Need help on asking questions about selling insurance

[Leanne McGarr]

I had a broker come to my home this evening to sell us some life insurance and she mentioned that if we knew of anyone who might be interested in selling to let her know. I am in the party plan business already and said I wouldn't mind finding out more. I was sort of blown away by the money potential. BUT I don't know enough about the industry to even understand if it is a good deal or not. The broker had only been with this company a few months and the company itself is only about 6 years old. But she made over $600 just on the policy we signed up tonight. This company provides the leads and there isn't any cold calling (which I refuse to do). It sounds good but still something seems to good to be true.

Of course, I wouldl have to get licensed but she did say our state just started doing the licensing online. But she seemed to indicate there would still be a 3 day class I would have to take. That isn't a problem. I am also wondering about how much it costs to get licensed.

Just any advice or words of wisdom as to what to ask would be very appreciated.

Thanks!
Leanne

[Leanne McGarr]

I have done a bit more research and have a couple of concerns. Apparently, you pay the company for the leads. Is this normal? She didn't indicate that you paid for the leads. She said "they give you a list of leads for people in your area". But then when I looked up the company online there were complaints that the good leads were $20 a pop and sometimes they were over 6 months old.

What is the difference between being a broker and just working for a company like State Farm or something? The company that did this was NAA by the way which from what I read, may have some problems.

Thanks!
Leanne

[Leanne McGarr]

Thanks so much for the information. Very helpful.

I can't remember if she used the term broker but based upon your description, I believe she is an independent contractor. Because I did ask her today if there were any restrictions as to selling and she said No, because we are independent. She did say pretty much what you said in that they are a marketing company and you buy the leads. I questioned her as to whether these leads are sold to more than one person and she says No. that you buy the lead and you have it for 5 weeks exclusively. She says the leads can be as high as $24 per lead but that she normally sticks with $2 leads and has done fine with them. I am a skeptic by nature I guess, just because I don't feel I know enough details to know if I have asked the right questions. The starting percentage is 55% until the first $5k is written, then you move to 60% and can go as high as 110% based upon sales. One question I asked was once you move up in the percentage, do you ever get booted back down (like for not selling enough). She says No. I asked if they charge for training (webinars, DVDs, teleconferences, etc) She says No. I asked if there was a joining fee. She says No. We do have to pay to get our license and we will have to pay for training for continuing education.

It sounds really good and I guess the worst that could happen is that I end up with an insurance license that I paid for.

But I feel it is a good service to provide. My husband and I tried applying for life insurance on him a couple of years ago. They sent someone out for the bloodwork and such and we got turned down because they determined he was diabetic. We didn't know of course until then. but they just said No and didn't offer any alternatives. I just assumed nobody would write a policy and I have been living in fear that something would happen to him. When I found out there was a company that would write it and pretty reasonably, I was excited. Obviously, we are probably paying more than someone who doesn't have that health issue but it isn't unreasonable. I am sure there are more people out there like me who need a service like this and I would be proud to help them. So that is my motivation. Of course, I want to make money as well but not if I can't be proud of what I am offering.

Any more advice that you can give is welcome.

Thanks again for your help!
Leanne

[FloraShakesItUp]

Without rewriting what I have here, I also wanted to point out, that the leads you have for 5 weeks... if they are not sold a policy, recycle back into the list. yes you are an independent agent.

Hi! I thought I would see if I can clear this up for you, as the original company I was looking into was NAA. First, yes you have to PAY for your leads. They are rated and price depends on their rating. Second, they write their business on the amount of your mortgage, meaning they market it as a mortgage protection, these are the only families they help... the ones that have mortgages... this cuts your business back since your client base is limited to them owning a home. Third, I went to a few trainings, and to me it seemed they are all about money! Not saying all meeting are like this, but majority was about the money you make in insurance. Fourth, and to me this is the biggest and I will say why afterwards, you pay full prelicensing cost and state exam costs, this is a pretty hefty amount. For me this would have been almost $1,000, because I learn better in person than online.

I decided to go with Primerica. 1) They are HELPING families get OUT of DEBT and essentially teaching them HOW to fund their own retirement! 2)They have the outlook of *friends and family* to help with training and making a client base. This is important because say you have agent A some random person and agent B a close friend or relative, they both come to you with a plan for policy, both are equally as good, which are YOU more apt to go with? 9 times out of 10 the average person will go with Agent B, because there is a personal relationship there! 3) They're trainings are phenomenal! They are truly there to help their agents succeed and become financially independent! With Primerica, yes you pay a $99 IBA fee... this covers your prelicensing course AND your state exam fee is REIMBURSED to you! And after one year, with certain criteria met, they pay for your securities license as well.

I hope I was able to give you some insight to NAA. Sure, externally they seem great! They flaunt their money to show you 'how much you can make'. But everything that looked like pluses to me, I now see WHY those things aren't so great!

[FloraShakesItUp]

I just finished my pre-licensing and hoping to schedule my state exam in the next week or two.

Originally Posted by Cornelius

Theres a bit more to all this beyond leads. Just as some thoughts there's also the consideration of the agent contracts ( Hardly no one reads their agent contract) and products available to market. Captive vs being independent, especially if part-time. Mama 2 three are you licensed?

[amiworld]

Way to Success Make Money Online

[FloraShakesItUp]

that statement was geared towards NAA. It looked so good, mostly because I didn't know of any other companies. But once I learned of other companies, NAA didn't look so good, mostly because at trainings all they talked about was the $$ that could be made.

I have heard great, good and bad things about Primerica. So far I found my RVP and recruiter to be very helpful, and the trainings are really good. If worse comes to worse and it doesn't work out, my husband pointed out, it's ok, you got your license for $99 instead of the 600-700 I was looking for classes fee's exam, and everything. But so far, it's going great, and I am comfortable with my decision.

Wow, that turned out quite long winded! lol

Originally Posted by Cornelius

Here's a bit of advice for the test. Read the questions slowly and carefully. Pay special attention for the word except in the questions. The test isn't hard they just try to trip you up. Also you may want to test as soon as possible because the information is fresh.

I used to be a PFS agent at one time myself. Your statement "But everything that looked like pluses to me, I now see WHY those things aren't so great!", Rang true to me. I wish you the best...

[Leanne McGarr]

I guess I don't understand why people talking about money is a bad thing. I heard the same thing from another insurance guy. you shouldn't get into insurance for the money. Well, excuse me. I am pretty sure he is making a hefty profit and he doesn't seem to be thinking he is wrong for making that money. Just because the money potential to be made is what interests you to begin with doesn't mean that you shouldn't do your best to help your clients get what they actually need. That is up to an individual.

I don't know much about Primerica except for that they have talked several of my friends into rolling their credit card debt into a second mortgage. Now to me, that should be what offends people. Why would anyone take unsecured debt and secure it with the most important asset they own? Both of my friends that have done that have regretted it and all the financial advisors that I know of will tell you that is the wrong move.

So my point, is that there is good and bad with any company but I don't think that people looking at doing something to make money is a bad thing.

[FloraShakesItUp]

oh i know i understand. I guess my reply maybe sounded a little short, after re-reading! lol I understand completely though and it is very true that we have to work with what is a best fit for each of us. Though maybe in the future, I may look into broader horizons, or whatever, but at least to start, I think PFS is the best fit for me! =)

Originally Posted by Cornelius

Ma Ma 2 Three i'm not going to blast PFS. For some people it's the place that's just perfect for them. I was just trying to convey that the statement rang true for me also. I have nothing against NAA, PFS or anyone. We all have to work best with who we feel is best for us as individual business people..

[FloraShakesItUp]

that per se is not a bad thing, as you said, the income is what interests many people in the business. However, when you go to a "training" meeting and the whole thing is about all the money they are making, vs. the training that it should be... then you have to kind of step back and think about why that may be. As I said originally, this may not be with every NAA meeting, or agent. =)

Originally Posted by Leanne McGarr

I guess I don't understand why people talking about money is a bad thing. I heard the same thing from another insurance guy. you shouldn't get into insurance for the money. Well, excuse me. I am pretty sure he is making a hefty profit and he doesn't seem to be thinking he is wrong for making that money. Just because the money potential to be made is what interests you to begin with doesn't mean that you shouldn't do your best to help your clients get what they actually need. That is up to an individual.

I don't know much about Primerica except for that they have talked several of my friends into rolling their credit card debt into a second mortgage. Now to me, that should be what offends people. Why would anyone take unsecured debt and secure it with the most important asset they own? Both of my friends that have done that have regretted it and all the financial advisors that I know of will tell you that is the wrong move.

So my point, is that there is good and bad with any company but I don't think that people looking at doing something to make money is a bad thing.