Would someone explain those percentages?

[SShockley21]

Ok please don't laugh at me but I'm new so I need this broken down for me. I had the unfortunate error of being with American Income Life temporarily. They started me out at 50% and said that I could work up to 65%. So I thought this went to 100%. After being on this forum I see things like 120%, 140%, and so on. I just want to know, how high do these percentages go, and if I want the best comp plan it looks like I should be independent, is that right? By the way, I'm looking for my new career presently and interviewing right now. I probably won't be able to be independent at first because I can't afford leads and other things needed to be independent which means I'll have to take a lower percentage, free leads, and hopefully not be captive. If there are any suggestions then I'd appreciate it.

 

[Tahoe Ray]

Ok please don't laugh at me but I'm new so I need this broken down for me. I had the unfortunate error of being with American Income Life temporarily. They started me out at 50% and said that I could work up to 65%. So I thought this went to 100%. After being on this forum I see things like 120%, 140%, and so on. I just want to know, how high do these percentages go, and if I want the best comp plan it looks like I should be independent, is that right? By the way, I'm looking for my new career presently and interviewing right now. I probably won't be able to be independent at first because I can't afford leads and other things needed to be independent which means I'll have to take a lower percentage, free leads, and hopefully not be captive. If there are any suggestions then I'd appreciate it.

I don't know what type of life AIL primarily sells (so hopefully someone can compare) but:

Big mutuals typically pay 55-85
Traditional life (term, GUL, IUL) pays 80-95/100
Final expense and mortgage protection (which is simplified issue term, often built for a lot of health risks) will pay 100-130.

So, it really depends on your market.

 

[SShockley21]

Thanks for the info! Just for the record AIL pays 50 starting out and that can increase to 65. They sell FE and MP.

 

[DHK]

Evaluating %'s without understanding the volume to fill those %'s is a math error at best.

Let me put it this way:
FE & MP: If your average sale is $1,200 ($100/month), you could get a 120% contract to advance you 75% (9 months) of the 1st year premiums.
$1,200 x 120% = $1,440 x 75% = $1,080

Traditional life: If I sell a 10-pay annual premium whole life policy:
$50,000 x 45% = $22,500 + bonuses or overrides.

It really depends on what kinds of problems you're solving and the premiums you're selling, not the %'s. As @Tahoe Ray pointed out it really depends on your market.

 

[Cornelius]

DHK I know what you posted for the WL is an example but for something like that which is a 10 pay is that type of premium mostly marketed to or a solution for Executives and business owners?

 

[DayTimer]

but for something like that which is a 10 pay is that type of premium mostly marketed to or a solution for Executives and business owners?

It is a strategy marketed to savers who would like to covert forever taxed money to never taxed money. $50k premium on a 10 pay is only $500k.

 

[DHK]

DHK I know what you posted for the WL is an example but for something like that which is a 10 pay is that type of premium mostly marketed to or a solution for Executives and business owners?

Not all premiums are paid out of earnings.

 

[DHK]

It could also be an executive bonus plan, salary continuation plan, and/or split dollar plan.

Lots of variation in the business owner / executive benefit program areas.