Don’t believe that life insurance companies are above the law. Life insurance companies take income from agents. The 4 ways that insurance companies fleece agents of their income are revealed in this article. Are you sure you are representing only the best insurance companies in America? You haven’t seen how agents income disappears.
The United States is a land of opportunity. This is particularly true for life, annuity and health insurance companies. There have been many stories about how petroleum companies take money from their customers at the pump. Life insurance companies leave the pumping customers to themselves. Instead, they leave the dirty work of pumping customers to their insurance agents who find more and more customers.
Many insurance companies have very specific plans. Some are designed to happen at lightning speeds so you don’t know what you will get. This article will expose some common mistakes and ones that make your dirty diapers smell like heaven.
The Premium Lot
This year, hundreds of thousands of insurance trainees will be employed. Life insurance companies are initially happy to have you on board. They will train you. In reality, training means helping to milk as many family members, friends, neighbors, and casual contacts as possible until the source runs dry. Every meeting will ask you how much money you have just earned. Selling relatives can be stressful. It is as hard as finding a new prospect as it is to sit in the dentist chair and listen as your dentist drills your teeth.
Over 250,000 insurance trainees will be lost this year. They will all fall under the insurance agent income premium plot. All policy owners are entitled to life insurance company benefits as soon as they leave. They immediately collect their first year’s premiums, and every year they renew. This could be called reverse lotto profitable. The agency could make a profit of $500,000 if it has 10 dropouts. Because you borrowed money to pay for expenses that the company had never reimbursed, you went into reverse.
The Handcuff Plot
Many career life insurance companies have money-fleecing contracts similar to yours. You may be tempted by a pitch fork in their contract. If you have written many policies over the years, you will start to collect renewal money. After the policy payments start a new year, these agent money renewals begin. Over time, the number of renewals could reach thousands. This provision doesn’t sound like something that the devil would do.
You suddenly see a more lucrative opportunity than you thought. Once you make the switch, the pitchfork will start to pounce on your pocketbook. It’s a bloody, unfair and one-sided affair. The lengthy contract that you have not read for years is then brought up. Your contracts with life Insurance companies state that renewals will cease if you quit the company. Your ex-life company will take every penny of your renewals that you had been counting on as income and grins.
The New Plot
This rate plot (or rat), had to be devised by a master of illusions or a group of them. It is a cruel act that agents find extremely cruel. ABC insurance buys all the current business of DEF insurance. ABC insurance has two goals. The first is to stop agents from paying renewal premiums. The second is to increase rates for people who have coverage. The new company notifies agents that their contract as an insurance representative has been cancelled and they will no longer be writing this type of insurance.
Imagine this: 80% of your income would be paid to the insurer. You would need to create a Plan B within a matter of hours. But you didn’t have a plan B. The new company rats have poisoned you.
The Guillotine Plan
Agent marketing recruiters spend a lot of time and money searching for other agents to sell their products. The contract the recruiter uses is often called MGA, or Managing General Agent. The recruiter provides an MGA, Managing General Agent, contract to the insurance writing agent. MGA 95% commission may be paid by the insurance company on any policy money collected. He might also pay a GA 75% commission on any policy money that the general agent collects. The broker could get 65%.
Marketing MGAs make their money by taking overrides. He receives 20% for a general agent, and 30% for a broker. He will be rewarded if there are enough producers who write business for him. A MGA can earn a good income by recruiting. This attracts many MGA’s to it. This is why there are over 15,000 insurance product marketers across the United States at any given time.
Life insurance companies want to make huge profits from the millions of insurance policies they have. They also plan to pay the producers in the quickest and most grueling way. The guillotine plan is implemented. The same letter is sent to all the General Agents and Managing General Agents. The insurance company “decided” that there will be only one contract level, and that it would be a broker. This is not a redistribution. This is about distributing all excess wealth directly to the already wealthy life insurance company.
These are only four examples of the plots that can be used. Each one has been a victim of mine, and many more. It is best to have company number two already established at slow cruise. Plan B can be put into place before you lose your job as an insurance agent.
Life insurance companies have many anti-agent time-bomb eggs. Many of them are concerned with making money and generating income for their agents.
