Commission on IUL 1035 Exchange

95-100% of First Year Target Premium is what a lot of agents are on (Street)
+ 2.5-3% for Excess of Target and Renewals.

Thanks! I have a client that also wants to dump in 70k on a 1035 exchange. What is the commission like on this amount?
 
Thanks! I have a client that also wants to dump in 70k on a 1035 exchange. What is the commission like on this amount?

That all depends on your Target Premium..... Age, Face amount, Health rating (Standard or Preferred) etc.

Example: if Target is 2k you are paid 100% on 2k and you are paid 3% on the remaining 68k.

For a total commission of $4,040.....

Now if you use a specialty Carrier that writes a lot of SPWL indexed business such as Sagicor (ages 45-85). Then you are paid 8% (Street) on the entire $70k or $5,600 in Commission.

Foresters has a dividend paying SPWL plan with an increasing Face amount with paid up additions and pays 13.5% (Street) on the entire $70K or $9,450 in Commission.

RNA offers the highest initial Face amount on Deposit for comparable SPWL, however the face does not increase.... although it will pay the highest commission at 15% (Street) or $10,500 in Commission.

It all depends on the goal..... NA offers excellent Cash value build up if you do not get too greedy on the face amount that will eat up cash value...

Personally, I sell a lot of the Foresters SPWL as the Face amount Grows and clients like that.

I also sell a lot of Sagicor's Indexed SPWL plan as it also guarantees return of premium from Day One.... I call it Lawyer proof. It also pays a 10% cash bonus to the policy value and has relaxed underwriting (Simple Issue).

Many Choices for this type of sale.... Feel free to contact me if you want some illustration to compare plans.

Skipper
 
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