Which Carriers Pick from List

[Rearden]

What good is it if they won't approve the person? I don't think the compensation matters on a case not placed.

The implication is - with all else equal - why would an agent sacrifice precious commission dollars when one can get coverage with United Heritage/Transamerica/Settlers at a 50% higher commission?

The assumption is the agent cares first about commission versus competitiveness -- ie, if I had to choose between 5Star Graded and United Heritage Graded, would I rather get paid 80%, or 115% to 120% with United Heritage?

The answer, as always, is to each his own.

 

[bboman23]

What good is it if they won't approve the person? I don't think the compensation matters on a case not placed.

Good for a new agent to know what companies don't cut commission on those ages. I didn't know that about UH until I saw his post.

 

[jdeasy]

The implication is - with all else equal - why would an agent sacrifice precious commission dollars when one can get coverage with United Heritage/Transamerica/Settlers at a 50% higher commission?

The assumption is the agent cares first about commission versus competitiveness -- ie, if I had to choose between 5Star Graded and United Heritage Graded, would I rather get paid 80%, or 115% to 120% with United Heritage?

The answer, as always, is to each his own.

If all things are equal then yes, go with the one that pays the most. But all things are not equal. I know for a fact that a person won't get approved the same at Trans or Settlers if they are on insulin, {just one example}, as they would at RNA.

And who is paying 50% higher commission? Right now if you are with FEX you would get paid 95% on ages 81-85 with RNA. Are you trying to say that someone is paying you 145% on those ages elsewhere? After the first of the year it will be 85%. Who's paying 135% on those ages?

As for you other questions? Depends. How much is the premium difference to the client?

I just wrote a husband and wife with 2 different companies. I wanted to put them both with RNA. But the premium difference for the husband was $11/mo with RNA over the best for him. I wrote him on the $11/mo lower premium. 30 points lower commission for me on the company I put him with.

As you said, "to each his own".

 

[Rearden]

If all things are equal then yes, go with the one that pays the most. But all things are not equal. I know for a fact that a person won't get approved the same at Trans or Settlers if they are on insulin, {just one example}, as they would at RNA.

And who is paying 50% higher commission? Right now if you are with FEX you would get paid 95% on ages 81-85 with RNA. Are you trying to say that someone is paying you 145% on those ages elsewhere? After the first of the year it will be 85%. Who's paying 135% on those ages?

As for you other questions? Depends. How much is the premium difference to the client?

I just wrote a husband and wife with 2 different companies. I wanted to put them both with RNA. But the premium difference for the husband was $11/mo with RNA over the best for him. I wrote him on the $11/mo lower premium. 30 points lower commission for me on the company I put him with.

As you said, "to each his own".

50% more commission compared to 5Star, not 50 more points than 5Star.

80FYC+(50% more commission*80FYC) = 120 point contract.

If you were to write 5 graded cases a week, you'd look at a total of 400FYC versus 600%FYC -- that would be a 200FYC difference.

Expanded to 12 months, 200FYC*12 months = 2400FYC difference between a Graded Plan at 80% versus a Graded Plan at 120%.

If your average case size is 600, that's $14,400 in commission you've left on the table to sell the most competitive premium.

Clearly, these is hypothetical, but the point I'm making is you (plural) leave a lot of commission on the table when reaching for 5Star every time you need a Graded plan over the course of a year.

Even if the premium is higher -- 80% of 600 is $480 versus 120% of 600 is $720 -- even if you only keep the case for 8 months, you have made the same as a 80% contract pays out over 12 months.

It's something to consider -- like you said, to each his own - I think it's worth the extra $5-$10 higher premium to take that risk.

 

[jdeasy]

50% more commission compared to 5Star, not 50 more points than 5Star.

80FYC+(50% more commission*80FYC) = 120 point contract.

If you were to write 5 graded cases a week, you'd look at a total of 400FYC versus 600%FYC -- that would be a 200FYC difference.

Expanded to 12 months, 200FYC*12 months = 2400FYC difference between a Graded Plan at 80% versus a Graded Plan at 120%.

If your average case size is 600, that's $14,400 in commission you've left on the table to sell the most competitive premium.

Clearly, these is hypothetical, but the point I'm making is you (plural) leave a lot of commission on the table when reaching for 5Star every time you need a Graded plan over the course of a year.

Even if the premium is higher -- 80% of 600 is $480 versus 120% of 600 is $720 -- even if you only keep the case for 8 months, you have made the same as a 80% contract pays out over 12 months.

It's something to consider -- like you said, to each his own - I think it's worth the extra $5-$10 higher premium to take that risk.

I've written 1 greaded plan this year and 1 ROP plan this year.

I don't feel I'm reaching for anything nor do I understand your math at all.

But the day I start looking at commission levels before anything else is the day I need to get out of this business.

 

[Rearden]

I've written 1 greaded plan this year and 1 ROP plan this year.

I don't feel I'm reaching for anything nor do I understand your math at all.

But the day I start looking at commission levels before anything else is the day I need to get out of this business.

You (plural) -- I was referring to all agents, not necessarily you.

You are the exception if you have only written one Graded plan all year -- hats off to you. Wish my prospects were as healthy as yours, as even with Americo's UP2, TA's Standard, there are still times I must write a Graded plan, usually several times a month.

Like I said, while it's all hypothetical and agents have multiple factors to consider when writing a carrier (competitiveness, underwriting, etc.), the point is that there are a lot of agents who are unnecessarily reducing their own comp when placing Graded business, when they could get paid the same as a Level plan.

 

[JoshC]

I've written 1 greaded plan this year and 1 ROP plan this year.

I don't feel I'm reaching for anything nor do I understand your math at all.

But the day I start looking at commission levels before anything else is the day I need to get out of this business.

Just curious, how have you written so little graded? I've not even been doing this a month and already run into two folks that seemingly couldn't get level. One had a Pacemaker, all sorts of maintenance meds that showed up on knockout lists, and three inhalers. I called him in to 5star just to take a shot in the dark and was surprised they took it. The other had stents put in a year ago.

 

[Gooner]

Just curious, how have you written so little graded? I've not even been doing this a month and already run into two folks that seemingly couldn't get level. One had a Pacemaker, all sorts of maintenance meds that showed up on knockout lists, and three inhalers. I called him in to 5star just to take a shot in the dark and was surprised they took it. The other had stents put in a year ago.

He sends them to MoO. I'd be broke if I did that

 

[jdeasy]

Just curious, how have you written so little graded? I've not even been doing this a month and already run into two folks that seemingly couldn't get level. One had a Pacemaker, all sorts of maintenance meds that showed up on knockout lists, and three inhalers. I called him in to 5star just to take a shot in the dark and was surprised they took it. The other had stents put in a year ago.

Sometimes I write graded. I usually do more than 1 in a year but this year I haven't.

I have enough companies that I get almost everyone with some health conditions level coverage. if I can't I will offer graded. I find most people don't want graded.

If they are in terrible health I send them to MoO. For me to have written 1 ROP plan this year is far above my average.

The guy qualified for AmCon's ROP. It was $5/mo more than MoO. I told him that but he wanted to have me as the agent and he tought that was worth $5/mo. I have 5 other policies in that home so that's why it was an exception.