Monumental Commish Changes

[TDFnCali]

Just got some snail mail from Monu about their commish changes....I have no idea if this is the same for the states that have changed over to Transamerica FE products, but in Calif its still Monumental.

10yr Pay was the only real change I saw & its drastic....renewals are 0% on retail & .5% on wholesale. So basically NO renewals on 10pay business!

 

[WinoBlues]

Just got some snail mail from Monu about their commish changes....I have no idea if this is the same for the states that have changed over to Transamerica FE products, but in Calif its still Monumental.

10yr Pay was the only real change I saw & its drastic....renewals are 0% on retail & .5% on wholesale. So basically NO renewals on 10pay business!

We must be on different schedules. Mine is 108/1 on 10 pay. Basicly no renewal.

 

[GMDM100k]

We must be on different schedules. Mine is 108/1 on 10 pay. Basicly no renewal.

Is this a starting trend with FE companies!! I have heard of a few companies lowering commissions lately. I honestly have never had any commissions lowered ever. Only raised. How can they do this. I thought your commissions were guaranteed when you sign the contract. Maybe its different for companies that are mainly captive.

Also what would be the reason to lower commissions besides them needing to make more money? Are they struggling? Is it the actual CO or is it the IMO that is taking the commissions back.

 

[jdeasy]

Is this a starting trend with FE companies!! I have heard of a few companies lowering commissions lately. I honestly have never had any commissions lowered ever. Only raised. How can they do this. I thought your commissions were guaranteed when you sign the contract. Maybe its different for companies that are mainly captive.

Also what would be the reason to lower commissions besides them needing to make more money? Are they struggling? Is it the actual CO or is it the IMO that is taking the commissions back.

All companies can change the commission schedule up or down. I've had companies lower them and raise them.I had LH lower mine one time. Were they struggling?

 

[GMDM100k]

All companies can change the commission schedule up or down. I've had companies lower them and raise them.I had LH lower mine one time. Were they struggling?

I know with LH they lowered credit card commissions when they found out how low the persistency was. Now they don't advance at all for cc business. I have never seen LH lower commissions across the board. My back end renewals have never been changed. Not in the 10 years I have been in business.

I also know I can raise or lower my agents commissions as I see fit but that has nothing to do with the CO. That's why I asked if it was the IMO or the actual company.

 

[jacobtn]

the 10 pay sales are a tiny percentage of Monumental business, we never write it either really. but that is interesting.

 

[VolAgent]

Just a guess, but combined with the ending of 10 pay policies in their LTCi division as well I would surmise that they have found short pay policies don't lapse. They are probably trying to discourage it through agent comp.

 

[GoCubsGo]

We must be on different schedules. Mine is 108/1 on 10 pay. Basicly no renewal.

Yours is better. Mine is 103/1 with .5 renewals for 10 years which is 108 total on the 10 pay.

 

[WinoBlues]

Yours is better. Mine is 103/1 with .5 renewals for 10 years which is 108 total on the 10 pay.

I can not tell you where I got it {Rhymes with Kodd Ting} But my level pay is much higher. He owes me a beer in Vegas.
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Is this a starting trend with FE companies!! I have heard of a few companies lowering commissions lately. I honestly have never had any commissions lowered ever. Only raised. How can they do this. I thought your commissions were guaranteed when you sign the contract. Maybe its different for companies that are mainly captive.

Also what would be the reason to lower commissions besides them needing to make more money? Are they struggling? Is it the actual CO or is it the IMO that is taking the commissions back.

More money could easily be one. Offset underwriting losses or marketing cost another. Vol's explanation sounds very plausible. The 10 pay would be a form of adverse selection as that client base gets older and sicker.

 

[senior-advisor-indiana]

I can not tell you where I got it {Rhymes with Kodd Ting} But my level pay is much higher. He owes me a beer in Vegas.

Why are you bein so secretive? Just tell us were you got it!