Reasonable Producer Compensation for Life

Discussion in 'Life Insurance Forum' started by L5tc, Jul 17, 2015.

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  1. L5tc
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    L5tc Super Genius

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    I've been an independent producer in NY for 10 years. The general agency I work with are family friends so frankly I've never questioned compensation. For the most part I'm getting paid between 45-55% on the term. I see much higher numbers bounced around here. They're a big help to me as far as last minute illustrations
    some other sales back-up stuff. However there also very proprietary on illustrative software.

    Is that reasonable compensation? Like I said I seem to see higher numbers here but perhaps I'm looking at it wrong?

    Any help with this I would appreciate.
     
  2. scagnt83
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    scagnt83 Guru

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    I do not sell in NY. But from what I hear NY comp is lower than the rest of the nation. Talk to Tahoe Ray here on the forum. He runs a GA that has a NY office and can tell you what the street comp is in NY for various carriers. If you are not getting street then the GA better be providing LOTS of support that is above and beyond the norm.

    As far as the software goes, I cant stand when an IMO or GA withholds software. Unless they created it themselves it is not proprietary and they need to give you access. You can just login to the various carrier websites you are appointed with and download the carrier software. But if they are using Winflex or IPipeline then they should give you access, no reason not to. Compulife charges per user I think so if they use Compulife then it is understandable that they do not give you access. But IMOs/GAs that give agents access to Winflex or IPipeline are a dime a dozen.
     
  3. L5tc
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    L5tc Super Genius

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    I'm not looking to move necessarily I just want to check. I'm going to start writing with Wells private bankers so I need better than good service. I've got that now as well as access to all carriers.
     
  4. scagnt83
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    Well the best way to judge your current comp is to see what the competition is able to give you. Ray is the last person who will hard sell you on his services... and he is actually fairly selective on who he works with.
    But he is a good guy and is the best resource I know of to ask comp questions on NY products. We were industry friends before we did business together.. but his service when doing business with him is much better than good. Just send him a PM and ask what street is, Im sure he would answer without trying to hard sell you on his services. He is the opposite of most IMOs.
     
  5. cowgoesMoO
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    cowgoesMoO Super Genius

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    I'm licensed in multiple states, my comp on term for most states 80-100 points. But in New York its 50 points, except for prudential which is 70 I believe
     
  6. L5tc
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    L5tc Super Genius

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    Thanks for the answer.!
     
  7. mcouper
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    i think 60 in NY is fair, unless you're doing a "ton" of business, could go 70 for a top producer...and that is doing all of your quotes and back office work. You go sell, i do the rest.
     
  8. tlmarketing
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    In general there is 99% total compensation available in first year, with 55% being agent comp, the balance going to the GA as expense reimbursement allowance (ERA) comp. Many NY based products will pay renewals...just not to you.

    Instead of the GA getting into the bookkeeping business and paying you 55 with renewals for a few years, most share some of their ERA comp in the first year, and keep the renewals.

    Renewals may be 8-10% for first few years, followed by 2-3% for as long as policy is inforce.

    If you take a $10,000 premium 20 year term, the GA renewals will be in the neighborhood of $5,000 - $6000 plus whatever they can keep from you of the ERA...you should grab as much of that first year as possible, and should be at least in the 70% range or more....If you have a bigger case, you can get a single case agreement and pick up close to the full 99%.

    here's some info from the state as well

    Commission and Expenses
     
  9. L5tc
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    L5tc Super Genius

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    Thanks that's great information. In my case my production recently has not been enough for me to get more but fair is fair when the production is up. The renewals on term for the producer are as expected pretty crappy. Met is the best of the term I would use.

    I do wish as "friends" there was more disclosure from my GA friends what they're making since I'm reasonable to deal with. Now I know. Thanks for the help I'll read that NYS stuff.
     
  10. Robert Barney
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    You have to love the state of NY, with its peculiar sense of what protects the consumer. Freedom and capitalism are not considered important priorities.

    You end up with life companies licensed in all other 49 states, staying out of NY, and then a completely separate affiliate that is set up to do NY only.

    Has anyone seen the ads where NY is self promoting a "come to NY" and get a 10 year tax holiday (they call it start-up NY). Having created a business climate and environment that sent everyone packing, now they are trying to convince businesses to come back. I have heard there are darn few takers.

    NY wooing business...good for a laugh?

    But I remember when NY pols where thrilled that Rush Limbaugh had left. Now he pays taxes in FL.
     
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