What is a Fair Commission Rate (GA Level) for a Group Term Life..

wave828

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I have looked thru the forum and seen commission rates as low as 40% for life and as high as about 80%. SURELY worksite companies have higher commission rates than this for life insurance products sold thru worksite...

Does anybody know of a competitive company with a decent comp structure for a GA/IMO operation?

Thanks!
 
Re: What is a Fair Commission Rate (GA Level) for a Group Term Li

I haven't done worksite but my understanding is the commission for these products is lower than with the fully underwritten policies.
 
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Re: What is a Fair Commission Rate (GA Level) for a Group Term Li

I haven't done worksite but my understanding is the commission these products is lower than with the fully underwritten policies.

thanks xrac. Anybody else have any information about what levels may be out there?
 
Re: What is a Fair Commission Rate (GA Level) for a Group Term Li

Group term pays anywhere from 10 to 15% every renewal. I don't do them because it requires a lot of lives since premiums are so low. If you sell simplified issue individual terms and have them pay through payroll, you get paid the individual policy commission.
 
Re: What is a Fair Commission Rate (GA Level) for a Group Term Li

Group term pays anywhere from 10 to 15% every renewal. I don't do them because it requires a lot of lives since premiums are so low. If you sell simplified issue individual terms and have them pay through payroll, you get paid the individual policy commission.

thank you Franz.

If we sell a simplified product thru PD or 125, are you saying the comp should be similar to a normal individual comp structure, say 100-125 points, depending on company?
 
Re: What is a Fair Commission Rate (GA Level) for a Group Term Li

I am a little confused. Your question was "What is a Fair Commission Rate (GA Level) for a Group Term Life.

Group term is not voluntary or worksite, which is why I asked. Commission is very little due to the cost, usually $0.40 per $1,000 of coverage. So a 50 life group ($20k of coverage) will generate about $400 of premium and I doubt if you could get a contract above 50%, as a GA.
Hope this helps.
 
Re: What is a Fair Commission Rate (GA Level) for a Group Term Li

thank you Franz.

If we sell a simplified product thru PD or 125, are you saying the comp should be similar to a normal individual comp structure, say 100-125 points, depending on company?

You can sell any ordinary individual plans and have the insurance company listbill. I mention simplified issue because employees don't like needles. (125 requires group term).

Again I have no expertise in groups but I know group terms can be voluntary (actually a lot of them are voluntary). Please correct me if I'm wrong.
 
Re: What is a Fair Commission Rate (GA Level) for a Group Term Li

You can sell any ordinary individual plans and have the insurance company listbill. I mention simplified issue because employees don't like needles. (125 requires group term).

Again I have no expertise in groups but I know group terms can be voluntary (actually a lot of them are voluntary). Please correct me if I'm wrong.

Good point.

Let me clarify - what I am looking for are commission rates for term life policies sold on 125 plans that are individually underwritten (simplified basis), NOT guaranteed issue. These are voluntary plans for employees to choose their own benefit level.
 
Re: What is a Fair Commission Rate (GA Level) for a Group Term Li

Good point.

Let me clarify - what I am looking for are commission rates for term life policies sold on 125 plans that are individually underwritten (simplified basis), NOT guaranteed issue. These are voluntary plans for employees to choose their own benefit level.


If this is a true voluntary group benefit with underwriting questions you would be around 10-15% as stated above.

Is this a small group?
 
Re: What is a Fair Commission Rate (GA Level) for a Group Term Li

Good point.

Let me clarify - what I am looking for are commission rates for term life policies sold on 125 plans that are individually underwritten (simplified basis), NOT guaranteed issue. These are voluntary plans for employees to choose their own benefit level.

You want to pretax the life premiums? That is all a 125 plan is going to do is pretax the premiums. Just list bill an individual plan..Many carriers set up for this business with minimums typically around 3 lives.
 

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