I knew that it was bunk, but I need the money. After I posted a resume to Monster last week, outlining my advanced degree in a "hard" science, my experience in management of projects, people, and budget, I got a call from....an insurance company. Well, at least it was local, so worth a try.
I got up and showered, not quite trembling with anticipation. I dressed in my "good" suit (I clean up pretty well) and went over to the local United American Insurance Company office. A cursory search of the web earlier showed no financial red flags regarding them or their holding company, Torchmark, so I said to myself, "Give it a try." So I did.
Driving over there, I reflected on why the firm was not listed in the local telephone book, but rationalized it as, "They must be new to town, yeah, that's the ticket." I reconsidered why they would be interested in a Ph.D. Organic Chemist with decades of experience, but rationalized it as, "The market must be so good that they can not keep up with demand, so they need people." Yeah, that must be it.
Then I got there and was greeted by a twentysomeone who was the "District Manager." He waxed very positively about what a great service his company provides to those who are under insured for healthcare, and what a wonderful job they do with Medigap. Antennae, already aroused, began to scream to me, "This is bunk." Then he went through what was expected.
This is where it gets interesting. The norm for that company is to indenture folks. First, you are what they euphemistically refer to as a "1099" employee. Meaning that one is not an employee at all, but an independent contractor. No health or life insurance, unless you want to buy it from them, no income tax withheld, and the "1099" person has to pay both halves of FICA and Medicare. Well, being independent is great, that is what we have been taught since 1981.
But there is more! You have to furnish your own car (not a surprise) and there is no expense allowance. One must supply one's own mobile telephone as well. And, well, there is no base salary, since one is a "1099" contractor, but they will advance you multiples of your sales for the first year and a month. Then you owe them, and your "earnings" plunge from 400% of your sales to 5% residuals of them. But you are vested after 20 years for the 5%! But only if the folks that have bought the policies from you do not die or cancel.
If that happens, and you decide to leave your contract, of course you are liable to repay all of those advances. This is why I call this indentured. By the way, if you look up the origin of this word, it literally means "their teeth are in you". So I thanked the "Manager" very much and took his literature.
He encouraged me to go ahead and apply for the online training ($99) and the licensing application ($260) before end of work today. I guess that I will have to disappoint him, but I will not bite. I also found it interesting that he asked me if I had a credit card so that I could apply for the training and licensing application from the comfort of his office. "No", I lied, "I never carry my credit cards unless I have reason to think that I will need them that trip." A good friend once told me that it should not cost you out of pocket to go to work for someone, that that is good advice.
After returning home, I looked up complaints for that firm, and their reputation is not very good. I have filed this into the memory banks as a classic example of self-deception, but wanted to pass this on to the community because I know from reading many postings that there are others here who need income and would be tempted to flirt with the devil. I went to call on him, and said, "No."
I am sure that the "Manager" was not exaggerating too much when he told me about his six-figure income. He is in the system, and, like any other Ponzi scheme, it has to have a fresh flesh influx to maintain itself. Besides, when one includes the two digits on the right of the decimal point, six figures are not THAT hard to obtain.
This is just a cautionary story, no moral to be taken. The only thing that I obtained other than reaffirmation of my initial thoughts was a feeling of further worthlessness, but that will pass as I improve the situation of my finances. If I have to dig the dirt in Arkansas this summer, I will find an income stream. Warmest regards, Doc.