They Only Want To Sell Your Friends And Family
If you are in your mid fifties, and have to re-invent yourself, a lot of people look at selling Life Insurance as a possible career choice, but don’t do it, and hears why. When it comes to hiring new agents, Life Insurance companies, LIE. The only thing, Life Insurance Companies are interested in, is your circle of friends and family. They look at new agents as Sales Funnels to new business. These companies have no incentive to limit hiring, they offer jobs to anyone interested and hope that a small percentage will at least be able to sell their friends and family. But Let’s start at the beginning.
Licensing Is A Cottage Industry
The whole Insurance licensing procedure, is a cottage industry in and of itself. In order to sell Insurance you need to obtain a license from the State in which you want to sell. In order to obtain such license, you need to pass the States Insurance examination. An exam based on a fifth grade reading level and can be passed with a few days of study. There are numerous testing companies approved by the State to give the examination, they charge anywhere from $90.00 to $125.00 each time you take the examination. Before taking the examination it’s strongly suggested, especially by the Insurance company, that you complete an on-line training course, there are many of these available on the internet and they charge anywhere from $100.00 to $200.00, depending on the license you’re seeking to obtain. Once you pass the test you are required to get finger printed and your background checked, this usually this costs anywhere from $15.00 to $25.00.
They Hire Almost Anyone
Most Insurance Companies prefer a College Degree but this is not mandatory. And while they prefer that you already be licensed this is also not mandatory. Actually a lot of Companies will help you become licensed, and it just so happens that they have the perfect on-line course for you, they may even offer a reimbursement, after you make your first sale. This should be illegal. They will often allow you to start training on their products before a license is obtained. All training is at your expense, and this should also be illegal.
You Don’t Get Paid
The majority of Agents work on a commission basis, which means that the pay is directly related to the sales you close. Most Insurance companies pay on a strictly commission basis with no base salary. All the training you attend comes at no cost to the company, they love not having to pay to train, this is also where they start pressuring you, to think about who among your family and friends, could use the policies being discussed. The trainer is required to go with you on any appointments you make, with your friends or family, and usually takes a piece of your commission if a sale is made. This is the sales funnel.
Like Working For A Call Center For Free
Most Insurance Companies state that they provide hot sales leads to their agents, this is a LIE. If the new agent doesn’t have a book of friends and family to start working, they are giving lists of names to start calling. These lists are bought wholesale by the Agency, and have normally already been worked by numerous agents for months, sometimes years. In essence the Insurance Company creates a free Call Center, using new Agents, with all the abuses of the worst Call Centers, with a bell to announce appointments made, creating a competitive environment, while insinuating, if your not willing to make at least 300 calls, and work an eight-hour day, at your expense, that your not really hungry enough, or dedicated enough to succeed as an agent for them. This practice should be illegal.
Selling An Intangible
The products that the Industry sells are basically solid, experts project a 22% growth in the industry through 2020, with the strongest segment being in companies that sell Long Term Care and other health related policies as the population ages. These are not impulse buys and the customer usually knows what they want and has already researched what they are looking for. These customers call Insurance companies looking for information they are not a good call center or door to door prospecting target. Even if you locate a good prospect, the product itself is hard to sell. While an intangible is always a hard sell because of the health questions insurance is even more so.
95% Of New Agents Fail Within One Year.
Industry Analysts place the burn out rate for 1st year Life Insurance Agents at greater than 90%. Fewer than 1 in 10 people who embark on a career selling Life Insurance remain in the business beyond one year. If your in a position to where you have to reinvent yourself do yourself a favor and don’t try to do it selling Life Insurance.
As Always, thanks for visiting. Dave