Annualization/Commission Advances

[term2u]

I was wondering if anyone knows of specific BGAs who allow agents to annualize/advance their commissions? I'm in the process of acquiring a rather large book of business (almost 5k clients) and will be fronting a lot of the initial capital, but I could use the upfront commission advances in order to help with cash flows.

I have also already procured a BGA who has offered average comp levels around 110-120% per most of the main carriers and will not have to split any cases. Therefore, the whole pie would go to me.

I have already verified that Protective, Banner and Genworth are among the few carriers that allow annualization/commission advances, but any input would be appreciated. My understanding is that the BGA is the deciding factor.

 

[Jerard]

I was wondering if anyone knows of specific BGAs who allow agents to annualize/advance their commissions? I'm in the process of acquiring a rather large book of business (almost 5k clients) and will be fronting a lot of the initial capital, but I could use the upfront commission advances in order to help with cash flows.

I have also already procured a BGA who has offered average comp levels around 110-120% per most of the main carriers and will not have to split any cases. Therefore, the whole pie would go to me.

I have already verified that Protective, Banner and Genworth are among the few carriers that allow annualization/commission advances, but any input would be appreciated. My understanding is that the BGA is the deciding factor.

Unless your credit is bad and/or have Vectors most all will annualize the monthly premium and will advance from 50% to 75% of that.

 

[term2u]

Unless your credit is bad and/or have Vectors most all will annualize the monthly premium and will advance from 50% to 75% of that.

Awesome, thanks! I'll just start hammering BGAs and see what they say. I have a 790 FICO, so I should be good.

 

[DHK]

Some companies will have a cap on your annualization amounts, so you'll want to check on that.

For example: Midland National has a $3,000 cap per policy and Assurity Life has a $3,500 cap per policy.

 

[pcbinsurance]

Some go as low as $1500.

 

[jlata1]

I'm at $7500 per case with American General. Pru,Met etc won't advance.Many of the bigger co's won't advance. American General charges 4% interest to advance.

 

[JRoot]

Look into inforcepro.com to manage that book of business. Very valuable when acquiring and/or managing an aged book of life business.

 

[WinoBlues]

Look into inforcepro.com to manage that book of business. Very valuable when acquiring and/or managing an aged book of life business.

Hey Jeff, Very interesting tool.