Single Premium Life Insurance

Mar 15, 2008

  1. Winter_123
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    Winter_123 Guru

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    In general, how does commission or payout work on a single premium life insurance sale?

    You must get an immediate percentage of the total lump sum premium, I would imagine. What is that percentage in general without getting into a big street level versus MGA discussion. Just looking for a sense of how that type of product pays out.

    Thanks.

    Winter
     
  2. Dave020
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    I believe that it is similar to an annuity commission as opposed to a life premium commission. Probably something like 3-4% on the lump sum.
     
    Dave020, Mar 15, 2008
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  3. ims01
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    It is going to depend a lot on the product you use: Whole Life, UL, EIUL, etc. But in general, you will be paid First Yr. Commission on the target premium and then a much smaller amount on the "Excess". You should expect 50-80% for the FYC, again depending on the product.
     
    ims01, Mar 15, 2008
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  4. senior-advisor-indiana
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    SPWL will pay 9-15% on lump sum. SPUL 70-80% for target and 3% on excess.
     
  5. Dave020
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    Cool, thanks. I knew it was lower than the traditional premium commission on regular WL/UL, but couldn't remember the range of numbers.

    Basically it gets treated for commission more similar to an annuity than a life product.
     
    Dave020, Mar 15, 2008
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  6. Newby
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    It's usually from 7-14% and it's paid on the face amount not the premium. There can be quite a difference.
     
    Newby, Mar 15, 2008
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  7. Guest
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    How do you define "target premium" in this context?

    Al
     
    Guest, Mar 15, 2008
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  8. senior-advisor-indiana
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    The companies I use pay on the premium, not the face amount. Was that a typo?
     
  9. Newby
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    Hmmm. I could be wrong on most companies. Forethought, Monumental and NGL pay on the face of their single pay pre-need policies. I'm not sure if they all do the same on their final expense versions.
     
    Newby, Mar 15, 2008
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  10. senior-advisor-indiana
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    I haven't looked at Monumentals single pay FE, but I would bet that it is paid on the premium.
     
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