Assurant Critical Illness

[OklaMan]

I am about to appoint directly with Assurant Health, and was wondering what commission percentage that I should expect to receive. I have been selling their products for the past several years, and have sold a sizable amount of their products. I was contracted through a BGA, rather than being contracted directly. I have been released from that appointment, but I want to make sure I negotiate a fair commission percentage.

Any thoughts, insight, or experience would be appreciated.

 

[FLM2]

I am about to appoint directly with Assurant Health, and was wondering what commission percentage that I should expect to receive. I have been selling their products for the past several years, and have sold a sizable amount of their products. I was contracted through a BGA, rather than being contracted directly. I have been released from that appointment, but I want to make sure I negotiate a fair commission percentage.

Any thoughts, insight, or experience would be appreciated.

Tier 1 GA commissions for CI are, I believe, 60%, it takes significant production to get one of the higher Tier levels.

For some reason my Assurant agent website won't download my latest commission schedule for Supplemental but I believe the 60% is correct.

 

[OklaMan]

Tier 1 GA commissions for CI are, I believe, 60%, it takes significant production to get one of the higher Tier levels.

For some reason my Assurant agent website won't download my latest commission schedule for Supplemental but I believe the 60% is correct.

From what I am understanding so far, 60% is the lowest possible commission level for Assurant's CI product. I am speaking of their term life chassis critical illness.

 

[YouGotMyMoney]

From what I am understanding so far, 60% is the lowest possible commission level for Assurant's CI product. I am speaking of their term life chassis critical illness.

If your gonna sell term life CI, why not sell Assurity or CBL and make 30-50%+ more?

 

[OklaMan]

If your gonna sell term life CI, why not sell Assurity or CBL and make 30-50%+ more?

I am appointed with CBL, and my commission rate is in the range you're mentioning. And that is exactly the motivation for my question. Assurant has a much easier, online application process, so I enjoy the convenience of their application. But not at the expense of, in my case, 30-40% less commission. So, I was asking around to see if comparable commissions are realistic. There's no sense in me trying to negotiate a comparable percentage from Assurant, if it's not realistic. The only reason why I may have some ability to negotiate with them, is because I've done a pretty fair amount of business with them over the past 5 years, or so.

 

[FLM2]

From what I am understanding so far, 60% is the lowest possible commission level for Assurant's CI product. I am speaking of their term life chassis critical illness.

That's what I said, Tier 1 is the lowest commission level for a GA with Assurant.

I believe Tier 2 is 65% for CI.

To get significantly higher commissions you need Tier 3 but that is for $1M+ in annualized premium in the previous year. I know this because I am at Tier 3 for 2014.

Assurant's CI product has pretty strict underwriting guidelines as well, definitely tougher that CBL with slightly lower rates.

 

[AllenChicago]

I've come to the realization after 12 years of selling C.I. that a higher renewal commission is more important than a higher first year, if the trade-off of that big first-year commission is a puny 5% renewal.

Dearborn National/Colorado Bankers life is a prime example of big first year and puny renewals for the next 9 years. Then, they auto-renew (guaranteed re-issue) this 10 year term policy and cut the agent out of the picture all-together...unless the agent contacts the client and re-writes it..assuming the client is still healthy enough to qualify.

 

[OklaMan]

That's what I said, Tier 1 is the lowest commission level for a GA with Assurant.

I believe Tier 2 is 65% for CI.

To get significantly higher commissions you need Tier 3 but that is for $1M+ in annualized premium in the previous year. I know this because I am at Tier 3 for 2014.

Assurant's CI product has pretty strict underwriting guidelines as well, definitely tougher that CBL with slightly lower rates.

Yes, I think you're spot on, after getting some other feedback yesterday. While I write a significant amount of CI, I am not up to $1M. So it might have to be CBL for me.

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I've come to the realization after 12 years of selling C.I. that a higher renewal commission is more important than a higher first year, if the trade-off of that big first-year commission is a puny 5% renewal.

Dearborn National/Colorado Bankers life is a prime example of big first year and puny renewals for the next 9 years. Then, they auto-renew (guaranteed re-issue) this 10 year term policy and cut the agent out of the picture all-together...unless the agent contacts the client and re-writes it..assuming the client is still healthy enough to qualify.

You make a valid point worth considering, however, it's been my experience that CI policies, most often, doesn't stay on the books for over ten years. And it looks like the difference I would receive in 1st year commissions between the two companies, is sizable. I would just say, it would take several years of renewals to equal the difference of what I will receive on first year commissions.

I do appreciate all forum member input, greatly. And if anyone else has further input, I'm all ears.

 

[Gabe9175]

I am about to appoint directly with Assurant Health, and was wondering what commission percentage that I should expect to receive. I have been selling their products for the past several years, and have sold a sizable amount of their products. I was contracted through a BGA, rather than being contracted directly. I have been released from that appointment, but I want to make sure I negotiate a fair commission percentage.

Any thoughts, insight, or experience would be appreciated.

GA Tier 1 pays 70% and Tier 2 pays 75% with Assurants CI