New Agent Question on Whole Life Commission

[insurancedoc]

I am a new life agent. My only previous background in selling insurance was with selling several Final Expense policies.

I just have a question about Cash value whole life plans. My question is when the " Schedule of Compensation" for new agents for Whole Life Plans states say " 80 or 75 First Year Policy Commission", does the agent get the 80% or 75% 1st year commission monthly ? ( say the policy holder has $ 200 monthly premiums) So at $200 monthly, the agent would receive a check for $160 commission monthly for the first year???

Or is it a lump sum commission for the 1st year total premium amount?

Just trying to clarify since all I've ever done was FE which pretty much gave you a 6 or 9 month advance.

But not sure how commissions work for whole life plans ( or annuities)

Thanks in advance for your clarification.

I know it sounds so simple but rather get it right.

 

[LGilmore]

It's going to depend on who you are writing through. I take my commissions monthly by choice. You'll have to ask them.

 

[scagnt83]

So at $200 monthly, the agent would receive a check for $160 commission monthly for the first year???

Or is it a lump sum commission for the 1st year total premium amount?

But not sure how commissions work for whole life plans ( or annuities)
.

Like LGilmore said it depends on the company. Some will annualize commissions (lump sum) and some pay "as earned"(monthly).
So you will just have to ask.

Since annuities are a lump sum product, first year commission is paid in a lump sum to the agent.

 

[Norwayguy]

Like LGilmore said it depends on the company. Some will annualize commissions (lump sum) and some pay "as earned"(monthly).
So you will just have to ask.

Since annuities are a lump sum product, first year commission is paid in a lump sum to the agent.

Unless it is a flexible premium product in which case some companies will advance a portion of first year commission but mainly it is as earned.