NLIC.org

Julie Said:

Is it smart for an 18 year old to sell life insurance?

We Answered:

It is unlikely people are going to want to purchase life insurance from an 18 year old. You can work for your uncle and learn the ropes, however it may be a few years yet before you can start building a portfolio of clients. People your age aren't buying life insurance, and people older than you don't want to buy from someone with no life experience.

Cecil Said:

Life Insurance?

We Answered:

First, you want to check out the links below to read my research about life insurance. I'm life licensed and securities licensed, so I created my own blog to give out information to the public.

Second, when you meet with the broker or agent, ask him or her bunch of questions.
1) What kind of life policy does he/she own and why?
2) If he/she starts talking something about cash value, ask wouldn't it be better to keep my savings away from life insurance?
3) Can he/she help you invest money away from life insurance such as mutual funds?
4) Can you add a spouse rider and/or a child rider to the policy?

Hey, maybe you can secretly record everything this agent or broker says and reveal your secret at the end by saying, "Hey, I recorded this entire conversation between us. Everything you said today, is it true or not? Is there anything you like to add before I sent it to my attorney for review?"

Craig Said:

Like AMFI certified MF advisors why Life Insurance AGENTS {not Brokers}are not permitted to canvass any Co.? ?

We Answered:

Dear friend
Nothing is done for free. Insurance companies and AMCs pay a fixed amount as commission to its agents for procuring business. They can do not employ directly to procure business. On your investments banks also make profits - a certain part of which is used for paying salaries and other expenses. Have you ever considered that of that? Can we ask the bank to pay us the entire profit. How do you expect them to function without charging anything to the customers?

Let us take another example. You might have noticed that salesmen of many companies approaching households to sell their products. Your neighbourhood shopkeeper does not offer any discount on the refrigerator you purchased even if you go to him directly. The cost of the refrigerator is inclusive of the salary to the sales people who canvas door to door.

Yes agents have a vested interest to some extent. They (including myself - an LIC agent and sell many other financial products) do it for a living. Insurance is sold not bought. If you take a group of 100000 people not even one person among them may ask for an insurance on his own. INSURANCE IS ALL ABOUT SECURING THE LIFE OF SELF AND DEPENDENTS from financial difficulties.

As of now IRDA does not allow insurance agents empanelled with one company to do business for other companies. But the situation may change in future.

AMFI is an association of Mutual Funds not an association of Financial Advisors. They conduct exams and issue license to agents.
In a few years time as far as AMCs are concerned agents may become redundant. Just like banks AMCs may start doing business directly by the help of transfer agents and/or online trading.

As far as insurance in concerned agents have no option but to sell the products of their ins company. In the case of MFs they are free to sell the products of any company. If you approach a company directly you are forced to purchase a product on offer. But the agents may offer you a lot more products from many more companies.

good luck!!

Dustin Said:

how much does a life insurance broker make on a $150,000 life insurance policy ($900/annual premium)?

We Answered:

Completely depends on the company's commission schedule. However, most companies pay the most commission in the first year of the policy and renewal commission thereafter.

I'll also add that the agent's expenses to write the policy must also be taken into consideration. Did the agent travel to you? If so, how far and how often? Did the agent take you to dinner or compensate you in some way in order to conduct business? Did they have one of their employees work on your application and/or quote or meet with you? How much did they have to pay that employee for their commission? All factors many people don't consider when they are calculating commission.

Jo Said:

I want to get a life/health insurance broker license?

We Answered:

I'm not sure about Maryland but in Tennessee you have to go to insurance school before you can test. I would check with the state of Maryland and make sure that your materials are up to date. Also find out if you have to go to school first. Good Luck!