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A Hot Job for Hard Times: The Life-Insurance Agent
Team 9Nicholas Saunders, Michelle Nguyen, Garrick Robertson
Life Insurance Agents
Thousands are being added
Big companies planning to sign up more
Similar types of agents are switching (real-estate agents, mortgage brokers, bankers, lawyers)
Getting Started as an Agent
First years very difficult
Low Pay, almost all of it from commisions
Usually pay cut from former job
Lots of education
Many people after hired quit due to strain of job
All in All, it SUCKS!
Background Information
1950’s- Life insurance agents common
Door to door selling
1980’s- families using proliferation of mutual funds and lower premiums
Less commission for agents
Continued Background
1990’s- whole life still hard to sell
Gets even harder to sell due to a scandal hitting the industry
Scandal
Term life- protects set time interval
Whole life- protects until death
Insurers pay interest on whole life, buyers can get back $$$
Expensive upgrades cheat buyers
Upgrades don’t cover cost of upgrades
Also
Lawsuits followed costing millions
Companies start requiring extra licensing from agents.
Forced agents to leave with policy
In Short
Scandal caused families to avoid whole life insurance
Life insurance agents get less commission
Companies employ less agents
Recovery of Whole Life
Didn’t have to worry about the Internet revolution that got rid of many agents for term life due to complexity
12% growth in whole life in 2009
Term life’s pitch “ Buy term and invest the difference.” became “lose the difference” when the stock market crashed helping whole life as well
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