FE Policy Fees

Newby

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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
 
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This is the type of valuable information that we all need. Thank you Mr. Newby!
 
I agree. Thank you. Can any of you FE pros post which FE companies pay on policy fees?:)

This thread would actually be a good place to gather that information.

These I know for sure:

Settlers pays commission on the policy fee

Monumental pays commission on the policy fee

Baltimore Life does NOT pay on the fee

American Amicable does pay on the fee

Assurity does pay on the fee

ForeThought does NOT pay on their $39 fee

GTL pays on their fee

Motorists does NOT pay on the policy fee

Oxford does NOT pay commission on the policy fee $30

Presidential does NOT pay on the $35 fee
 
Here is a nugget from the past. Any updates to these companies?
 
Foresters Cert fee on their Planright is $36 not 30

I stand corrected, didn't have my glasses on -
$36 is Foresters policy fee (which is fully commissionable).

They also now allow voice signature for a 100% phone sale in many states and you know, before the personal health interview is over that the policy is issued. It just doesn't get better than that.



.
 
I stand corrected, didn't have my glasses on -
$36 is Foresters policy fee (which is fully commissionable).

They also now allow voice signature for a 100% phone sale in many states and you know, before the personal health interview is over that the policy is issued. It just doesn't get better than that.



.

I REALLY like companies that do phone interviews and let you know that the policy is approved, declined or rated AT the time of sale. Apparently Forresters is becomming a strong player in FE.
 
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


Great examples!
 
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