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NAAIP Newsletter: May 11, 2022: I Have Not Been Honest. Real Reason Why NAAIP Not Offering Contracting


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Hello , (Next video conference call in 45 minutes!)

The Following Bullet Points Explain the Current Situation:

NAAIP holds a 6 day per week video conference, and we tell the sad truth about the likely outcome of being a new insurance agent.

Common knowledge is that 92% of new agents will fail. These new agents will not renew their license in year four. 

Included in these 8% that succeed are agents from NYLife, Mass Mutual, Northwest Mutual and financial advisors who are much more likely to succeed. The fail rate of agents that get recruited into entities that stress Final Expense, Mortgage Protection and "Building a team" has to be close to 97%.

The recruiters know these numbers, and they endeavor to profit by selling leads to the new agent. Recycled leads that are the equivalent of "data."

I hear these stories daily, and it breaks my heart. Agents being wiped out financially by getting an insurance license.

There are dozens of entities that recruit in this 97% fail market. 

My advice would be to stop and think. Specifically, get a written guarantee of lead exclusivity from an entity that recruits agents into this 97% fail market. Be prepared to take legal action to protect your rights. Probably best to not buy leads from lead sellers who have a large database of gullible buyers. 

Think about the concept of final expense whole life insurance. If you were a 65-year-old broke person without a burial plan, you have a few options.

If I were 65 years-old and broke, I would walk into the local funeral home and ask them for help. The licensed agent at the funeral home would present me a pre-need burial life insurance policy which has the feature that the premiums actually end, etc. In essence, don't sell in this market until you have put yourself in your prospect's shoes and have done the proper research. 

Similar with mortgage life, which is term life for new homeowners. Mom, Dad and kids. Perfect for life insurance sales. Best rate for 35 year male non-smoker 1/2 million dollars of coverage for a 20-year term is $238.25 /year. How on G-d's green earth can the agent afford to buy the lead and do a home visit to sell this policy? There is not enough profit to actually do the best policy for the client. On the other hand, if you overcharge the new client with an uncompetitive carrier, you will be more likely to get a cancellation and forgo the opportunity to sell a bigger "retirement planning" type of policy in the future. 

I invite new agents to analyze this mortgage protection market, and you may realize that the only way you can stay in business is to develop relationships that allow you to sell "retirement planning" type of policies eventually. 

Build a team. The immediate upline is the guarantor of downline bad debt. Recruiting an agent that has a 97% fail rate and guaranteeing their debt does not seem smart. All the while, the MLM levels above you are encouraging you to "build a team." An added bonus to the MLM of you recruiting agents is that it allows them to sell recycled leads to more new agents. Gee, that help you lots. 

Dozens of recruiters are in the new agent market. To cut to the chase, These recruiters don't like NAAIP.

Personnel at NAAIP have been threatened with defamation lawsuits.

Months ago, after being lawsuit threatened and having no desire to engage in any legal battles, NAAIP immediately ceased making references to specific carriers and recruiters. 

As well, our licensed agent partners were lawsuit threatened and had no desire to accept referrals from NAAIP.  

Imagine the legal fees that Amber Heard and Johnny Depp are paying. OMG. 

On the other hand, there is a desire to protect innocent people.

Thankfully, there are 50 states and each state has dedicated personnel whose job is to investigate fraud. Obviously, lead selling fraud can potentially lead to churning and elder abuse. That is something that the 50 state departments of insurance would have to investigate and prosecute. NAAIP is not the government. 

Certain states will only accept complaints from affected state residents. Be aware that NAAIP wants to protect the public from being defrauded and has evidence that will certainly help a state in its duties. To put it bluntly,  If you have been a victim of lead fraud, talk to me.

 

Congratulations to Mario Herfy who did an impressive job setting up a video at the top of his website and, as you scroll down, you see Mario's Team www.herfyfinancialgroup.com.

I made a link from NAAIP's home page to show Mario's site as an example website. This will help Mario's SEO. Talk to me if your website is impressive, so I can link it from NAAIP's home page.

 

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