What are the Highest Life Contracts?

[NSRH]

Do any of you know how high life contracts can go with no production requirements?

Not very high.

 

[Todd King]

I've been talking to a NMO about moving some life contracts and I was sent a grid sheet with contract levels far higher than I even knew were available. These contracts in some cases were 170% which is a full 40% higher than my highest at 130%. There was even a 120% with Gerber! These were all the major carriers and names common to our industry.

I called two friends, one a broker and one a CFP, and neither of them had ever been offered contracts that high. The way we have this figured is that these are probably based on production bonuses but I don't want to sound like a ignoramus when I talk with them. I've been selling insurance since the nineties so I'm not new to the game but WOW what I didn't know. I did check out the NMO and they sold 1.5 billion in annuities over the last ten years according to the official record, so they seem legit, at least on the annuity side.

Do any of you know how high life contracts can go with no production requirements?
What are the highest contracts with production requirements?
If an agent doesn't hit the requirements, are we paid on the traditional contract rate?
If this is an assignment of commissions, I'll pass. Do any of you know of other pitfalls we should look out for?

And NO I am not recruiting agents until I have a least a year under my belt with my current team.

Thanks for any insight!

This one statement makes me concerned about all of the rest. When it comes to Gerber, the only way you get higher than 60% (on the GI Life) is by getting overrides on agents. They will NEVER pay you more than 60% on your own business. That's the max.

Now I'm wondering what else this NMO is trying to lie to you about? Just curious, who is this NMO? Let other agents know who NOT to deal with!

 

[Mattschmidt]

This one statement makes me concerned about all of the rest. When it comes to Gerber, the only way you get higher than 60% (on the GI Life) is by getting overrides on agents. They will NEVER pay you more than 60% on your own business. That's the max.

Now I'm wondering what else this NMO is trying to lie to you about? Just curious, who is this NMO? Let other agents know who NOT to deal with!

Comment said 120% with Gerber. Didn't say how it was paid. Most agents care about one thing. Total commission. Most do not care if it all comes from a carrier, or upline, but only that it gets paid

 

[VolAgent]

Comment said 120% with Gerber. Didn't say how it was paid. Most agents care about one thing. Total commission. Most do not care if it all comes from a carrier, or upline, but only that it gets paid

Exactly what I assumed. Agency is paying it on the side. I imagine Gerber would have a cow if they found out. Gerber seems deadly serious about that 60%, probably because they are a NY company.

 

[Todd King]

I can't say for sure, but I don't think Gerber even goes up to 120% for anyone.

 

[johntrice]

Thanks guys, for all the insight. I talked with a good friend who is a major producer and he doubts that some of the "contract" levels I was seeing were possible. What he did share is that certain carriers have sweetheart deals with larger IMOs. In theses deals, at the end of every quarter the IMO gets a production check, although this is almost never shared with agents. What most of us do is look at our "contract" level because that is how we figure our commissions but we, as agents, don't know much about the additional compensation. One reason is that it's not guaranteed to the IMO, another is that it fluctuates quarter to quarter.

I think the numbers I was looking at might have been total compensation with bonuses to the IMO but not a contract level for the agent. That being said- I noticed on LinkedIn that an agent in Florida recruiting agents to a 150% contract and one mortgage protection shop is crowing about 140%. Having run a shop with 54 agents, we were never offered 150%, so you guys have got me wondering about the smoke and mirrors.

 

[johntrice]

Hi Guys,

I went back in my pictures and I found this chart which was sent to me. These are the contract rates that were sent, which seem unbelievably high. I do mean unbelievably high.

Have any of you seen contract this high or do you know of any IMO on the planet that gives out contracts like this?

As a disclaimer: this was sent to me to recruit my team. I have no reference point as to legitimacy other than that is was forwarded to me by an agent which was also being recruited and by one of the biggest producers in the US.

Send

 

[VolAgent]

Unfortunately the picture is not showing up.

 

[johntrice]

Opps- for some reason the screen shot won't reproduce from my phone but here are the numbers of a few companies:

Allianz 172% Americo 205%, 205% and 190%, Ameritus 170% and 155% Pacific Life 160% 165% and 175% Phoenix 160%, 165% and 175% Prosperity 170%

I assume the different numbers are for different products like term, IUL and GUL. Since I write for some of these companies, the contract levels are a full 30% or more higher than mine.

Anyway, I plan to track the origin of the original message down and see what in the world it takes to get these contract or anywhere in the ball park.

All the best

 

[Todd King]

Opps- for some reason the screen shot won't reproduce from my phone but here are the numbers of a few companies:

Allianz 172% Americo 205%, 205% and 190%, Ameritus 170% and 155% Pacific Life 160% 165% and 175% Phoenix 160%, 165% and 175% Prosperity 170%

I assume the different numbers are for different products like term, IUL and GUL. Since I write for some of these companies, the contract levels are a full 30% or more higher than mine.

Anyway, I plan to track the origin of the original message down and see what in the world it takes to get these contract or anywhere in the ball park.

All the best

Yeah.....not happening! I would love to see who thinks they can get these levels.