How to Retire Gradually Using the Hybrid Model
May 28, 2024

Thinking about retiring in the next 2-3 years? One option is the "hybrid model." It allows you to sell your book of business while continuing to sell new policies.

It's a great option for agents who really want to cut back on their workload.

Here's what you need to know about the hybrid model as a potential exit strategy out of the insurance industry.

How the Hybrid Model Works

 Here's how the hybrid model works:

  1. You sell your book of business to us, and we take over the servicing of your customers. You can choose to sell just a portion of your book of business if you like – it doesn't have to be the whole thing.
  2. You get re-appointed and become an LOA under us (typically), and you can start selling to new customers. Your commission stays the same, and the LOA model protects you (we'll cover that soon).
  3. When you want to be fully done, we can purchase the new business you wrote. Enjoy retirement!

Becoming an LOA

If you have any Medicare Advantage business, you have to be an LOA for this model to work. We'll cover this in more detail shortly.

Otherwise, you don't have to be an LOA, but it makes the whole process a lot smoother.

It definitely takes trust because we do handle the money. Rest assured we'd have an agreement in place, and we pay you the same commission amount you make now. 

This ensures that when you really want be done or something happens, you or your beneficiary gets the full value of your remaining book of business. We have control of the money so we have the ability to pay out your beneficiary if you die.

Related: 6 Practical Ways to Increase Value in Your Insurance Business

Best Candidates for the Hybrid Model

This hybrid model isn't the most popular choice because most agents are ready to be completely done. But for the right agent, it's really a slam dunk.

The best candidates for the hybrid model are:

  • Agents who want to sell their business but also want to stay in it.
  • Agents who service customers remotely. If you see your clients face-to-face, the hybrid model isn't the best for you because it’s a constant conflict with those customers. If your customers see you in your office every time they drive by, they'll want to keep doing business with you. They don’t understand that you sold those customers to us and you have new ones now.
  • Agents who have mostly Medicare Advantage business. If you pass away, the carriers get that business. Unless your wife or other loved one is appointed and certified (AHIP and with the carriers) each year, you will lose those renewals if something happens to you.
  • Agents or agencies who want to sell their renewals to us for capital to reinvest back into their business. 

    We can get you a valuation for that if you’re interested in it.

Benefits of the Hybrid Model for Medicare Advantage Business

If you die, who’s going to get your Medicare Advantage business? The carrier will.

Unless your wife or other loved one is appointed, you have that arrangement made, and they are certified, you'll lose those renewals.

The other problem in the MA world is individuals who want to retire don’t know what they’ll do with their current book of business. They have to continue to get AHIP and carrier certified to get renewals. Who wants to do that when they're retired?

Once you quit or die, the carrier just rakes that business back in internally. The hybrid model puts a system in place to ensure that doesn't happen.

Related: How to Know When It's Time to Sell Your Insurance Business

A Success Story

We just closed on a book of business using the hybrid model. This experienced agent is in his early 80s and has a thriving business, all serviced remotely. He's developed a unique digital lead generation system and continues to grow that block of business.

He just sold his book of 400 customers to us, but he can continue to write new business.

This arrangement allows him to focus on what he loves without the administrative burden of servicing his existing clients. It's a nice way to stay in the business while cutting back quite a bit on his workload.

Financial and Tax Benefits

The hybrid model, like our other options, offers favorable financial arrangements, including capital gains tax treatment on the sale.

We provide flexibility in payment, spreading it over three years if you want, which can help lower your tax burden. We see a lot of agents asking the payment to be spread out a bit to help them avoid huge Part B premiums.


In conclusion, the hybrid model is a flexible and advantageous strategy for senior market insurance agents considering retirement.

Whether you want to reduce your workload, ensure your beneficiaries are taken care of, or reinvest in your business, this model provides a structured and secure way to transition.

Schedule your succession planning discovery call

Related: 12 Exit Planning FAQs: Money, Options, Timing, & More

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