New York Life Insurance Company has a large and successful client base. Do not think that life insurance careers can be easy. Personal financial representatives are not entry-level careers. You want the truth about personal financial representatives and life insurance careers? This article will provide the facts.
Years ago, 15% of women who entered life insurance careers were female. With career life insurance companies such as New York Life Insurance Company, that number is close to half of today’s women. Their recruiting numbers are also rising in an already saturated industry with too many life insurance agents. This is a marketing strategy. You can instantly project a sense of prestige and easy cash by changing the name. But, you should ask yourself why New York Life Insurance Company is called New York Financial Company. It’s just a name-game.
FACTUAL INFO In the first year and half of a new recruit’s career, insurance agents and so-called personal financial representatives (or recruiters) have struggled to increase their retention rates. Ten years ago, 86% left life insurance sales within their first 18 months. Today, that number is only 85%, with 15% remaining. Only 7% of those who have gained experience over four years are still around, and gender is not an issue.
How is it possible for a respected company such as New York Life Insurance Company to hire more than 3,500 employees in 2008? They expect to appoint 3,200 financial representatives in 2007 and 3,500 in 2009. This adds up to 10,200 untrained reps over three years. The total agency staff at this financially sound company, founded in 1845, is slightly more than 11,500. These are all not younger financial representatives. The most common interpretation of new employees retaining a long-lasting career is False. Analytical studies of New York Life Insurance Agents show slightly higher retention than other agencies. Similar insurance providers lose at least 70% of their first year agents.
New York Life Insurance Company has low retention rates. They have been able to implement a strategy that few other companies have attempted to copy over the past 10 years. This strategic approach involves recruiting “financial representatives”, agents with an emphasis on cultural diversity. This is a rapidly growing area that is not served by agents who are of the same nationality or can speak the language. This strategy includes personal representation to Chinese, Koreans, Vietnamese, India and other cultural residents.
New York Life Insurance Company employs a large number of agents to ensure that they have the best possible staff. However, it is still the same numbers game as other companies. It is actually a profitable practice for the insurance provider because departing agents forfeit 100% of the premiums collected to it. This distinction is to the credit of New York Life Insurance Company. They have been the MDRT million-dollar roundtable’s most active members for many years. However, this does not mean that they will make a million. MDRT premiums and selling principles are reviewed annually to ensure that only the best qualified candidates qualify.
A new financial representative is not an agent. This is why calling a new financial representative or advisor a financial agent hurts all of the experienced and knowledgeable personal financial planners and financial representatives. New York Life Insurance Company offers new recruits the chance to offer vital insurance protection and advice. Let’s be honest. A trainee agent is unable to prospect and sell life insurance effectively. This is why the industry turnover is so high. Selling life insurance to pay off a mortgage or cover funeral expenses is far from offering the expert financial advice that a professional can provide. A variable contract license does not necessarily mean that an agent is qualified to sell investment products.
To be able to offer advice, a true financial representative must have the right qualifications. This involves meeting wealthy to semi-wealthy prospects to discuss their financial situation and to advise them on how to plan it. Planning could include rearranging assets worth hundreds of thousands of dollar. Even the most skilled financial planners can be given the cold shoulder when clients see their wealth accumulation cut in half due to the economics of the past. New York Life Insurance Company has some of the most experienced financial representatives in business. These professionals have a combined average of 10 years of continuing education and specialization, as well as various certifications to prove their skills.
A trainee agent is in the wonder year. Selling enough insurance to last the crucial beginning years is a difficult task. Agents living in $45,000-per-year areas are often thrown into the fire by their lack of exposure to million-dollar clients. Salespeople all have a comfort level in selling, starting with prospects at their level. This level slowly increases as you gain product knowledge and sales skills. Agents who are comfortable working with clients earning $50,000 per year will struggle to adapt to the $200,000+ income bracket. A hardworking life insurance agent is sufficient for middle-class Americans. They don’t need a financial representative.
Is it possible for a new financial representative to succeed? New York Life Company offers quality training but it does not guarantee success. After 25 years of experience as an advisor in insurance, I have determined that NO is the correct answer. If a rep has all of these qualities or characteristics, I can convince them to give me a 50/50 chance. The business requires that you are financially sound, have no credit card debt, and have a good nest egg. It is a plus if you can speak fluently another language and will be focusing on your ethnic group.
In the beginning stages of your career, the average insurance agent will earn around $25,000 annually. This is why you should view it as a building process. In the first four years, only a small percentage of financial agents and insurance agents earn $100,000. Although product knowledge and selling skills can be learned over time, it is not necessary to have other career options. You must have an extraordinary level of determination and self-confidence. You must also be able to take what you have been taught and tweak it until it is perfect.
You are not in the business to represent a company, but you are in it for yourself. Only those who can separate themselves from the rest of the failures will reap financial rewards. If you feel that you are still capable of handling the challenges after reading this article, you may be able to make a career with a New York Life Insurance Company.