Limited Pay Policy Commissions

[DayTimer]

For simplified issue limited pay policies, e.g. 10 pay life, 20 pay life, commissions of first year commissions of 100%+ are readily available. For example, I have a contract with carrier ABC that pays me more than 100% on their 10 pay life final expense product.

For those who have fully underwritten limited pay product contracts, what would be a reasonable expectation for first year commissions?

 

[shonceman]

For simplified issue limited pay policies, e.g. 10 pay life, 20 pay life, commissions of first year commissions of 100%+ are readily available. For example, I have a contract with carrier ABC that pays me more than 100% on their 10 pay life final expense product.

For those who have fully underwritten limited pay product contracts, what would be a reasonable expectation for first year commissions?

For the FU product from my own carrier ABC, I’m making 10% less than I would on the simplified issue limited pay plan, and much lower renewals.

 

[Tahoe Ray]

For simplified issue limited pay policies, e.g. 10 pay life, 20 pay life, commissions of first year commissions of 100%+ are readily available. For example, I have a contract with carrier ABC that pays me more than 100% on their 10 pay life final expense product.

For those who have fully underwritten limited pay product contracts, what would be a reasonable expectation for first year commissions?

If it's something like a GUL, it's the same % that you'd get with a life pay but based on target premium (which is normally about what the premium would be if it was a life pay). You will also get paid "excess" which is normally a few % points and is the difference between what the 10 pay costs and what the target is.

For example, if a 60yo PNT Male wanted to 10 pay a 500k GUL, it would cost about 17.6k/yr. You'd be paid your full comp % on the target, which in this case was 8200 and then a small % on the excess of 9400 (17600-8200).

If you're talking about par WL from the big mutuals, 30-35% is normally street.

 

[DayTimer]

If you're talking about par WL from the big mutuals, 30-35% is normally street.

That's what I was looking for, to be honest. My original pst was not as clear as I should have made it. Yes, what is street for a participating whole life with a mutual insurance company.

Your answer of 30-35% is what I have received from others, so I would say that must be fairly accurate.

Thank you!

 

[Newby]

That's what I was looking for, to be honest. My original pst was not as clear as I should have made it. Yes, what is street for a participating whole life with a mutual insurance company.

Your answer of 30-35% is what I have received from others, so I would say that must be fairly accurate.

Thank you!

Our three most popular companies for 10 and 20 pays (now that Settlers is gone) are Trans, Lafayette and KSKJ.

Trans pays over 100% on 10 pays

Lafayette pays 41% on their 10 pay 2% renewals

KSKJ pays 80% on 20 pay and 50% on 10 pay and they pay the same 5% renewal.

But remember the premium is higher on limited pay than lifetime pay so you are getting a smaller % of a larger premium.

 

[DayTimer]

Trans pays over 100% on 10 pays

Lafayette pays 41% on their 10 pay 2% renewals

KSKJ pays 80% on 20 pay and 50% on 10 pay and they pay the same 5% renewal.

Thanks @Newby!

Trans is simplified issue and my contract pays over 100%

KSKJ is pretty strong at 50% FYC as that is a fully underwritten product, if I am not mistaken.

I assume Lafayette's is also fully underwritten, correct? And Lafayette is a mutual company, I believe. KSKJ is a fraternal. So in terms of "apples to apples" if I were to compare Mass Mutual, Ohio National, Northwestern to any of the three, Lafayette would be the best comparison, correct?

 

[Newby]

Thanks @Newby!

Trans is simplified issue and my contract pays over 100%

KSKJ is pretty strong at 50% FYC as that is a fully underwritten product, if I am not mistaken.

I assume Lafayette's is also fully underwritten, correct? And Lafayette is a mutual company, I believe. KSKJ is a fraternal. So in terms of "apples to apples" if I were to compare Mass Mutual, Ohio National, Northwestern to any of the three, Lafayette would be the best comparison, correct?

All fraternal are Mutuals. But not all mutuals are fraternals.

Yes Lafayette is going to be more comparable to Mass Mutual, Northwestern and Ohio National.

 

[DayTimer]

All fraternal are Mutuals. But not all mutuals are fraternals.

A fountain of knowledge you are today, Newby! Thank you!