Commissions After Death

[Norwayguy]

An agent that does that probably names himself as contingent on his clients' policies too.

That's weak sauce.....Naming me as the owner of your policy while allowing you to be the payor and insured protects you from issues with your assistance when the policy goes in value....And since I Wil be processing your loan request on the policy anyway it's a no brainer.

I would how many people would go for that particular pitch.

 

[goillini52]

1. Death claim on your own policy.

2. It's not wise to keep bank accounts active on dead people.

3. Believe it or not, banks read the obituaries. They freeze accounts when they verify a death.

4. It's insurance fraud if someone is collecting the renewals that is not licensed and/or not legally entitled to them.

But I'm sure some would try anyway.

I just checked with both of the banks I use, and they do check the obits. When they see that you've kicked the bucket, they freeze the account and if the joint account holder is different from who the deposits are being made for, they send the money back to the company.

I checked with Aetna and Cigna. With a death certificate(probably a good idea for us to write a note and sign it with our agent # for each company), they'll release the money to who sends it in. I asked about this for one of my kids. They'll send them an EFT form and will direct deposit it in any account they set it up for, for as long as there are commissions to be paid. Cigna mentioned that they won't accept a will. No license required. I assume that most companies handle it this way, but I'll be checking the rest to make sure.

I'm not ready to kick the bucket, just thought I'd look into it before I die.

 

[eersfan]

Instead of the arrangement you have, with an upline, go independent and make more money.

 

[rousemark]

I just checked with both of the banks I use, and they do check the obits. When they see that you've kicked the bucket, they freeze the account and if the joint account holder is different from who the deposits are being made for, they send the money back to the company.

I checked with Aetna and Cigna. With a death certificate(probably a good idea for us to write a note and sign it with our agent # for each company), they'll release the money to who sends it in. I asked about this for one of my kids. They'll send them an EFT form and will direct deposit it in any account they set it up for, for as long as there are commissions to be paid. Cigna mentioned that they won't accept a will. No license required. I assume that most companies handle it this way, but I'll be checking the rest to make sure... May be different depending upon the state of residence.

I'm not ready to kick the bucket, just thought I'd look into it before I die.

The only company I have that requires a beneficiary to be licensed to receive the commission is Columbian.. and then it only applies to the MDO (debit) business because service and collection is required..

 

[VCGLLC]

Instead of the arrangement you have, with an upline, go independent and make more money.

eersfan, newbie here, could you share how the alternative to a traditional fmo relationship -- aka 'going independent' -- allows you to make more money, at least in 2022+ TIA!

on a related matter of continuing commissions past death of an agent....the UHC (DHC external distribution channel) doc states... 'Assignment to an estate, widow(er), or heir: Under the Agent Agreement, death of the agent is an automatic termination. The company shall cease paying compensation to the agent and no further payment shall be due' (even is assigned to your upline agency, it reads)

 

[walthamny]

If your renewals are direct deposited how would they know you died?

They subscribe for the Social Security Database. Annuity companies have an incentive to find out quickly, they do not want to keep sending checks on a dead person. They also run the check on all life policies, but the insurance companies are never in a hurry to find the beneficary. They have been criticised for this practice before. They probably scrub agent SSN as well.

 

[Patty Cake]

I know this post was an old one but I have the same question. I have done Insurance since 1988 and I basically work referrals only and AEP-I do get back with all clients. My daughter is getting into the business and when I pass away how can I make sure she gets my renewals and services my clients?

 

[Patty Cake]

My business renewals are about 50/50 Med Supp with PDP's and MAPD's. My upline indicated to get an attorney. He indicated to be prepared because it has happened to other agents who were not prepared. goillini52 I'm not ready to go either. I know the carriers say they are not our clients but the companies. Of course we all work hard to service and keep our BOB.

 

[DonP]

Patty here is the proper way to do it with Medicare . Especially Medicare advantage and pdp . You need to set up a LLC . Your daughter needs to be a licensed agent in the LLC . The LLC must be licensed in the states you operate in . All commissions are paid to the LLC from all carriers . If you pass it’s seamless as all commissions are already going to the LLC and will continue being paid . Your daughter is already licensed and certified with carriers and a member of your LLC . It’s a pia to do now but that’s the way to do it . If you don’t get your daughter licensed and certified all your mapd renewals will be gone on 90 days to 6 months . They will revert back to the carrier

 

[walthamny]

And dont waste time on this until you know your daughter will stay in this business. I would say its not worth it if she does not have 2 years experience selling insurance