The Truth About Medicare Supplement Commisions..

[VaDwayne]

I had about an hour long conversation today with an agent about various topics but one thing came up that he/she wasn't clear on, and that is how Medicare supplement commissions are paid.

I seems that a lot of agents are thinking that if they sell a Med. supp today, and let's say they make $300 commission, and then they sell another med supp the same time in Feb. of 2012 that they will be doubling their pay for that month in 2012 because they will receive $300 for the new policy(2012) and $300 for the renewal on the old policy(2011).

The fact is you will receive $300.00 for the new policy(2012) and $25 for the renewal(2011) because you will get your $300 renewal paid to you as-earned. So you check for that month will be $325.00 not $600.00. You will eventually get your renewal, and it is really nice when they start adding up in your bank acount, but be patient, it will take awhile.

Now when the next year comes and you are getting a lot of referrals and repeats, renewals on 2 years of sales, and commission on new sales, you will grow to love as-earned commission.

BE PATIENT

 

[YouGotMyMoney]

i thought it was common sense that renewal commissions were all as earned.

 

[Focus LTC]

Remember that some (most) companies won't pay you renewal commissions if you have a debit balance. Your renewals will be used to pay debit until you are debt free. If this is the case, then it will take even longer...

The silver lining is that you'll be out of debt much quicker.

 

[YouGotMyMoney]

Remember that some (most) companies won't pay you renewal commissions if you have a debit balance. Your renewals will be used to pay debit until you are debt free. If this is the case, then it will take even longer...

The silver lining is that you'll be out of debt much quicker.

are you talking about chargebacks, or advances not fully earned yet?

 

[Focus LTC]

are you talking about chargebacks, or advances not fully earned yet?

Good question.

mostly I'm referring to advances not fully earned yet. But, some companies like SLAICO roll any chargebacks to your debit balance so you wont have to pay for them right away... On the same token, they also use your renewals to pay your debit balance.

 

[YouGotMyMoney]

Good question.

mostly I'm referring to advances not fully earned yet. But, some companies like SLAICO roll any chargebacks to your debit balance so you wont have to pay for them right away... On the same token, they also use your renewals to pay your debit balance.

wow if that's true that doesnt make sense to me....

sounds like a scam

 

[Guest]

There are agencies I know of that do this, it's not a scam but its sole purpose is for them (the agency or carrier) to make more money and basically hold the agent hostage, as a slave to working for the agencies interest.

I "used to" work at a place like this, it's terrible.

 

[sman]

This is the reason I choose as earned on all commissions. Of course, if sold properly, there really isn't much to worry about regarding charge backs with Med Supps even if you get advances.

 

[slushpuppyking]

Rookie question here but is this how MS commission works:

-You sell a policy, get $300 (12 month advance) upfront.
-On month 13 you would get $25 (assuming the client renewed)

Do you continue to get the $25 every month there after?

I guess this sounds too good to be true because let's say you sell 100 MS plans in 1 year, that would earn you $30,000. Not a ton of money...but when all those plans reach month 13 they start paying you $25 each per month? So that means your renewal income is also $30,000 per year...

Is this right?

 

[Todd King]

Rookie question here but is this how MS commission works:

-You sell a policy, get $300 (12 month advance) upfront.
-On month 13 you would get $25 (assuming the client renewed)

Do you continue to get the $25 every month there after?

I guess this sounds too good to be true because let's say you sell 100 MS plans in 1 year, that would earn you $30,000. Not a ton of money...but when all those plans reach month 13 they start paying you $25 each per month? So that means your renewal income is also $30,000 per year...

Is this right?

That would be correct except you won't get a 12 month advance with most companies. Most are a 9 month advance. I do have some agents asking me for a 12 month advance. No way!