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Anyone have a copy of the new Senior Life rates to post here?
Senior Life Unannounced Rate Increase-Normal/Abnormal?
- Thread starter titeye
- Start date
Is FEXquotes updated to the new rates?
On the positive side, higher rates mean more commission as long as your lapse ratio does not increase correspondingly..
- 4,872
One way is the improved persistency that Legacy-Assurance provides.
- 4,872
How sweet it is! Check out this example: Assume the premium is raised by $5 per month. If an agent were on the smallest contract (90%) their increase in commissions would be...
$5 x 12 months x 90% x 75% advance = $40.50 extra per app written!
OR if on 60% advance with chargebacks on the backend....
$5 x 12 months x 90% 60& advance = $32.40 extra per app written!
And then the unadvanced part of the commission is bigger. Then the lifetime renewals will be bigger.
As the carriers raise their prices this year all agents will be making more $$$. Which agent up here will complain about that?
We received them yesterday and will have the new SL rates loaded on tonight's update
- Thread starter
- #17
Let me make sure I understand you fully:
$5 x 12 months x 90% x 75% advance = $40.50 extra per app written.
compared to other carriers...
$5 x 12 months x 120% x 75% advance = $54 extra per app written.
At 200 apps per year, that's $10,800 more just on the front end! This could mean the difference between funding your own defined contribution retirement benefit plan or not having one at all.
...and what is the selling point again?
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- Thread starter
- #19
huh? Im positive he said $40.50.
who said $40,500?
He didn't say it was more money with SL... He said all agents with all companies would make more money if premiums increased.
As for making more money with SL at a lower commission rate, it is possible since the SL premium is higher to begin with. For example, using Standard Life and Casualty at 110% rate and SL at 90% rate:
FEXquotes premium for SL&C is 49.20x12=$590.66x100%= $649.83
Premium for SL is $64.96X12=$779.56x90%=$779.52.
First year commission is $129.69 (20%) more with SL even though the commission rate is 20 points lower. That would cover some missed sales or replacements because of the higher premium..
