What Are Daily Commissions?

[Tahoe Ray]

Ray the difference may be that annuities typically pay once. So that would be more like a life insurance advance.

That's a good point...I didn't consider that.

Plus most of my life sales are annual so very similar in regards to comp.

 

[AboutThatLife]

I don't understand how this is an "accounting nightmare"

I have a few annuity carriers that pay daily, and it hasn't been a problem.

My books are done every two weeks so everything just rolls together.

Well, instead of having to look at up to 20 different debits every month, I only have to look for 4. If I get a chargeback, I don't have to worry getting charged back on up to 20 different days each month.

It just seems to make more sense to me. Especially when you consider calculating advances, deferred compensation, and taxes.