Life Insurance Companies Prosper by New Agent Trainees Failing


Let’s tell the truth and nothing but truth. This report contains information that very few life insurance career agencies would wish to release. New agent trainees must be able to understand the business practices of life insurance companies that they represent. Do you think the life insurance company wants you to know that an agent who fails to make the grade is worth significantly more than one who marginally continues?

An agency with a larger staff often has 150 trainee agents. This means that over 90% of the agents are not up to standard, or enough to last twelve months. This often leads to three sales managers overseeing a team of 30-40 licensed agents. This amount is growing at a snail’s speed.

Answering a lure advertisement is the only mistake these trainee agents make. Catching agents’ attention is the first step in baiting the trap.

Agent Bait

Two emotions that many adults struggle to cope with are unemployment and fear. Fear of unemployment and minimum wage work increases fear and makes it difficult to make ends meet. These adults feel greedy and are able to make more than they ever imagined. Life insurance is skilled at putting carrots in front mules. Their Sunday newspaper classified ads feature cleverly written emotions and bizarre solutions. Selling insurance is a different proposition than flipping burgers. You can make $100,000 per year in a very short time.

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It’s not unusual for two dozen agents to inquire about a single ad promising a rainbow of benefits. A sales manager may spend 15% to 20% of their time interviewing agents and 20% more time monitoring the progress of new agents on the sales speech and product portfolio. All actions taken before an agent attempts to sell life insurance or other health products.

Life insurance agents often leave the industry before 12-18 months have passed. There are many reasons. The lack of support and concern from sales managers is the main reason. The insurance agency used shady, dubious tactics to deplete the agent’s persistence. The agent had to accept reality and was forced to leave.

The life insurance agents who are dead (gone) are more valuable than the people who work for them.

What does it sound like to make a profit of between $100,000 and $350,000 per deceased (former) agent? After deducting commissions earned or fronted by insurance agents’ sales efforts, this amount will be.

It is possible to write 100 policies per year with an average premium $850 for a large number of agents. Agents who leave are responsible for the first year’s premiums and any renewals. Potential annual premiums of $85,000 remain. It is worth looking at each year with no death benefits and a modest 85% renewal rate. First renewal year = $72,250,00 profit. Year 2 = $61,412.00; year 3 = $52,200.00; year 4 = $44,370.00; year 5 = $37.710.

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The company earns $267,942.00 from the no longer available, sub-par agent

Potentially, the insurance agency or company can earn more from the former agent than the life agent who stayed with them for five years. There are no office rentals fees or lost time training the departed agent.

Can this trend be reversed.

Absolutely, without any doubt has the answer. Career life insurance agencies want to be profitable. This trend is unlikely to be reversed by many, if any. Their transparent, superficial operation works just fine. It is sometimes called the masses-of–form under the table in company management discussions.