In this video, I talk about some myths about being a staff adjuster vs an IA:
Myth #1: Being a staff adjuster is a more secure job than being an IA
Reality: While the income may be very reliable - you know exactly how much you’ll be paid every month - and the benefits are pretty nice, major insurance companies are constantly doing reorganizations and changing things up. Somebody in a cube on the 17th floor of an office building 2500 miles away can decide that it would save the company some money if your job disappeared - not you, of course. But you might have the choice of moving to a new city on short notice to take another job in the company - or accepting a severance and see ya.
Myth #2: Being a staff adjuster/employee is better because of the benefits
Reality: The truth is, the amount of money you are paid as an employee is not the same as the amount of money the company sets aside for your position.
And they’re looking for ways to save money while still offering you health insurance and a 401k. And you still have to pay at least part of the health insurance out of your own pocket.
Every situation is different, but the amount of money that was taken out of my check to pay “my part” of my health insurance benefit was MORE than what Im paying now for Dean and I. As an IA I’m able to shop around and find better options.
And as far as your 401k, the matching is nice, but I can assure you that you’ll be able to build a better portfolio on your own. And you actually have to take advantage of it as well - a surprisingly large percentage of employees don’t take advantage of the 401k’s offered at their companies. Also, because you’re not getting a benefits package as an IA, you can shop around and find better deals on your own. Also, you can pick out your own vehicle and take the mileage deduction (which as a staff adjuster you can’t take those miles, the company does). You can pick your hotel and save money there. And so on.
So in essence, as an IA, you can build your own benefits package and save yourself some money, while also finding better products.
Myth #3: Being a staff adjuster pays less than being an IA
Reality: The truth is, you can make a very large amount of money in a short period of time as an IA - But if a person gets a job at a big insurance company right out of college, and stays there until they retire - they’ll probably do about the same over the long run as another person who starts out as an IA.
The IA may be able to earn more in the beginning, but the staff person will have many more opportunities to advance in the company and can find themselves in a middle or upper management role that pays more than what the average IA is getting.