2 Massive Cases

[WinoBlues]

Got ya. So go with as earned? And just keep my steady cash flow? Winoblues? Dont try to get a big advance.

Don't make the advance part of the solution you are proposing. This is not FE. Don't go by your main company, your IMOs main companies or the highest comp. Do what is right.

Advance is secondary or further down the line. Ink the deal. Get paid and hold your breath for 12 months.

Nice cases. However, don't let them derail you. There are many skinny Whale hunters.

 

[The Benefit Coach]

I'm with STIBROKER on this one. Why aren't you recommending the client pay annually? That's fairly common for big cases as there's usually a healthy discount on the premiums. In fact, you would be remiss for not pointing this out to the client. On smaller cases, that discount isn't all that significant, but on large cases it adds up quickly. What's in it for you is you get your full first year commission immediately, not just a percentage of that as an advance, plus there's a much lower chance that policy will lapse since it's already been paid for.

 

[WinoBlues]

I'm with STIBROKER on this one. Why aren't you recommending the client pay annually? That's fairly common for big cases as there's usually a healthy discount on the premiums. In fact, you would be remiss for not pointing this out to the client. On smaller cases, that discount isn't all that significant, but on large cases it adds up quickly. What's in it for you is you get your full first year commission immediately, not just a percentage of that as an advance, plus there's a much lower chance that policy will lapse since it's already been paid for.

I agree on the majority of this.

However, Some companies still cap and will pay it out as earned. I could not tell you which ones off the top of my head though. Best to check with the company. The last annual case I did recently was TA and they payed out the whole $5,000+. However, I had called them just after issue and the rep told me it would be capped and went on to try to explain some off the wall formula. So even calling does not guarantee you will get the correct answer.

 

[BADTROUT]

Personally for me although advances can be a nice timely infusion of cash... you best hope your insured keeps paying... I like the "as paid" keep that flow going approach. That said, there is nothing wrong with getting as paid... as the insured pays annually where there is usually a nominal (in this case this large it would be pretty substantial) modal premium savings for them as well.

 

[DHK]

It's not a discount for paying annually.

It's a finance charge for paying monthly.

 

[BADTROUT]

It's not a discount for paying annually.

It's a finance charge for paying monthly.

Understood and agree on the discount, It was always called "modal premium savings" when I was brought into the industry (because it is less expensive, therefore a savings... and specifically we were told not to use the word discount)... You absolutely are correct on the surcharge versus discount for sure.

 

[pfg1]

Agree, as earned is the way to go.

How are you designing the policies?

 

[scagnt83]

Agree, as earned is the way to go.

How are you designing the policies?

Ditto.

I never ever get advanced commissions. Especially on a large case.

Better question is how this FE IMO is designing these policies for you. Your liability as an agent skyrockets with cases like this compared to FE.

 

[Allen Trent]

Ditto.

I never ever get advanced commissions. Especially on a large case.

Better question is how this FE IMO is designing these policies for you. Your liability as an agent skyrockets with cases like this compared to FE.

seems the main point shared about the case is that quick commissions was the focal point of the design. not sure you are going to hear back in terms of design/overfunding, etc & he already clearly said in his 1st response "don't question me"

 

[rousemark]

Anytime you are making decisions based primarily on commission flow or rate, you probably are not going to make best decision for your client.. Do the best job you can for the client and the commission will take care of itself.. JMHO