I currently am getting advance commissions through Assurant. I like getting the money up front even if there is risk involved. I was wondering what other carriers advance? Also, anyones comments on the pros and cons of advances would be great.
Most companies offer advances--at least all of the companies I write for do. Advances help an agent get a "head start" if they are new in the business. There are some disadvantages of course, mainly if you have a client that cancels a policy while in the "advance period".
If you are consistently writing business, and possibly are being paid renewals, then as earned would be a good choice. That's my two cents.
My main health carrier pays a 9 month advance but holds out a reserve to cover cancelled policies. It's already saved my butt once.
Most companies offer advances--at least all of the companies I write for do. Advances help an agent get a "head start" if they are new in the business. There are some disadvantages of course, mainly if you have a client that cancels a policy while in the "advance period".
If you are consistently writing business, and possibly are being paid renewals, then as earned would be a good choice. That's my two cents.
My main health carrier pays a 9 month advance but holds out a reserve to cover cancelled policies. It's already saved my butt once.
Nice post john pretty much sums it all up right there. Everyone will get a charge back eventually and that is just how the world works. If you were that perfect you wouldn't be human.
John is correct when it comes to health insurance; however life is a completely different story. Charge backs will be a way of life, but you will be making 70 to 110% commissions (my primary final expense company pays me %110. You can suck up a life chargeback quite easily if you produce on a regular basis.
You have to think of advances as a loan, that is, someone else is giving you their money. If you had to risk someone else's money, what would you bet it on?
