How does it work....?

[TonyC]

Forgive me for the question...but i'm a newby.

I was told that Life Insurance pays sometimes between 90-100% of the premium amount.

So...my questions is...if the monthly premium is $25...and the annual is $300...how much is your commission?

thanks in advance...

 

[STIBROKER]

depends on your contract.....

 

[theinuranceguy]

Forgive me for the question...but i'm a newby.

I was told that Life Insurance pays sometimes between 90-100% of the premium amount.

So...my questions is...if the monthly premium is $25...and the annual is $300...how much is your commission?

thanks in advance...

Well It would be anywhere between $270-$300... Most insurance companies only advance up to 9 months... so your inital commission would be $202-225 ... You will then be compenated the rest of the commissions on the 10th 11th and 12th month as long as your client continues to pay premiums...

Forethought Insurance Company is now paying a 12 month advance with 110% Commission:

Sell4Forethought

 

[TonyC]

Jesus....that's peanuts (sigh).

That's for a 100k policy on a 30 year old male...in good health...with no Medical.

Pardon me (for another silly question) but...Where's the money in selling Life?

 

[RandyK72]

If your their agent they are going to come to you. Why not have that? Does'nt everbody need life insurance anyway? Alot more people from all walks of life seem to have it.

 

[David C]

Tony C,

Yeah, you'd have to sell a lot of those to make a decent living.

But what if that was a whole life policy and you made 1500 instead of 300. And what if the renewals were 15% for years 2-3, and 5% for years 3-10???

 

[senior-advisor-indiana]

Jesus....that's peanuts (sigh).

That's for a 100k policy on a 30 year old male...in good health...with no Medical.

Pardon me (for another silly question) but...Where's the money in selling Life?

Obviously you are not going to get rich on one sale. THats a high premium anyway for a 30 yr old male in good health.

 

[James]

Jesus....that's peanuts (sigh).

That's for a 100k policy on a 30 year old male...in good health...with no Medical.

Pardon me (for another silly question) but...Where's the money in selling Life?

I'm not sure if you are attempting satire or serious?

 

[Guest]

Forgive me for the question...but i'm a newby.

I was told that Life Insurance pays sometimes between 90-100% of the premium amount.

So...my questions is...if the monthly premium is $25...and the annual is $300...how much is your commission?

thanks in advance...

Keepin' it real simple:

$25 mo prem = $300AP = $300 commish @ 100% contract.

Do this six days a week (take Sunday off) and:
$150 = $1800AP/commish (6 apps) x 50 weeks = $90,000 for protecting 300 lives.

Or do a $150 app once a week for the same thing. Or any combination in between (more realistic). Either way you are approaching six figures.

Nothing wrong with a lot of small apps; if one or two fall off, doesn't hurt your persistency that much. One or two biggies fall off (out of just a few biggies) hurts you worse. However, individual life insurance is very persistent.

Your $25 term policy eventually terminates if the client lives. You can structure a UL policy with a comparable (low) premium that will lapse approximately the same time as the term. However, the client has choices. He can increase premium anytime to extend the policy, even if uninsurable, decrease death benefit, etc.

You can sell the benefit of a higher premium UL structured like a ROP 'term' (about the same price, approximately). At the end of a period of time the CSV will equal the basis (premiums paid) so they have "kept their money" rather than "thrown it away" with the term and outlived it so it terminates. They now have options: cash out, reduced paid up, keep the policy but stop paying premiums and let CV pay premiums, etc.

I'm new to life insurance too, but these are a few things I have learned, hope they help!

Comments, corrections, and criticisms are welcome from veterans (and others).

 

[TonyC]

Thanks guys...I appreciate your input. i have my comments below

JAMES:
I am being serious. How can you sell a policy @ day for $25/mth? Where is the money in selling Life?

JCF
Sounds good...but how can you sell @ policy @ day?

senior
That's a quote from American Life with no medical.