- 4,132
What you have to figure out is how training allowance is considered. With NYL back in the day it was earned. Once you made x amount of commission they matched dollar for dollar to a certain point. That money was yours, no strings. The thing was it was a earn it or lose it on a declining scale. So your first month in the business also gave you the greatest opportunity to earn the most traning allowance. Once that month was over, so was that month's allotment.
Very smart on NYL part... An offer of a big "bonus" out of the gate to start with them, but the probability was still in their favor about the payout as life policies at best still took a month to place. Unless you were writing quick pay sales, your first months applications wouldn't be paid till second or third month. While real slick in hindsight as I look at it, what ever training allowance I earned was "mine" no matter what.
Other carriers may offer a different version of training allowance, but you need to read the fine print... quite often training allowance turns into a "loan" if you leave the carrier. Something to consider if you struggle in this business and can't make it, you get double whammy'd by also now having to repay a "loan".
Very smart on NYL part... An offer of a big "bonus" out of the gate to start with them, but the probability was still in their favor about the payout as life policies at best still took a month to place. Unless you were writing quick pay sales, your first months applications wouldn't be paid till second or third month. While real slick in hindsight as I look at it, what ever training allowance I earned was "mine" no matter what.
Other carriers may offer a different version of training allowance, but you need to read the fine print... quite often training allowance turns into a "loan" if you leave the carrier. Something to consider if you struggle in this business and can't make it, you get double whammy'd by also now having to repay a "loan".
