the profit sharing numbers are ridiculously low, jack.
they work out to be about 1% of your book each year.
Ltc Insurance Question
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the profit sharing numbers are ridiculously low, jack.
they work out to be about 1% of your book each year.
But they say its a Partnership? I am confused. If I contribute $500,000 in a year, they only bump me from 60% to 61%? I dunno, there must be a perk somewhere?? Would I get a cozy Coca Cola group account, maybe? I thought they said there are many experienced producers? Probably all the good group accounts are cherry picked??
I bet their IT people troll all the forums and look for people who post stuff like that... as soon as they find a post like this - the agent is promptly cut out from all the decent accounts and given stinky 2-year old leads instead.
What am I saying... Oops....
I asked a question. If an agent places $500,000 of premium in a year, how much is the dividend check to be agent for being part of your organization and for being a good producer for your organization?
Irena, any insight?
it would be nothing the first year, jack.
you would just be given the "shares".
then the following year you'd get your "dividend" from the "shares".
every time they've announced the dividends, the BIGGEST checks totalled about 1% of the agent's book of biz. if their top producer only gets a dividend equal to about 1% of his book, how much do the other producers get?
it was a great gimmick that got a lot of them to sign on early.
it was a great recruiting tool.
lousy for the agent, but great for the execs.
Shame indeed. Give Irena a chance to respond before jumping up and down.
the dividends were published the first couple years they paid them.
it was very simple math.
Below are the answers to your questions regarding the partnership.
You need to place a minimum of $100K in premium per year to earn shares for that year's production. You earn 20 share grants for every $1000 placed. So, if you placed $500K you would earn 10,000 share grants. Share grants have a 1 year vesting period. Each year you vest your shares from the previous year.
The profit sharing is determined every year based on the company's performance in the previous year. The board of directors (which has a producer class) votes on the amount which will be distributed per share.
Every year is different. We've had profit distributions as high as 40 cents per share.
The important thing to remember about shares is that they are not meant to pay out just in the year when you wrote the business but in the future. You would continue receiving payments on your shares as long as the company is doing well and making distributions. There are agents who have left and continue making money on that in addition to their renewals.
If you placed $500K and earned 10,000 shares you would make each year a different amount based on how well the company does. If the company does really well for 10 years and distributes profits every year you would make money each year. It is really hard to estimate what % that would equal out to because the number varies each year.
You need to place a minimum of $100K in premium per year to earn shares for that year's production. You earn 20 share grants for every $1000 placed. So, if you placed $500K you would earn 10,000 share grants. Share grants have a 1 year vesting period. Each year you vest your shares from the previous year.
The profit sharing is determined every year based on the company's performance in the previous year. The board of directors (which has a producer class) votes on the amount which will be distributed per share.
Every year is different. We've had profit distributions as high as 40 cents per share.
The important thing to remember about shares is that they are not meant to pay out just in the year when you wrote the business but in the future. You would continue receiving payments on your shares as long as the company is doing well and making distributions. There are agents who have left and continue making money on that in addition to their renewals.
If you placed $500K and earned 10,000 shares you would make each year a different amount based on how well the company does. If the company does really well for 10 years and distributes profits every year you would make money each year. It is really hard to estimate what % that would equal out to because the number varies each year.
Okay, thanks Irena for explaining this.
So it is apparent the compensation is less;
So the real key is whether an agent can be provided access to opportunities, group accounts, training, or something that replaces the lost income and allows the agent to grow the business in a way that the agent would not otherwise have been able to accomplish on his/her own.
And this is a unique question which will have a different answer for everyone, I guess.
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