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A lot of agents contact me wanting help knowing what to look for with final expense companies. It's a mix of underwriting, commissions, AM Best ratings, ease of doing business etc.
But one thing that's important to look for is companies that pay the agent for the policy fee. We write a lot of small policies and additions. The smaller the policy, the more important it is to get paid on the policy fee.
Getting paid on the policy fee is equivalent to a 5 to 10% increase on your commission level on the size deals that most final expnse agents usually write.
$30 monthly premium ($354 annually) $30 policy fee.
Company A 110% first year with policy fee paid full commission earned is $389.40. If you are on 9-month advancing that would get you an initial check of $292.05
Company B 120% first year but does not pay on policy fee. Same deal would get you a first year commission of $388.80 and 9-month advancing gets you an initial check of $291.60
$50 monthly premium ($588 annually) $30 policy fee
Company A 110% first year with policy fee paid full commission earned is $646.80. If you are on 9-month advancing that would get you an initial check of $485.10
Company B 115% first year but does not pay on policy fee. Same deal would get you a first year commission of $641.70 and 9-month advancing gets you an initial check of $481.23
$80 monthly premium ($941.21 annually) $30 policy fee
Company A 110% first year with policy fee paid full commission earned is $1,035. If you are on 9-month advancing that would get you an initial check of $776
Company B 115% first year but does not pay on policy fee. Same deal would get you a first year commission of $1,047 and 9-month advancing gets you an initial check of $785
But one thing that's important to look for is companies that pay the agent for the policy fee. We write a lot of small policies and additions. The smaller the policy, the more important it is to get paid on the policy fee.
Getting paid on the policy fee is equivalent to a 5 to 10% increase on your commission level on the size deals that most final expnse agents usually write.
$30 monthly premium ($354 annually) $30 policy fee.
Company A 110% first year with policy fee paid full commission earned is $389.40. If you are on 9-month advancing that would get you an initial check of $292.05
Company B 120% first year but does not pay on policy fee. Same deal would get you a first year commission of $388.80 and 9-month advancing gets you an initial check of $291.60
$50 monthly premium ($588 annually) $30 policy fee
Company A 110% first year with policy fee paid full commission earned is $646.80. If you are on 9-month advancing that would get you an initial check of $485.10
Company B 115% first year but does not pay on policy fee. Same deal would get you a first year commission of $641.70 and 9-month advancing gets you an initial check of $481.23
$80 monthly premium ($941.21 annually) $30 policy fee
Company A 110% first year with policy fee paid full commission earned is $1,035. If you are on 9-month advancing that would get you an initial check of $776
Company B 115% first year but does not pay on policy fee. Same deal would get you a first year commission of $1,047 and 9-month advancing gets you an initial check of $785
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