non-captive) the choice of taking an upfront commission at the time of the sale or a lower first year commission with a trail commission for a certain number of years. I am not certain that they still do this. There were a couple of other term companies that did that but I cannot recall which ones. Most agents opted for the upfront full commission at time of the sale.
Brokers Alliance now offering health coverage to producersGo to Top
I just got a letter from Brokers Alliance in AZ that they are offering health, dental, vision and DI to producers who write term with them. As I understand it, you can buy it for the full premium and depending on your production, they will pay some or all of it for you. It is Humana National POS Coverage First.
Interesting, I have been trying to convince Blue Cross CA to offer producers coverage under some similar arrangement for awhile now with absolutely no success. I guess this is a good incentive to get my term life production up!
Term life carrier wanted
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