Commission Levels for Term Insurance?

Jun 16, 2016

  1. SomeDude99
    Offline

    SomeDude99 Expert

    Posts:
    58
    Likes Received:
    0
    State:
    Connecticut
    Hi,

    What is a fair commission level for term insurance with no production requirements? I'm currently at 85% commission on term policies with Centrian Life Insurance. I'm an independent agent. Is this a fair commission level? I have a 120% contract for FE with United Home Life. Just wondering?
     
  2. pfg1
    Offline

    pfg1 Guru

    Posts:
    1,462
    Likes Received:
    265
    State:
    Virginia
    Regular term companies vary as to what the street level is. It can also vary by product and face amt.
    I have contracts that are less than 85%, and some that are more. Most you have to do a good bit of premium to get up around 100% on term. I'd say 85% is not too bad...I don't know that company at all, so I can't comment. Trad life is a little different than FE when it comes to comp.
     
    pfg1, Jun 16, 2016
    #2
  3. JRoot
    Offline

    JRoot Guru

    Posts:
    739
    Likes Received:
    145
    State:
    Texas
    90% is "Max Street" with Centrian (which is SBLI in CT) at 20/30 year terms. So yes, this looks fair to me.
     
    JRoot, Jun 16, 2016
    #3
  4. DHK
    Offline

    DHK "YOU CAN'T HANDLE THE TRUTH!"

    Posts:
    8,259
    Likes Received:
    2,031
    State:
    California
    The highest term comp I've seen is with Assurity Life. Nonmed for 125% and medical required for 115%.

    The lowest I've seen is 45% for term or term riders on WL with MassMutual as a career agent.
     
    DHK, Jun 16, 2016
    #4
  5. medsuptage
    Offline

    medsuptage Guru

    Posts:
    572
    Likes Received:
    7
    State:
    Washington
    I am not familiar with that insurance company you're referring too, isn't that a subsidy of SBLI? Anyway, 85% is very below industry standard. I can think of a few small quirky companies that pay way below industry standard, but the big names are going to pay a lot more than that.

    Pay general scales off term, 10 years pays the least, 15 pays more, 20/30 pays the most.

    If you're doing all your own marketing, and you're not getting any application support from your upline, you can fairly easily get 115-120% on 20/30 year term with most big companies. A little less for 10/15 year.

    so, 120-85=35% being left on the table. So if you're upline isn't providing solid levels of support and marketing for that, you may want to go elsewhere.

    Also, if you're indy and wanting to do FE, expand on your FE companies. UHL really doesn't like getting business they don't make it easy for you to write them.
     
  6. TFMSINC
    Offline

    TFMSINC Expert

    Posts:
    59
    Likes Received:
    0
    State:
    Oklahoma
    In my opinion, 85% is not below industry standards. Of course it depends on how much premium you bring in. I like "paid as earned".:1cool:
     
    TFMSINC, Jun 17, 2016
    #6
  7. pfg1
    Offline

    pfg1 Guru

    Posts:
    1,462
    Likes Received:
    265
    State:
    Virginia
    I agree. Several of the "big companies" don't even go to 115% on term, even if you did a ton of annual premium.
    It might be low if you are comparing trad term payouts to FE contracts.
     
    pfg1, Jun 17, 2016
    #7
  8. MichaelBurton
    Offline

    MichaelBurton Super Genius

    Posts:
    180
    Likes Received:
    0
    State:
    Texas
  9. SomeDude99
    Offline

    SomeDude99 Expert

    Posts:
    58
    Likes Received:
    0
    State:
    Connecticut
    In CT I cant contract with Banner directly I have to go thru a brokerage. The one I am with now (who are out of NH) offers me the 85% contract with no production requirements. So I guess I should contact every brokerage in the area to see if they can beat what I have. I tend to write a good amount of term insurance so I don't want to be loosing money.

    Also, i would assume there is no rule you have to be contracted with a brokerage agency who is located in your home state as I am contracted with one in NH. ?
     
  10. thomasm
    Offline

    thomasm Guru

    Posts:
    1,167
    Likes Received:
    48
    State:
    Nebraska
    thomasm, Jun 28, 2016
    #10
Loading...
Similar Threads
  1. SomeDude99
    Replies:
    12
    Views:
    2,443
  2. lcodilla
    Replies:
    9
    Views:
    428
  3. wfs
    Replies:
    2
    Views:
    320
  4. StarterAgentKG
    Replies:
    16
    Views:
    1,194
  5. billyb
    Replies:
    3
    Views:
    570