Scotty1980
Super Genius
- 107
Does term insurance pay renewals to its agents? What is the average? What carriers are best? What is their commissions?
Does Term Insurance Pay Renewals?
- Thread starter Scotty1980
- Start date
- 4,689
Generally, term insurance does not pay renewals. Commission ranges from around 80%-120% depending on the company and your IMO.
Too many great carriers to list them all but a few good ones would be Prudential, Banner, Genworth, SBLI, Protective and ING-Reliastar.
Too many great carriers to list them all but a few good ones would be Prudential, Banner, Genworth, SBLI, Protective and ING-Reliastar.
- 19,032
Some companies pay renewals for term, some don't. Most of the companies I write do pay renewals for term but the amount is only around 1%. I have one that pays 1.5%.
- 8,707
Jdeasy,
on the carrier that pay renewals what is your FYC compared to companies that don't pay renewals...I remember being with NYL and being pitched renewals and service fees as a good reason to sell for them...The problem was FYC was 50% and then 2-10 years was 5% and then a 1 or 2% service fee....so after 10 years I would have recieved 95% or I can sell many companies term products and get 100+% in year one and resell the guy years down the road
- 19,032
Jdeasy,
on the carrier that pay renewals what is your FYC compared to companies that don't pay renewals...I remember being with NYL and being pitched renewals and service fees as a good reason to sell for them...The problem was FYC was 50% and then 2-10 years was 5% and then a 1 or 2% service fee....so after 10 years I would have recieved 95% or I can sell many companies term products and get 100+% in year one and resell the guy years down the road
Most of the term companies I have that pay renewals were companies I write while with NAA so the first year commissions are screwed up anyway. For example, F&G, I get 1% renewals now from them and I was at 80% 1st year. What could I have gotten with them had I not been thru NAA? I don't know.
I get renewals from Shenadoah. Most with them are at 1% but some of ther's are 1.5%. I termed my contract with them thru NAA where I was at 75% 1st year and went to an IMO at 100% 1st year. I still get the same renewals of 1 to 1.5% with them.
Now I have RNA's term at 105% and don't get renewals from them at all on the term products.
SignatureFG
New Member
- 16
The IMO/MGA can determine your renewal payouts as well. Look around and ask if they hold renewals.
I don't know what they're paying now, but Security Mutual of NY, Western Reserve, the late great Empire General, and handful of others I knew actually paid decent renewals on term policies. I think WR paid around 3% and the FYC was good as well, but they had something like a 2 year chargeback period.
