What happens to my commissions when I die?

[goillini52]

As far as Med Supps, I checked with several companies a few years ago about what if your spouse died before you? I asked about leaving renewals to a child. They said if you write it out and sign it, your child will need to contact the company with the letter and fill out an EFT direct deposit for their own bank, then they'll get the renewals.

I would think it would work that way with everything that isn't MA/PDP/ACA.

 

[Todd King]

Perhaps it is different with corporations, but most life and health companies do not require a spouse to be licensed to receive vested commissions.

Key word there is "most". Therefore, the spouse will probably need to get licensed.

 

[BuckNasty]

All of my commissions are paid to my corporation; it’s an S-Corp and my wife is a 50% owner. I never thought about this before. If I die, do all commissions cease or could my commissions continue to be paid to the corporation? What is the best way to prepare for this in order to preserve those renewal commissions as much as possible for the benefit of my loved ones?

I don't know how old you are, but lets meet in the middle somewhere and say you are 40. Let's also assume the residuals won't be worth much of anything to your wife after 10 years of attrition. The cost of lawyers, licensing coupled with the confusion of your wife wondering WTF is going on and who to contact makes her taking over less than ideal.

An alternative would be to get a 10 year term policy, paying $3million to your wife, tax-free, no headache, for what...maybe $800 a year?

 

[Yagents]

Great advice on the life insurance alternative!! ......if your insurable.

 

[rousemark]

Key word there is "most". Therefore, the spouse will probably need to get licensed.

I only have one contract which requires the spouse to be licensed After termination. If no spouse, then the estate receives them.

 

[DonP]

What’s Not being said is if you died and the phones were shut off you’d be lucky if 30% of your mapd business was around in 3 yrs . You can have discussions with your fmo to find a buyer for your business if you die . One thing Bill has not said is the motive for your fmo to get your business sold or transferred. If you die and the company stops paying renewals on mapd then your up lines overrides also stop .