Medicare Supplement Commissions?

[insurance1822]

How do these pay up front & renewal?

What's the service like?

 

[Chazm]

They pay anywhere from around $200 to $400 I think. Same for renewals.

Not much service at all. Just checking once a year to make sure they don't have a big increase

 

[Newby]

How do these pay up front & renewal?

What's the service like?

It varies by state. In most states you are looking at 21-22% on most of them. Pays the same on renewals for six years.

Very little service work on supplements.

 

[Bevo]

How do these pay up front & renewal?

What's the service like?

Service is low but keep up on the book and shop rates if you can, if they go shopping online when they get their rate increase and drop their name and number in look out.

You can set it up for a 12 month advance for most carriers, but it'll be as-earned starting month 13.

You can of course go as-earned out of the gate, but if done right charge backs are so minimal that risk is low on the "debt". Better to have the working capital and money up front IMO for that very reason.

 

[OZ973]

It varies by state. In most states you are looking at 21-22% on most of them. Pays the same on renewals for six years.

Very little service work on supplements.

I'm new to this business so excuse me of the questions is dumb. When you say that it pays 21-22%, of what amount exactly? Is that 21%-22% percent of policy yearly cost?

Also, where do you go to see what each company pays?

 

[JimmyUt]

I'm new to this business so excuse me of the questions is dumb. When you say that it pays 21-22%, of what amount exactly? Is that 21%-22% percent of policy yearly cost?

Also, where do you go to see what each company pays?

21 to 22% of the annual premium is the commission. The only place to see what each company pays is to find a few medicare uplines and compare contract levels. There is not one place for that info.

 

[FRJ]

You can of course go as-earned out of the gate, but if done right charge backs are so minimal that risk is low on the "debt". Better to have the working capital and money up front IMO for that very reason.

Don't forget that many carriers will charge you about 1% per month on the money they advance to you.

 

[Bevo]

Don't forget that many carriers will charge you about 1% per month on the money they advance to you.

MOO, Aetna, Cigna, New Era...1%?

 

[kgmom219]

I'm new to this business so excuse me of the questions is dumb. When you say that it pays 21-22%, of what amount exactly? Is that 21%-22% percent of policy yearly cost?

Also, where do you go to see what each company pays?

Instead of trying to figure out the percentage, just use the dollars. Not sure of your state, but a good "guess" is that you are going to make $275 per policy/per year. Some will be higher, some will be lower. But for budgeting purposes, assume $275. And this is a lowball number. At the end of year 1, you can figure it out.

Also, you don't get 100% upfront. (I think. Its been a while. Bevo?) Its more like 75%

 

[Bevo]

Instead of trying to figure out the percentage, just use the dollars. Not sure of your state, but a good "guess" is that you are going to make $275 per policy/per year. Some will be higher, some will be lower. But for budgeting purposes, assume $275. And this is a lowball number. At the end of year 1, you can figure it out.

Also, you don't get 100% upfront. (I think. Its been a while. Bevo?) Its more like 75%

I get 100% up front from the companies I mentioned. UHC gives 9 mo. as does Medico and a few others.

Maybe it's based on credit, upline...not sure. But if you can get 12 mo. up front without giving points, IMO due to charge backs being almost non-existent money today to build your business is better than money spread out over 12 months.

I still take advances even though I don't need to. I'll invest that money and make the interest starting today all day long.

But that's just me.