Bankers Life

[axeman462]

A big problem with their agents is they are paid such low commission. They get 45% on Level FE, and 35% on graded. That coupled with 90% of them roll in pairs splitting commissions, keeps them very hungry, starving actually. Most will say anything to get the sale.

Bankers agents get screwed on life products and annuities, but they bank on their medsupps. Average about $600 commish for a plan F...

 

[Norwayguy]

Bankers agents get screwed on life products and annuities, but they bank on their medsupps. Average about $600 commish for a plan F...

If they can sell it....And part of that amount if true is not the commission Percentage as much the higher premium.

 

[axeman462]

If they can sell it....And part of that amount if true is not the commission Percentage as much the higher premium.

I used to get 24% commission on a medsupp. I worked out of the Sarasota office.
Most could not sell it and make the business stick. But there were some that would sell 1-2 day and were making $90k/yr in renewals alone (and they are lifetime renewals)

But yes, the high commish is because of high premiums. If they lowered the agent commission to what most companies pay, their rates would actually be Somewhat competitive.

 

[Norwayguy]

I used to get 24% commission on a medsupp. I worked out of the Sarasota office.
Most could not sell it and make the business stick. But there were some that would sell 1-2 day and were making $90k/yr in renewals alone (and they are lifetime renewals)

But yes, the high commish is because of high premiums. If they lowered the agent commission to what most companies pay, their rates would actually be Somewhat competitive.

Yeah I was a bankers agent back in '99 and seem to remember that commission rate but it was very contingent on they being 65 the commission rate dropped a bunch right after that.

 

[axeman462]

[QU.OTE=Norwayguy;741308]Yeah I was a bankers agent back in '99 and seem to remember that commission rate but it was very contingent on they being 65 the commission rate dropped a bunch right after that.[/QUOTE]

sounds about right. I think that's why they always had us push T65

 

[rousemark]

I used to get 24% commission on a medsupp. I worked out of the Sarasota office.
Most could not sell it and make the business stick. But there were some that would sell 1-2 day and were making $90k/yr in renewals alone (and they are lifetime renewals)

But yes, the high commish is because of high premiums. If they lowered the agent commission to what most companies pay, their rates would actually be Somewhat competitive.

Oh, for the good old days. When I started selling medicare Supplements the commission was 60%-70% first year and 15%-20% lifetime renewals.

 

[xrac]

Oh, for the good old days. When I started selling medicare Supplements the commission was 60%-70% first year and 15%-20% lifetime renewals.

WOW!!!! How long did that last?

 

[nfl72]

I worked one of my TM leads last week and when I called the guy he stated it was too late as he had already purchased a policy. I persisted and he agreed to let me look at if for him. The policy was dropped off on WED and I met with him on Thursday. He had $2,500 at $49 per month with Bankers. I got him $4,000 at $50 per month.

 

[rousemark]

WOW!!!! How long did that last?

For several years.. 10 at least.. then the government got involved with commissions.. Part of the blame falls on the agents that were constantly rolling business to get new 1st year and since the plans had not preex pick up or waiver in those days, the client was always in the contestable period.

I think the first change was the 1st year could be no more than double the renewal and comsissions went to 50% 1st and 25% renewal for 5 years and then dropped to 5%. Then they changed again and it went to something similar to what we have now.. 25% for 6 years and then 5%

 

[xrac]

Oh, for the good old days. When I started selling medicare Supplements the commission was 60%-70% first year and 15%-20% lifetime renewals.

That was pure gravy.