Aetna Med Supp- Commission for Life

[BuckNasty]

So Aetna will now pay two comp options:

1. Normal commission. . .21% first 6 years
2. 21% upfront, 11% for life.

What do you guys think? Maybe good to take the lifetime option for someone with bad health, turning 65 who will never be able to switch?

 

[sman]

So Aetna will now pay two comp options:

1. Normal commission. . .21% first 6 years
2. 21% upfront, 11% for life.

What do you guys think? Maybe good to take the lifetime option for someone with bad health, turning 65 who will never be able to switch?

What's the commission after 6 years on the normal plan (the reason I ask is because my Aetna commission is 23% years 1-6 and 6% thereafter). So let's assume for a second my other option would be 23% upfront and 13% for life. Using a $1,500 annual commissionable premium, under normal commissions I would make $2,430 over a 10 year period. With the other option I'd make $2,100 over the same 10 years. It would take 14 years to be ahead of the game, but that doesn't include the time value of money. So let's call it 15 years. If they are in bad health, what are the odds of them making it to 80? Or staying on a plan that long?

Personally, I'll stick with the way it is currently.

 

[goillini52]

So Aetna will now pay two comp options:

1. Normal commission. . .21% first 6 years
2. 21% upfront, 11% for life.

What do you guys think? Maybe good to take the lifetime option for someone with bad health, turning 65 who will never be able to switch?

You can't pick and choose case by case...it's one option or the other. If you choose the lifetime option, you have to stay on it for 12 month before you can change back.

Most Med Supps aren't going to be on the books with one company long enough to worry about the lifetime option. The agent takes it in the shorts. I passed on this last week.

 

[senior-advisor-indiana]

You can't pick and choose case by case...it's one option or the other. If you choose the lifetime option, you have to stay on it for 12 month before you can change back.

Most Med Supps aren't going to be on the books with one company long enough to worry about the lifetime option. The agent takes it in the shorts. I passed on this last week.

I'm glad Equitable didn't give us an option in Indiana. They gave us a whopping 13% percent for life...

 

[goillini52]

I'm glad Equitable didn't give us an option in Indiana. They gave us a whopping 13% percent for life...

I don't know why they do that in Indiana. I could understand if the other carriers did it too. They're 1-2% lower than most here, but in the ballgame. I can live with that, especially when they're a niche carrier.

 

[Midlevel]

Pay me 30% for 4 years and nothing after that. I don't keep most clients on a Med Sup much longer than that anyway.

 

[openmindedone]

So Aetna will now pay two comp options:

1. Normal commission. . .21% first 6 years
2. 21% upfront, 11% for life.

What do you guys think? Maybe good to take the lifetime option for someone with bad health, turning 65 who will never be able to switch?

If the lifetime renewals option was 11% of current premiums, I would take it.

Since both commission structures are only basing it on the premium at issue, I'll just stick with it the way it is.

 

[GoPokes]

Old Surety told me they are gonna pay me 17.5% for life. They are a bit old school though, so getting biz issued is not normal

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So Aetna will now pay two comp options: 1. Normal commission. . .21% first 6 years 2. 21% upfront, 11% for life. What do you guys think? Maybe good to take the lifetime option for someone with bad health, turning 65 who will never be able to switch?

But what if those sick ones don't live as long?