Which companies advance commisssions?

Jan 22, 2007

  1. todder
    Offline

    todder Expert

    Posts:
    36
    Likes Received:
    1
    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.
     
  2. Crabcake Johnny
    Offline

    Crabcake Johnny Guru

    Posts:
    14,811
    Likes Received:
    11
    State:
    South Carolina
    There's zero risk involved if you're selling correctly.

    Assurant
    Golden Rule (must find a Key Broker willing to advance you)
    Unicare
    Continental General
    Amerian Republic
    World
     
  3. aufan
    Offline

    aufan Super Genius

    Posts:
    126
    Likes Received:
    0
    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.
     
  4. aufan
    Offline

    aufan Super Genius

    Posts:
    126
    Likes Received:
    0
    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.
     
  5. Crabcake Johnny
    Offline

    Crabcake Johnny Guru

    Posts:
    14,811
    Likes Received:
    11
    State:
    South Carolina
    If charge-backs are an issue for anyone then:

    1) You're hard-closing clients
    2) Not going over how the plans work
    3) Signing up the wrong client base ie; not signing up self-employed clients
     
  6. todder
    Offline

    todder Expert

    Posts:
    36
    Likes Received:
    1
    Thanks guys for the info. You voiced the thoughts I had on the topic. Just good to see confirmation of it.
     
  7. Jdiddy
    Offline

    Jdiddy New Member

    Posts:
    5
    Likes Received:
    0
    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.

    justin
     
  8. Michael Haislip
    Offline

    Michael Haislip Expert

    Posts:
    67
    Likes Received:
    0
    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?
     
Loading...