Typical Commission Question

[squeed]

Can one of the experienced agents please post some examples of what a typical commission would be for typically sold products.

For example.

1. Sold a Life Policy worth $X and was paid $Y commissions
2. Sold an auto policy worth $X and was paid $Y commissions

etc...

I'm trying to get an idea of how things work.

-S

 

[souldeux]

Can one of the experienced agents please post some examples of what a typical commission would be for typically sold products.

For example.

1. Sold a Life Policy worth and was paid commissions
2. Sold an auto policy worth and was paid commissions

etc...

I'm trying to get an idea of how things work.

-S

Well, I'm not exactly experienced, but I'm certainly an agent.

For my life products, take nine months worth of premiums and then multiply them by anywhere from 80% - 110% depending on the company. That's the advance. The last three months of the year come later, and then I get 1% - 3% renewals (I think, I'd have to look). The exception is Fidelity, which isn't medically underwritten - I get a six month advance there, not nine.

For health, take the first nine months and multiply them by somewhere between 15% - 20% depending on the company. That's the advance, and the last three months come later. I get anywhere from 3% - 7% on renewals, as earned, in the following years. The exception is Assurant, who advances the full year.

P&C stuff is out of my realm. Did that help at all?

 

[squeed]

Yes, thank you. All information is helping. I know that I'm getting let go soon, I'm in sales, and I'm looking at insurance as a change in profession. But I'm freaking out because I make a decent living on commission now and starting over is very stressful.

I don't want to be one of those guys who drops out after year one.

-S

 

[YouGotMyMoney]

You will only fail if you want to or believe you can.

 

[StrategyMan]

On the life/health side, commissions will vary from company to company. Compare apples to apples and choose 2 or 3 companies to compare and find the best commission structure for yourself depending upon your IMO needs. I would start with the standards like Genworth, West Coast Life and Protective. Everything else will fall into place.

By the way, I recommend looking at more than just commission structure when choosing your IMO. Consider who will provide you the best training, support and services as well. It is worth 5 or 10% of your commission if you receive faster timely support, particularily if your IMO will help you with the paperwork and getting cases issued!!!