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 Posted: Thu Feb 19, 2009 8:11 pm Post subject: Should I use a GA ( general agent ) |
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I am just getting started in the insurance industry and was wondering if I am going to be independent should I use a GA general agent.Do they help you if you are new and are they worth it or is it like being captive.
What are some good ones to talk to. |
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TLE
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| Posted: Fri Feb 20, 2009 4:46 am Post subject: |
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| what kind of insurance are you looking at selling? |
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Jim
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| Posted: Fri Feb 20, 2009 5:59 am Post subject: |
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| I am looking at P&C and Health and Life.Being new I would to talk to someone that will give it to me straight and offer good training. |
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TLE
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| Posted: Fri Feb 20, 2009 11:33 am Post subject: |
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What state are you in TLE?
Do you understand that (Life and Health) and [Property and Casualty] are two distinct and separated sectors of the insurance industry?
No one agent, regardless of who they are, really does both.
They are either predominately a Life and Health agent or they are predominately a Property and Casualty agent.
The two really don't mix, although State Farm and Allstate would argue that.
One is insurance sales, (L & H) and the other is risk management, [P & C].
You couldn't give me a P & C license and most P & C agents would be out of the insurance business in 10 minutes if they had to prospect for life, health, disability income, annuity, long term care or help set up Qualified Income Trusts for Medicaid qualifications, A-B trusts to mitigated Federal Estate Taxes or bother with Irrevocable Life Insurance Trusts.
Before the hate mail starts... that's not to say it can't be done or that large P & C agencies don't have Life and Health agents to write that business.
So my question is....
Are you more inclined to be an insurance technician (P & C) or are you more inclined to interact with people as human beings? (Life & Health)
Money has nothing to do with this.
Whether you're P & C only, Life & Health only or P & C AND Life & Health...
It doesn't matter;... insurance agents make lots of money.
By the way, that's a good thing, does anyone want to do business with a broke insurance company or with an agent who's barely scraping by to make ends meet?
Selling insurance is simple… but it's not easy.
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GarySpicuzza
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| Posted: Fri Feb 20, 2009 7:33 pm Post subject: |
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| I am in life and health if you want to talk I would be glad to do you have a e-mail or phone number to contact you at? |
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Jim
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| Posted: Sat Feb 21, 2009 3:41 am Post subject: |
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That would be good my email TLE4[at]comcast.net.
As to gary I am in PA. I do think money does have something to with it.Even if you like your job no one does it for free and when you are new, one of the first questions you ask is what is the pay.I wanted to do P&C and health and life because I want to be able to offer a cust all services and the more you offer the better you have in making it, my opion.You said they are to different things but are they not different things but in the same field.I know I am new and might not know what I am saying but I know me and if it is possible to do both I will push myself to do it I don't whant to wait for it to come to me I want to go get it. Thanks |
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TLE
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| Posted: Sat Feb 21, 2009 1:29 pm Post subject: |
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hey TLE. nice to have enthusiasm to do both, but when it come to practical aspect you won't find any time to both of them withh same accuracy and good customer satisfaction.
it will be possible only if you have some helping hand from your spouse in this as you can offer both the services ( life & health and P & C ) to the client.
One more thing to add you may become master with both the segment in terms of knowledge but will it be possible for you to simultaneously resolve the issues of two different clients one from life & health and the other from P &C.
Only time will be a constraint, if you can cross this barrier, then surely you will achieve what you are longing for. 
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amit
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| Posted: Sat Feb 21, 2009 9:04 pm Post subject: |
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| Let me ask you a question then. If I start off just doing one first then see if I want to add the other which one would be better to start with they both interest me. So what would be better being new which one might be easier which one could I make more money at and whch one is there more support for.I know alot depends on me but lets just say I put all into both. Thanks |
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TLE
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| Posted: Sun Feb 22, 2009 4:39 am Post subject: |
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Maybe doing both can be a long term goal but I agree...pick either LH or PC. Too much to learn. Master one area & then add the next.
I do L&H. Have no interest in PC and couldn't do all of it well.
Good Luck!
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mip
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| Posted: Sun Feb 22, 2009 6:17 am Post subject: |
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L&H and P&C (as Gary said) are completely different areas of insurance. They involve a different skill set and pay commissions in different ways. Just think of it this way. You are required to buy auto insurance. Its the Law. The only questions is from whom and for how much. With Life insurance you are not required to buy it so there are completely different sales skills involved. Also (again as Gary mentioned) once you get beyond basic term life sales there is a complex ever chaining world of estate planning, business insurance planning, defined benefits plans, COLI/BOLI, etc.........
Let me also explain the difference between how the commissions work. In life insurance (and I actually don't even group Health insurance in there because that is a whole different area also) you get paid a percent of the first year premiums. For example: If you sell a $100/month term policy ($1,200 Annualized) and your percent of target is lets say 80% then your commissions will be 80% of $1,200 or $960. There will be very little (if any) residual commissions from a Life sale. In P&C you make significantly less but you make it every year (or 6 months) that your client buys the insurance through you. for example: if you sell a $100 per month Auto policy you may be paid 10% of $1200 per year or $120. But you get that $120 every year that the client is a customer.
In my opinion (which is skued becasue I work in Life insurance) is it is harder to start as an independent P&C agent just because you get paid much. You need to build a large book of business just to make a living (albeit that income will continue year to year minus attrition). While if you sell on big Life policy you can pocket 20-30k or more with one policy.
Also you will not have the time to learn life insurance really well while working with P&C. I work with a lot of agents and i have never met any agent that was really proficient in both. Working in P&C take a lot of time....especial when you are just getting started. Not saying it is bad to get into but i think it will be very hard to do both well initially. Most agents that i work with who are very very successful have a specialty. Weather it is Health insurance, Estate Planning, BOLI, etc....
Just some thoughts. |
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Marpol
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| Posted: Sun Feb 22, 2009 11:11 am Post subject: |
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Great post Marpol!
Well written and exactly correct.
@ TLE, have you noticed that no P & C agent or State Farm agent or Allstate agent has come on this thread to dispute what has been written by me and now the very well spoken Marpol.
Let's pick on State Farm.
A State Farm agent can sell life and health insurance, they can sell auto and homeowners insurance, they can sell business liability insurance, workers compensation insurance, they sell Probate Court bonds for the personal representative of the Estate, they can sell mutual funds and there is even State Farm Bank!!!
Now a State Farm agent is an Insurance Professional in every sense of the word. To become a State Farm agent you have to have a college degree and NO PREVIOUS INSURANCE EXPERIENCE.
All that being said what does a State Farm agent actually sell?
Auto Insurance and Homeowners Insurance, that is their bread & butter product.
But not exactly the business State Farm wants. The business State Farm wants (and every other insurance company out there) is your life insurance and annuity business. Why? Because that's where the money is,... in the insurance business.
State Farm recently announced it was dropping out of the Florida market for virtually all forms of their P & C business EXCEPT:
#1) Auto Insurance;
and
#2) Life Insurance.
Why you ask?
Because advertising for auto insurance is a prospecting method employed by State Farm (and every other insurance company out there) to get a client in the door to sell them life insurance and annuities.
Now, there is nothing wrong with that. Marketing is marketing. But if you want to be successful in the insurance business you need to understand there are really only two (2) products insurance companies are interested in....life insurance and annuities.
So what's my point?
You need to understand that.
Insurance sales is about selling insurance to persons you suspect NEED your product or services.
Professional insurance sales is NOT something you do to someone, it's something you do for someone.
And, TLE may I ask, are you even licensed yet in any capacity?
If not, you are polluting your brain here on this message board with insurance facts that have nothing to do with passing your state's licensing exam. Until THAT hurdle is overcome you're just wasting your time with talk.
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GarySpicuzza
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| Posted: Sun Feb 22, 2009 12:03 pm Post subject: |
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| Quote: | State Farm recently announced it was dropping out of the Florida market for virtually all forms of their P & C business EXCEPT:
#1) Auto Insurance;
and
#2) Life Insurance.
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the main reason what i can assume about this move could be
As with vehicle it is law so people need to buy the insurance cover.and with life insurance it is need (basic) for every individual.
whereas what i see in other P&C products is either people are unaware about the different products available ( or even aware about it they won't find it urgent or there is not a big business available in these segment.
One more proposition could be for other P & C products , most of the time a big chunk product which are offered to corporate, so it doesn't require big marketing if the setup is already there.
this could be the reason companies are focusing more on those areas where they see untapped potential for business
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amit
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| Posted: Sun Feb 22, 2009 8:25 pm Post subject: |
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Gary....you have taken the words out of my mouth....Very very good points.
Let me expand on this a little more. And TLE please do not think that we are bashing P&C agent or that business. we are just trying to explain that it is a DIFFERENT business. And weather you believe it or not the only real similarity between the two is the work insurance in there names.
I used to work for Allstate as a life expert for there P&C agents....not the best gig in the world but we all have to pay our dues right.
one of the benefits of working with Allstate, Statefarm, Farmers...etc. is that they subsidize your business.....basically they pay new agents a salary and some of there business expenses until they get on there feet...normal about 2-3 years. Why would that do this? it is because P&C is a very very difficult and time intensive business to get into. I have actually worked with these new agents and they are always marketing and busting there buts to get enough polices so they can keep there subsidies. Most large P&C agencies (when i mean big i am talking 5000+ clients) have bought up smaller books of business in the area. Also most have suport staff to handle the intesive sevicing that goes with P&C....and there is a LOT of servicing. And i dont mean to insinuate that being a life agent is easy or that you dont need to bust your but.....but i do believe that the rewards are more with Life insurance (this is my opinion only).
It is also interesting that there is a fundamental deference in personalities between Life and P&C agents. IF you are in a room with 10 of each i guarantee in 5 min you will know what i mean.
I also agree with Gary in that if you have not yet gotten your license you should not even be worried about this yet. The skills to get your license do not correlate with real life. I believe there is a lot of experience here so if you have questions please do not hesitate.... |
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Marpol
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| Posted: Mon Feb 23, 2009 6:19 pm Post subject: |
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I thank you all for the info. I was asking the question because before I take the test should I not know which one to take P&C or L&H. I have been reading the books on both but I thought I would ask so that if I go with one I only have to learn that area
I did not mean to say that I was so good as I can do both with out a problem just seemed if I can offer more services the better I just wanted to know if it is done alot and before anyone makes a choice I want all the facts this is a big choice for me. |
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TLE
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| Posted: Mon Feb 23, 2009 6:43 pm Post subject: |
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| Quote: | | I want all the facts this is a big choice for me. |
hope you have got your choice!!!
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