Commissions on ART/YRT

[AboutThatLife]

Does the term end at the end of the year and the person has to buy more? Or does the company automatically renew them for another year?

Do they get an estimate of what the future years will cost?

*It's called "commissions on ART/YRT" because if the first case is true, you'd make more commission selling it over and over again and alot of people would find it more affordable for short term concerns, but from a carrier standpoint, that seems unprofitable.

 

[DHK]

ART/YRT is guaranteed renewable to age 100 or otherwise specified by the company. I haven't seen one that paid any renewals, so you only get a commission on the initial (low) 1st year premium.

The idea is to implement a low cost solution and convert it in the early years to a longer period term or a permanent product. The cost of the policy increases every year and you can show that increasing cost using the company's illustration software.