- 1,926
Reviewed the new term rates by ON Friday and in most cases their rates for varying amounts and age , compared with the other top 5 carriers, they were at some times 30% or more less.
Ohio National
- Thread starter bluemarlin08
- Start date
- 15,319
As I recall, their commissions were quite low. I don't know of any GA's who work with them so you need to contract directly.
All this was probably correct as of about 3-4 years ago but I'd love to have an update.
Rick
All this was probably correct as of about 3-4 years ago but I'd love to have an update.
Rick
- 7,790
Ohio National has not changed----still need to contract directly with them. Good smoker rates, though.
- 596
I recently contracted with them: there are two options, a PPGA contract and a regular GA contract. If you can produce, the PPGA contract is a much better opportunity. The term does pay 3% renewels, with a 25% bonus in the 5th year for persistency. The term has two options, one with full conversion into any ON permanent product and one option that is only convertable into a loss leader permanent policy (UL I believe). Good company, I'd take a look.
Atlas
Expert
I know a few ON guys they love ON and make some ood money
It is my understanding that Ohio Nationals' two contract options are as follows: They have a career agency system and a PPGA contract. You cannot "choose" either one as the career agency system is within the middle states only, run by GA's and corporate GA's.
In these middle states you cannot get a PPGA contract. You must be a career agent with a GA of O.N.. You can be a GA but you would have to recruit and build up a agency, just as The Guardian or Mass. I doubt they give out the GA option out as freely as they do the career or PPGA contract. The GA option is just like any other career company, you can't just walk in and ask for GA contract with the Guardian, neither can you with ON.
The PPGA contracts are the only contracts you can get on the outer rim of the States. ex. Oregon, Washington, California, Arizona, Jersey, Florida etc.. With this contract you can place people under you as a producer at a lower payout (So, you could get the producing agent contract if you wanted, under another PPGA, however ON discourages it and would like their career/GA channel to handle that).
The PPGA and career contract are virtually identical with the only difference being in payout and therefore qualification for counsel is slightly less for the career guys. But they (career guys) can get expense allowances, benefits, training from GA and probably a nice office. So it's 6 in one, half dozen in the other.
I'm looking at my PPGA contract right now and see ZERO renewals for any term product that you can write today. I don't think anybody (may be the big Mutuals) are paying renewals on new term business. (Please correct me if I'm wrong, as I would love to receive renewals on my term block
"25% bonus in the 5th year for persistency"
I'm not seeing this anywhere either. There is a renewal enhancement bonus which can increase your renewals up to 25% but that gets triggered by how much NAFYC (50% of premium) you write.
Where are you getting your info from?
I think this is one of the best run insurance companies out there.
Nak4Life
M
Macdaddy
Guest
When you say that ON pays lower commissions, how low are we talking about? They are very close to me and I go to church with a guy that is a project manager there.
Macdaddy,
It depends on what area of the country you are in as to what contract you can even get eg. PPGA or Career Agent contract. I have PPGA contract, which is the only one that's available where I live, and the lowest payout for that contract is 75% FYC on term and and 75-80 on WL (generally speaking, depending on the WL product sold). The highest payout on WL is 145% and 105% on term. UL basically falls in between the two for max payout. I think the highest you can walk in at is at level 6, a 98% payout on term (you need proof of production obviously).
Payout level is determined by production. There are technically 11 Levels, though no one can drop below level 3 which is the 75% FYC payout.
There is a Renewal enhancement bonus as well, which increases your renewals (not on term, as there are no renewals on term with ON) is also based on production.
One major point to note is that as you climb levels of payout ALL your previous business is retroactively adjusted to your now higher payout as if you were always there and paid immediately (next commission disbursal day) in one lump some on the commission difference you did not receive. So, really the low payout is only realized while you are at that level and then as you go up another level, it is as if you never were at the lower payout. Also, your payout level is NOT reset/dropped the next calender year, you start where you finished on Dec 31st.
In addition, any product line contributes to your contract level. So, sell an annuity get bumped up in payout and all life is bumped up!
The career contract would be slightly lower in payout, however as said above, you would have additional resources, benefits which certainly can be measured as a form of remuneration from the company.
The only way one could say that ON has a low payout is if they only occasionally submit business to them, in which case I agree that they should probably go write with someone else. However, ON offers much more to the producer (support, training opportunities) then does a West Coast life for example. If you wish to maximize your contract with any one company then ON is a top contender.
Regards,
Nak4Life
It depends on what area of the country you are in as to what contract you can even get eg. PPGA or Career Agent contract. I have PPGA contract, which is the only one that's available where I live, and the lowest payout for that contract is 75% FYC on term and and 75-80 on WL (generally speaking, depending on the WL product sold). The highest payout on WL is 145% and 105% on term. UL basically falls in between the two for max payout. I think the highest you can walk in at is at level 6, a 98% payout on term (you need proof of production obviously).
Payout level is determined by production. There are technically 11 Levels, though no one can drop below level 3 which is the 75% FYC payout.
There is a Renewal enhancement bonus as well, which increases your renewals (not on term, as there are no renewals on term with ON) is also based on production.
One major point to note is that as you climb levels of payout ALL your previous business is retroactively adjusted to your now higher payout as if you were always there and paid immediately (next commission disbursal day) in one lump some on the commission difference you did not receive. So, really the low payout is only realized while you are at that level and then as you go up another level, it is as if you never were at the lower payout. Also, your payout level is NOT reset/dropped the next calender year, you start where you finished on Dec 31st.
In addition, any product line contributes to your contract level. So, sell an annuity get bumped up in payout and all life is bumped up!
The career contract would be slightly lower in payout, however as said above, you would have additional resources, benefits which certainly can be measured as a form of remuneration from the company.
The only way one could say that ON has a low payout is if they only occasionally submit business to them, in which case I agree that they should probably go write with someone else. However, ON offers much more to the producer (support, training opportunities) then does a West Coast life for example. If you wish to maximize your contract with any one company then ON is a top contender.
Regards,
Nak4Life
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