supersupps
Guru
- 534
Assume an agent has above street for the bulk of companies for annuities.. For a 100k annuity , what is the agent comm?
Comm Rate?
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What type of annuity? Fixed, MYGA, Fixed Index and how long of a surrender?
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supersupps
Guru
- 534
was wondering what the comm would be for the typical 100k in a fixed indexed product with the big carriers
It will vary widely by carrier and surrender. You can see as little as 5-6 on a 7yr where 10+ you can see 8 and 9+ (depending on your contract).
If you give me a company and surrender period I can give you a much more accurate answer. PM me if you like.
- 227
Above street contracts can range from 25bps to 150bps or more. So let's assume street level comp and you can do the math for the above street stuff.
If you look at 10 yr. contracts across the largest carriers...I would say that 6% to 7.5% commissions are the norm.
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i REMEMBER THE GOOD OLD DAYS YOU'D GET 10% ALL DAY LONG (2 YEARS AGO)
My favorite is Pac Life 10 year taking the max trail option...1.25% up front, 1.00% trails.
I think anyone that takes all the commish up front is REALLY missing the boat in long term income. It's nice having a six-figure paycheck waiting for me next year, even if I decide to stay in bed all day.
I think anyone that takes all the commish up front is REALLY missing the boat in long term income. It's nice having a six-figure paycheck waiting for me next year, even if I decide to stay in bed all day.
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I would agree. What most people dont think about is the fact that the account value will be higher in future years. So those 1% trails will be based on a higher amount vs. at the beginning of the contract.
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I wish wholesalers had the option to take trails. I would switch to that all day long!
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I see it all the time. Reps take all the comm upfront and don't think about tomorrow and they have to rebuild their business every year. Also I've noticed that I tend to give better service to clients I'm getting paid on each year which helps with referrals. I think both the rep and client win when the trail option is chosen.
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