I have 25 years experience owning and then managing a business- to -business distribution company in the Philadelphia area. Major burnout is settling in so I just obtained my Life license and thought I would take advantage of the seemingly good opportunitiues selling Final Expense and Morgtgage protection, starting out pt.time and then transistion into full time.
Companies I spoke to provide leads and support. While investigating I came across the State Farm opportunity and based on my resume and experience, they seem to like what I can bring to the table.
Is the Final Expense and Mtg. protection opportunities legit? and can a State Farm Agent make $150k a year which is what I make now and need to continue with. Any other suggestions?....my Sales, Marketing and Mgmt skills are at a high level with a solid track record.
Thank you very much!
51 yr old Manager looking at Career change into Insurance
Moderators: Josh, independent guy
Career Change
Howard, I'm impressed if you are making much of anything with final expense & mortgage protection sales. That's a hard to sell market that takes hundreds of leads to make a few sales.
If you want to go to a captive agent company SF is as good as the rest and they all have their quirks. For a somewhat negatively biased opinion go to SF's agency assocation, http://www.nasfa.com.
Life only sales is tough and is usually most lucrative if you have an "in" to high worth clients who need big policies. FYI State Farm would probably require you to use their life products which might not be very competitive.
Good luck and go for it,
Kevin R
If you want to go to a captive agent company SF is as good as the rest and they all have their quirks. For a somewhat negatively biased opinion go to SF's agency assocation, http://www.nasfa.com.
Life only sales is tough and is usually most lucrative if you have an "in" to high worth clients who need big policies. FYI State Farm would probably require you to use their life products which might not be very competitive.
Good luck and go for it,
Kevin R
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christymarie67
- Insurance Journal Fan
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- Joined: Thu Jan 03, 2008 12:53 pm
Howard,
This is a great business to be in, if you like being able to hold your customer's hand after a serious accident and help put everything back together, if you like knowing that you helped them prepare and that they're going to be okay, and if you like fulfilling the noble purpose of protecting people's dreams from financial ruin. It's not so good if you get bogged down in the daily grind of phone calls, sales, servicing, rejections, and repeated voice mails. Just remember that all businesses have those negatives, but only insurance allows us to fulfill such a glorious noble purpose. I have been in the business 15 years, and I can't imagine doing anything else.
Most of my career has been as an executive at insurance companies' home offices. I was burned out at 40, so I left a job in the mid-100s (plus bonuses) to open my own agency. I'm mid-way through my first year. It is difficult to build the business from scratch, and it will take a lot of energy and a lot of hours, but it is also very rewarding. I hope I never have to go back to a company job!
Spend a lot of time on the numbers in your business plan. Pay close attention to the commissions and average premiums, and the number of sales you will have to make in a day to earn $150,000 in a year. If you plan to work simply as a salesman in the retail arena, you will not make $150,000 a year. You just can't sell that many policies in a day. Period. Life-only sales, especially the burial policies you mentioned, will be very difficult, and you're even less likely to make that kind of salary.
But here's the good news: With your business owner's background, you can make $150,000 or more as an agency owner. A SF agent or an agent for another company, or even independent, can make $150,000 after the start-up phase. That is very attainable. Not all agents make it, but it is doable.
Do you have the financial means to buy an existing agency? If so, and if you can find the right one in your area to buy, then do it!
Otherwise, starting a scratch agency takes more time. If you do the due diligence I mentioned above, you'll see that you can't make that kind of living on new business only, but this is a pecular business in that you make your money off of your renewal book. New business is often a loss leader for the agency owner, after you pay fixed expenses, marketing, and producers' commissions. But you expect most of those policies to renew, and you the owner get the renewal commissions. Eventually your book of business is big enough to fund your expenses. It takes some time to build your book, and I don't know of any opportunities where you can make $150,000 as a scratch agent; but in time you'll be at that level.
Whichever route you go, I wish you the best!
Christy P
This is a great business to be in, if you like being able to hold your customer's hand after a serious accident and help put everything back together, if you like knowing that you helped them prepare and that they're going to be okay, and if you like fulfilling the noble purpose of protecting people's dreams from financial ruin. It's not so good if you get bogged down in the daily grind of phone calls, sales, servicing, rejections, and repeated voice mails. Just remember that all businesses have those negatives, but only insurance allows us to fulfill such a glorious noble purpose. I have been in the business 15 years, and I can't imagine doing anything else.
Most of my career has been as an executive at insurance companies' home offices. I was burned out at 40, so I left a job in the mid-100s (plus bonuses) to open my own agency. I'm mid-way through my first year. It is difficult to build the business from scratch, and it will take a lot of energy and a lot of hours, but it is also very rewarding. I hope I never have to go back to a company job!
Spend a lot of time on the numbers in your business plan. Pay close attention to the commissions and average premiums, and the number of sales you will have to make in a day to earn $150,000 in a year. If you plan to work simply as a salesman in the retail arena, you will not make $150,000 a year. You just can't sell that many policies in a day. Period. Life-only sales, especially the burial policies you mentioned, will be very difficult, and you're even less likely to make that kind of salary.
But here's the good news: With your business owner's background, you can make $150,000 or more as an agency owner. A SF agent or an agent for another company, or even independent, can make $150,000 after the start-up phase. That is very attainable. Not all agents make it, but it is doable.
Do you have the financial means to buy an existing agency? If so, and if you can find the right one in your area to buy, then do it!
Otherwise, starting a scratch agency takes more time. If you do the due diligence I mentioned above, you'll see that you can't make that kind of living on new business only, but this is a pecular business in that you make your money off of your renewal book. New business is often a loss leader for the agency owner, after you pay fixed expenses, marketing, and producers' commissions. But you expect most of those policies to renew, and you the owner get the renewal commissions. Eventually your book of business is big enough to fund your expenses. It takes some time to build your book, and I don't know of any opportunities where you can make $150,000 as a scratch agent; but in time you'll be at that level.
Whichever route you go, I wish you the best!
Christy P
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d's insurance store
- Insurance Journal Addict
- Posts: 350
- Joined: Tue Mar 14, 2006 11:04 am
Pardon my cynacism
I for one would recommend that you get some insurance selling experience before making a career leap that may or may not suit your style and abilities.
Hustling for Life Insurance, especially the mundane mortgage cancellation and final expense market is one very tough way to try and start from scratch and make a living.
The reason why State Farm is interested in you is because you probably present with a skill set and life experience resume that is a big cut above what their local manager recruiters normally look at. Keep in mind that although you can learn the personal lines, limited commercial and limited financial (life, annuity, mutual fund) sales stuff from a captive environment such as State Farm, you'll end up being a jack of all trades, and State Farm will have the screws to you to not only sell the bread and butter auto/home/renters/small business, but they'll expect you to produce copious amounts of life/annuity/other financial sales stuff.
The reality of insurance selling in the modern world is that the auto/home/personal lines business can be easy, depending on your rates and competitive positioning, especially with a brand name like State Farm. It's the financial sales that come a lot harder and require a great deal of persistancy, follow up and ability to withstand constant rejection.
When you hitch your wagon to a captive, you end up at their mercy as to how your rates will compare to the other companies when people go shopping for the car/home business. Like it or not, and contrary to what the sales managers will say, it's still largely a price driven marketplace for those products. Also factor in the modern era of many people buying those products on line, without the perceived need for an agent. The old school business plan of hanging a sign and putting a large ad in the Yellow Pages and then joining the local service clubs and chamber of commerce and sitting back and answering the phone and writing business are largely dead. Unless you're in a growth area, the only business you'll be able to get (other than your friends and relatives who are not already insured with State Farm) will be take away business from other carriers, and you'll have to make a compelling argument to get people to switch.
Can it still work? Well, given the right set of circumstances, good rates, a sound business plan, some degree of new growth and your own abilitites, yes, you can develop a viable career as an agency owner. But before sinking all of your savings dollars and age 50+ efforts into this (or any other business), please be really sure it's for you. You can do that by working part time for a current agency in either commercial or personal lines. There are schools of thought advocating for both, or you can always to the way of the general practicioner.
Good luck.
Hustling for Life Insurance, especially the mundane mortgage cancellation and final expense market is one very tough way to try and start from scratch and make a living.
The reason why State Farm is interested in you is because you probably present with a skill set and life experience resume that is a big cut above what their local manager recruiters normally look at. Keep in mind that although you can learn the personal lines, limited commercial and limited financial (life, annuity, mutual fund) sales stuff from a captive environment such as State Farm, you'll end up being a jack of all trades, and State Farm will have the screws to you to not only sell the bread and butter auto/home/renters/small business, but they'll expect you to produce copious amounts of life/annuity/other financial sales stuff.
The reality of insurance selling in the modern world is that the auto/home/personal lines business can be easy, depending on your rates and competitive positioning, especially with a brand name like State Farm. It's the financial sales that come a lot harder and require a great deal of persistancy, follow up and ability to withstand constant rejection.
When you hitch your wagon to a captive, you end up at their mercy as to how your rates will compare to the other companies when people go shopping for the car/home business. Like it or not, and contrary to what the sales managers will say, it's still largely a price driven marketplace for those products. Also factor in the modern era of many people buying those products on line, without the perceived need for an agent. The old school business plan of hanging a sign and putting a large ad in the Yellow Pages and then joining the local service clubs and chamber of commerce and sitting back and answering the phone and writing business are largely dead. Unless you're in a growth area, the only business you'll be able to get (other than your friends and relatives who are not already insured with State Farm) will be take away business from other carriers, and you'll have to make a compelling argument to get people to switch.
Can it still work? Well, given the right set of circumstances, good rates, a sound business plan, some degree of new growth and your own abilitites, yes, you can develop a viable career as an agency owner. But before sinking all of your savings dollars and age 50+ efforts into this (or any other business), please be really sure it's for you. You can do that by working part time for a current agency in either commercial or personal lines. There are schools of thought advocating for both, or you can always to the way of the general practicioner.
Good luck.
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d's insurance store
- Insurance Journal Addict
- Posts: 350
- Joined: Tue Mar 14, 2006 11:04 am
State Farm's Promises
Please keep in mind that the only purpose for a State Farm (or any other captive company) recruiter/manager is to put a body in an office with a company sign out front.
These guys and gals tend not to have any real insurance experience and also tend not to have any business experience either. They're working out of a 3 ring binder play book that the folks in the home offices think is the proper way to run a business, and believe me, there's no consideration for rates or competitive positioning in your proposed marketplace. These senior managers are so inbred and narrow minded, they can't understand why the insuring public doesn't flock to their brand, plunk down money and walk away satisfied with the thought of buying life insurance on their next visit. And the only reason the crowds aren't pounding down the door is that 'lazy' agents aren't working the phones with outbound calls at dinner time making prospecting, x-date calls.
This is NOT to say you can't be successful as a State Farm agent in your local area. There are lots and lots of agency owners who've carved out very successful careers with State Farm...you just want to be sure that today's State Farm offers you an opportunity in the current marketplace. Just understand your motives are different from the company. They don't really care how long you last, and they won't take a lack of competitive rates as an excuse.
If you're impressed with the State Farm system, then my suggestion is to take a day trip about 70 miles from where you might locate, stop in at some State Farm offices and have a heart to heart talk about what the business is really like when you hang their sign out front. The geographic distance should let them feel comfortable talking to you as someone who won't be directly competing with them.
Then, make some calls of your own to State Farm and other companies acting like you need a quote. You'll find out real quick if your proposed partner is competitive.
Treat this whole project as a business and think before spending any of your money. You can live the insurance selling experience without the need for your own capital just by signing on as an agent with any one of a number of companies or agencies. My guess is you'll find out rather quickly if it's a good fit for you.
These guys and gals tend not to have any real insurance experience and also tend not to have any business experience either. They're working out of a 3 ring binder play book that the folks in the home offices think is the proper way to run a business, and believe me, there's no consideration for rates or competitive positioning in your proposed marketplace. These senior managers are so inbred and narrow minded, they can't understand why the insuring public doesn't flock to their brand, plunk down money and walk away satisfied with the thought of buying life insurance on their next visit. And the only reason the crowds aren't pounding down the door is that 'lazy' agents aren't working the phones with outbound calls at dinner time making prospecting, x-date calls.
This is NOT to say you can't be successful as a State Farm agent in your local area. There are lots and lots of agency owners who've carved out very successful careers with State Farm...you just want to be sure that today's State Farm offers you an opportunity in the current marketplace. Just understand your motives are different from the company. They don't really care how long you last, and they won't take a lack of competitive rates as an excuse.
If you're impressed with the State Farm system, then my suggestion is to take a day trip about 70 miles from where you might locate, stop in at some State Farm offices and have a heart to heart talk about what the business is really like when you hang their sign out front. The geographic distance should let them feel comfortable talking to you as someone who won't be directly competing with them.
Then, make some calls of your own to State Farm and other companies acting like you need a quote. You'll find out real quick if your proposed partner is competitive.
Treat this whole project as a business and think before spending any of your money. You can live the insurance selling experience without the need for your own capital just by signing on as an agent with any one of a number of companies or agencies. My guess is you'll find out rather quickly if it's a good fit for you.
Howard's new career
Howard, busting into the life insurance / financial services industry is really tough! I was going to give you a real long desertation on "who to see, who to talk to..." but I won't, since you are from Philly...
So I'll say this... Lincoln National Life is based in your town. Seek out a Lincoln Life person, get a referral to the area agency and visit with some of the front-line producers.
Lincoln does it as good or better than anyone. They have a saying... They want you to be in business for yourself, but not BY yourself!
Lincoln has a good variety of financial products, and if they don't manufacture it themselves they bring in other carriers' products to fit the need.
State Farm will not do this, not in the same capacity, anyway.
Talk to the Lincoln Agency head, and then spend some time with the agents (both seasoned and newer). You'll get a good idea of exactly what is involved. You owe it to yourself!
Swymmer
So I'll say this... Lincoln National Life is based in your town. Seek out a Lincoln Life person, get a referral to the area agency and visit with some of the front-line producers.
Lincoln does it as good or better than anyone. They have a saying... They want you to be in business for yourself, but not BY yourself!
Lincoln has a good variety of financial products, and if they don't manufacture it themselves they bring in other carriers' products to fit the need.
State Farm will not do this, not in the same capacity, anyway.
Talk to the Lincoln Agency head, and then spend some time with the agents (both seasoned and newer). You'll get a good idea of exactly what is involved. You owe it to yourself!
Swymmer
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grandcanyonquotes
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Insurance Agent
State Farm probably still is the Cadillac of all insurance jobs but don't discount the independent insurance opportunity. You may better commissions but again, S F has the name recognition you would enjoy.
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Howard
- Insurance Journal Fan
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- Location: Philadelphia Suburbs
Re: Insurance Agent
appreciate the comments!
thanks
thanks