What Are Average Residuals on Life (if Any)?

[kamp]

I am contracted with around 200 companies with each varying in different aspects of the insurance industry.

I've sold life insurance in the past but only on a captive basis.

What, if any, are the average residuals on the different kinds of life insurance; whole, term, single premium, final expense etc?

Are there any companies or FMO's that offer these things?

Thanks

 

[Newby]

I am contracted with around 200 companies with each varying in different aspects of the insurance industry.

I've sold life insurance in the past but only on a captive basis.

What, if any, are the average residuals on the different kinds of life insurance; whole, term, single premium, final expense etc?

Are there any companies or FMO's that offer these things?

Thanks

They aren't called residuals they are called renewals.

It's all over the board. From as low as 1% to around 10% at the high end.

Most FE these days pays 7-8% to year 5 and then tapers off. Some companies still pay level to year 10.

 

[rousemark]

I am contracted with around 200 companies with each varying in different aspects of the insurance industry.

I've sold life insurance in the past but only on a captive basis.

What, if any, are the average residuals on the different kinds of life insurance; whole, term, single premium, final expense etc?

Are there any companies or FMO's that offer these things?

Thanks

What in the world will do with 200 companies? There is no way you stay current on that many.. Sounds like you need to narrow down the field, at least enough so that you are able to read your contracts and learn what the renewals are..

 

[kamp]

What in the world will do with 200 companies? There is no way you stay current on that many.. Sounds like you need to narrow down the field, at least enough so that you are able to read your contracts and learn what the renewals are..

I only use a few dozen of them. I usually only work with FE/Single Premium stuff as my main business is supps/annuities. That said, I'm not going to turn down sales from clients who have younger people who are always calling about life insurance. I just don't want to get paid 120% on something and then never get paid again..as it was at one time (in a land far far away) on the captive side.

-Newby-renewals are the same as residual income. Just search it as it relates to insurance sales.

What's with the condescension? The rest of your response, which is appreciated is all you needed to post.

Thanks

 

[rousemark]

I only use a few dozen of them. I usually only work with FE/Single Premium stuff as my main business is supps/annuities. That said, I'm not going to turn down sales from clients who have younger people who are always calling about life insurance. I just don't want to get paid 120% on something and then never get paid again..as it was at one time (in a land far far away) on the captive side.

-Newby-renewals are the same as residual income. Just search it as it relates to insurance sales.

What's with the condescension? The rest of your response, which is appreciated is all you needed to post.

Thanks

Words mean things.. Renewals are not the same as residual income.. As general rule, renewals are only paid when a policy renews by paying the premium and there are certain actions required of the agent to continue to receive them. Residual income is the amount of income that an individual has after all personal debts, including the mortgage, have been paid. The other definition of resiual income is "do something once and make money on it for the rest of your life" A good example of this would be royalties from writing a book. Renewals and Residuals are totally different. I am certain Newby did not mean for his post to be condescending. That is not his style. He was just pointing out the proper term to use as related to insurance.. If you look at your contracts you will not find one that mentions "residuals".

As far renewals go, you mention term.. Many life carriers do not pay renewals on term insurance. Renewals on UL are generally low. WL usually pays the better renewal rates of all the life products.