The Captive Insurance Agent

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The Pro's and Con's of  the captive life insurance agents   contract 

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The captive insurance agent concept!
How does it differ from the broker concept?

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Being a captive insurance agent simply means that you are going to work for a specific company under the supervision of an agency manager, such as company like State Farm Insurance.

As an captive insurance agent, you usually will only be able to sell their specific company products. However, in today's insurance marketing world, most captive companies have come to realize that they must provide a variety of products for their agents and have gone out and contracted with other insurance companies so as to make available to their agents a more diversified sales and marketing portfolio. 

A captive company will train you in a specific way and in many cases provide some type of insurance sales training allowance to help you make a transition into the business. As a general rule, a new agent coming into the life insurance business should probably start out with a captive insurance company vs starting out as a independent broker, simply because of the training you will receive. 

They may provide you with office space and will provide you with their marketing materials, possibly a laptop computer, as well as a more specific life insurance sales training program, school costs, and so on.

On the other hand a life insurance broker will have to buy most of this sales material from the different companies he/she may represent, and in many cases are provided limited marketing and sales concept training. 

Many of the captive companies provide almost all your marketing material and books, a health insurance package, a 401-k or some type of retirement program. Again the industry constantly changes. You need to examine what that company is going to provide you if you do go to work for them.

Even though there is no insurance agents salary per say, those companies that offer you a training allowance to help you get started, do have certain quotas you must meet, and if you are not validating those quotas by making sales, this training allowance will be short lived. 

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Our business is a results orientated business.

There is only one report card that counts, and it is at the end of the month. You are compensated for results. Your time and effort must be focused on prospecting and selling and it is critical that you get off to a fast start. You need to get effective first, and then get efficient later.

Someone once said to me, Ted, this is not a spectator sport, meaning you are not compensated for just visiting with people and going through the motions. You need results. If you are not validating enough sales, they won’t keep you around, just because you are a nice guy.

Learn and Earn

Entry level insurance agents can learn more about entry level insurance positions by clicking the insurance jobs link below. 

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