I recently got contracted with Foresters because I have a client that wants 400k in WL, and he's young and a high-income earner, so looking at their Advantage Plus ll product. I thought I read in the advanced commission addendum that there was a cap on earned commissions and per app. This was an old addendum from 2011, so I'm not sure if it's still the case, and if I understood it correctly. Can someone clarify whether Forester caps advanced commissions both in unearned commissions and per app? My Average annual premium is $850. This particular case would have an AP of $13440, and a 9-month advance @ 130% would be an advance of $13104, so quite a bit larger than anything I've ever written. I don't want to get my hopes up hoping for this kind of commission. So if anyone knows and can tell me how Foresters pays out their advances on their WL product, I'd greatly appreciate it.
Foresters cap on advance commissions?
- Thread starter ejg700
- Start date
- 29,516
Seems like I've heard that your FMO has something to say about it. My cap is $3,500.
This is true!
- 16,906
Those caps are to protect you from all the stuff that can wrong. If you got advanced that much and spent the money you would have a hard time paying it back if it charged back. You are much better off taking the majority of a commission like that as earned.
- 4,592
Are you designing this for your benefit or the clients benefit. I am sure the policy would look much better long term if you wrote a small WL base with term rider & added the PUA rider to overfund the contract. will build greater accessible cash values and allow future premium flexibility if client cant pay entire premium.
