Assurant Commissions - 2011

[jbage007]

I'll just get right to it - it's not as bad as others (hey Humana - I'm talking to YOU).

Here we go:

There are 4 tiers. All based on annual production.

Major medical pays:

Tier 1: 12/4 (<100k)
Tier 2: 14/4 (100k+)
Tier 3: 14/4 (750k to 1.5 mil)
Tier 4: 14/4 (1.5 mil+)

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Suite Solutions pays

Tier 1: 35/13 (under 100k)
Tier 2: 40/15 (100k to 750k)
Tier 3: 45/17 (750k to 1.5mil)
Tier 4: 50/20 (1.5mil+)
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Health Access pays

Tier 1: 20/6
Tier 2: 25/7
Tier 3: 30/9
Tier 4: 33/12

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Dental pays

Tier 1: 20/6
Tier 2: 25/7
Tier 3: 30/9
Tier 4: 33/12
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In a nutshell, once you get into Tier 2, it ain't all that bad, especially with the add-ons considered. At Tier 2 production, with one major medical and one suite solutions thrown in, net first year commission is approximately 18% of total first year premium (you listenin' Humana??)
(love those idiots from Humana)

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There is NO difference in major med commissions once you hit Tier 2 - even if you write $5 million, it's still 14% first year and 4% renewals (base premium).

The other tiers provide additional compensation on products NOT SUBJECT TO REFORM.

All in all, this appears to be the best commission schedule I've seen yet. And it's especially good if you happen to have a market for their Health Access line (at Tier 3, it averages 33% of first year premiums).

 

[somarco]

Sounds good. Can't say if they still write business in Georgia. Haven't seen them in years.

 

[Crabcake Johnny]

14% for 100K? And I have it on good word that the full year advance returns come Jan. Looks like agents will be looking for the 8 zip code markets where Assurant's competitive.

 

[jbage007]

Yep, advances return!

Actually, they are very competitive in lots of places. I am not at liberty to disclose those zip codes, however.

 

[YouGotMyMoney]

I guess I'd sell Health Access if it wasn't for the chargeback liability.

Does STM fall under MM?

 

[jbage007]

The commission schedule I am looking at does not address STM. I think that is actually a different department or something. But historically, their STM has been so-so, meaning that it started really low and you had to produce a specific amount of STM to get a bump to 20ish (or higher).

Good question, though.

Although ultimately, I think it was a mistake on their part to offer only 6 month plans henceforth.

 

[Yagents]

I heard State Farm is giving their agents 5% / 1% for Assurant offerings.

Each company, will each have something you like, that builds a nice diversified commission income. I like Assurant's advance and 12%, but I like Humana's renewal schedule better, I like UHC's bonus structure, but love BCBS's consistent structure. Aetna blows.

I thought most would shun limited benefit plans like Health Access on this forum. I refuse to sell one.

 

[YouGotMyMoney]

I thought most would shun limited benefit plans like Health Access on this forum. I refuse to sell one.

Everyone here has an opinion about those, and are all valid.

 

[jbage007]

9 times out of 10, that Health Access plan will do a better job for folks on ORDINARY CLAIMS than your high deductible plans with double the premiums. Since MOST claims are ORDINARY, most folks actually would be better off with the Health Access type plans.

I know, I know - sounds kinda fishy. But the numbers don't lie.

When major medical was $2500 a year with $1,000 deductible, it would have been ridiculous to consider Health Access. But do the math with today's (and tomorrow's !!) premiums.

How much sense does it make to pay $20,000 a year in premiums and still have a $10,000 deductible?

The only people benefiting from those plans are people who incur significant claims, year in, year out, i.e., claims over $30,000 per year (break even point). If they have substantial assets beyond that amount that need protecting, it makes sense. Otherwise, alternatives can, and should be, considered.

This includes the Health Access plan which of course has zero deductible and features premium points around 40 to 60 percent lower than typical major medical plans. When folks have a typical 2 or 3 day hospital stay, they are much better off with these plans. Remember to factor in premiums paid as part of your out of pocket annual expense.

As for me, I'm thinking about going full time, 100% Health Access, at least for the next 3 years. It's making more and more sense.

 

[Crabcake Johnny]

Unconfirmed - MGA's override is only 2%.