Commission on Specific Scenarios:

[njinsuranceguy]

In NJ group health pays 4-5% of the premium depending on the carrier. It usually averages between $400-500 per member per year. So if you write a 5 life group you would make about $2,000-2500 a year on that. Its paid monthly as the client pays their bill. So somewhere around 200 a month in commissions.

There isnt a whole lot of money in the small groups but if you write a company with 40 employees then you're making 16-20k. If you write 5 accounts a year you're making 80-100k. Renew them and keep adding new clients and in a couple years you're making a couple hundred grand. I think thats a pretty good living!

 

[Spock]

Just as a FYI to US Brokers:

The commission % is higher in Canada because the premiums are not that high since most of the health care coverage is covered by Government and the employer benefits only cover above the Government coverage.

I was wondering why there was a huge % difference in the commission and then it hit me that there is a massive difference in the premium per person / family between Canada and USA.

 

[MichaelQ]

The commission all depends on what % the carrier pays and what percentage you have worked out with the agent.