Posted many times on the old board, but this is my first post on the new board. I received my license in December, and I'm ready to take the plunge. Understanding that I intend to be indpendent, I realize that I should spend some time in the field working for another company first. Have been looking at Banker's Life, or Union Bankers, any feedback about these companies? Rip off report has only one complaint on Banker's Life, and none on Union Bankers. Looking for 3 to 6 months of experience. Also, how do renewals work, I read about them all the time on here, but can't recall anybody ever giving a percentage or dollar amount on them. A $4000.00 policy at 20% pays $800.00 commission, but what is the typical renewal amount on that transaction for the second year, and beyond. Are renewals paid as earned, or in advance. Just trying to put a budget in place. Thanks to this Forum, and the great people on here, I am looking forward to getting started.
Posted many times on the old board, but this is my first post on the new board. I received my license in December, and I'm ready to take the plunge. Understanding that I intend to be indpendent, I realize that I should spend some time in the field working for another company first. Have been looking at Banker's Life, or Union Bankers, any feedback about these companies? Rip off report has only one complaint on Banker's Life, and none on Union Bankers. Looking for 3 to 6 months of experience. Also, how do renewals work, I read about them all the time on here, but can't recall anybody ever giving a percentage or dollar amount on them. A $4000.00 policy at 20% pays $800.00 commission, but what is the typical renewal amount on that transaction for the second year, and beyond. Are renewals paid as earned, or in advance. Just trying to put a budget in place. Thanks to this Forum, and the great people on here, I am looking forward to getting started.
You are going to find that everything you asked about regarding commissions is going to vary from company to company. It is really difficult to answer that question. I would recommend that you ask those same questions of each of the companies you are considering licensing with.
You will find that most companies will advance your commissions anywhere from nine to twelve months.
It sounds like you are considering going into the Senior market. Is that correct? I didn't notice if you mentioned what state you live in. It would be helpful if we knew that.
In Missouri, Bankers does not have a good reputation with my clients who had them for their Medicare Supplement policies. My clients tell me that they are very high pressure and will frequently send two agents on an appointment to "double team" the prospect. Also that they use scare tactics to convince the prospect they need Plan F.
I have no personal experience with them, I'm just passing along what my clients have told me.
Again, in Missouri, Continental Life in Brentwood, TN has been consistently the best company for me to put my clients with for about the past six years. I am an independent and represent other companies but each year Continental remains at the top of my list of companies I am most comfortable recommending.
They have very competitive rates, their increases are few and very reasonable. When they had their last increase Plan D went up only 9% while Plan F went up 25%. I only sell Plan D.
------------------------------------
Medicare Supplement Sales Training and Coaching.
"The Perfect Contact Management Program (CMP) for the Insurance Professional" www.YourInsuranceOffice.com
877.633.0808
Banker Life is not competitive in IN either. Niether is Union bankers. Well BAnkers life might have a J plan that competitve but thats it. They sell alot of home health care and long term care also. Half ass coverage!
Commissions in IN are usually around 20% level for 6-8 years. 6 is the most common, and that is for medicare supplements. MA's are pretty standard everywhere with 325 first year and 110 2nd-5yrs. well that is with pyramid. Final expense (whole Life) is usally around 90-110% first yr and 5-10% renewal years. If you are captive you will only get a little more than half of that for commissions.
I know why you like Sterling, you got $1,000 for writing ten apps with them. I limited the number of apps I wrote to only ten though.
After less than two years they had a pretty substantial premium increase. I knew that was coming. Every new company that comes here does the same.
United Teachers was "dirt cheap" for about two years and then went out of sight. I anticipate World doing the same.
I don't like having to write the same clients over and over again. It takes a lot of time and none of it is "new" money. That is pretty much why I put them with Contintel every chance I get.
I guess it must be a Missouri thing but I can take any Continental of Brentwood and turn them into a United client in about 5 minutes. I was once appointed with cont. here
I don't understand how continental could keep there increases down when no one else can. I do recall about 2 months ago I save a couple about 80 bucks a month. I moved them from Continental life select plan I forget which letter, to a continental GENERAL H plan. I think maybe the rate increase haven't hit frank yet
I believe that one of the reasons Continental is doing better is because they do a better job of underwriting.
I can write a 65 year old female, non smoking for $93.25 per month. Plan D. Sterling's rates for the same female are $93.05. However, I'll be willing to bet $100 that Sterling has a substantial increase in the next 18 to 24 months. Continental probably won't based on past history. I don't want to be chasing Sterling clients a year or two from now.
I'm sure there are other reasons but I would bet that is one of the biggest.
Companies who have few health questions on their app are insuring more sick people. Sick people have claims and claims are the main reason for premium increases.
The first thing I look at with a new company are the health questions on the app. If they are real easy I don't usually license with that company.
Yes they did, however, I haven't noticed any changes. They have always given me great service. The "little guy" no longer owns it but apparently is still some what of a player.
Senior,
Yes I believe that is correct. They apparently have applied in Missouri and are waiting approval.
Last I heard, agents can license directly with Continental. I prefer to do that whenever possible.
American Pioneer did that and now they have a company called Marquette National I believe. Their rates are lower than American Pioneer's but still quite a bit higher than Continental's.
I represented American Pioneer for quite a while, about six years. Husband and wife applying at the same time got a 5% discount. The rate I sold the policy for was guaranteed for one year. However their health questions were easier to answer than Continental's and that eventually caught up with them almost two years ago. Now they are not very competitive.
Continental had one last year. 9% on Plan D. They have been the best in MO for the last six years.
They have a new company and the rates are suppose to be a lot lower. I think it is in NC that the rates for a D are 70+.
Call and ask to talk to Georgia in marketing, she can fill you in. Very nice lady.
Frank,
I think you may be on to something with the Plan D. Sometimes you have to be little different than the competition. Most just come in with F, although I've seen some agents sell B select just to be the cheapest apparently, and in some cases not explain that there are more gaps than just the B deductible that plan B doesn't cover (this was a BC/BS agent who writes a ton).
How much resistance do you get from those clients who swear by F and don't want to pay the Part B deductible, etc. and how do you deal with it?
I think you may be on to something with the Plan D. Sometimes you have to be little different than the competition. Most just come in with F, although I've seen some agents sell B select just to be the cheapest apparently, and in some cases not explain that there are more gaps than just the B deductible that plan B doesn't cover (this was a BC/BS agent who writes a ton).
How much resistance do you get from those clients who swear by F and don't want to pay the Part B deductible, etc. and how do you deal with it?
I usually get some resistance at first. I consider that to be a good thing because it leads me easily into why Plan D is better.
Regarding the Part B deductible. I show them the premium for Plan F and the one for Plan D. With Continental Plan D for a 65 yr old female is $93.25, a Plan F is $140.17. A difference of $46.92 per month. (Premiums will be different in other states and other companies, but in most cases Plan F will be much higher.)
I then tell them that they are paying an extra $46.92 per month ($563.04 per year.) just to get the insurance company to write the Dr. a check for the Part B deductible, $131, when they can do it themselves and save $432.04 per year.
If they bring up excess charges, I tell them about the change in Medicare in the mid 1990's and since then virtually all doctors now accept assignment. (If you are not familiar with the changes let me know, they totally changed the kind of Plan people need.)
Then, if necessary, I ask them to call their doctor and verify that the doctor accepts assignment. Hence, no excess charges. (It is a bunch of B.S. that their surgeon probably does not accept assignment. That's what agents tell people who know that their doctor accepts assignment, trying to scare them into thinking that they may still have to pay thousands of dollars out of their pocket.)
I point out that Plan D has At Home Recovery, a potential $1,400 benefit each year and that Plan F does not have that benefit.
It they keep insisting that their current agent told them they would be putting themselves at great financial risk by not having Plan F I then explain to them that all agents work on straight commission and the more expensive the policy is the more money they make. If necessary I even tell them what my commission is on a Plan D and what it would be on a Plan F.
I then ask them if they now realize why their agent was so insistent about telling them they have to have Plan F.
When I finish with all that they are usually looking for a pen wanting to know where to sign.
Do you think that they will ever talk to their former agent after that, let alone consider keeping their F and cancelling the D that they just took with me? Hell no they won't.
I just love it when a prospect tells me they have a Plan F. That is money in the bank for me.
I encourage all agents in Missouri to ONLY SELL PLAN F.
That is what their marketing organizations and companies are telling them. I'm just reinforcing it.
Time to get my feet wet
I limited the number of apps I wrote to only ten though.
Linear Mode
