Commission Levels for Term Insurance?

[SomeDude99]

Hi,

What is a fair commission level for term insurance with no production requirements? I'm currently at 85% commission on term policies with Centrian Life Insurance. I'm an independent agent. Is this a fair commission level? I have a 120% contract for FE with United Home Life. Just wondering?

 

[pfg1]

Regular term companies vary as to what the street level is. It can also vary by product and face amt.
I have contracts that are less than 85%, and some that are more. Most you have to do a good bit of premium to get up around 100% on term. I'd say 85% is not too bad...I don't know that company at all, so I can't comment. Trad life is a little different than FE when it comes to comp.

 

[JRoot]

90% is "Max Street" with Centrian (which is SBLI in CT) at 20/30 year terms. So yes, this looks fair to me.

 

[DHK]

The highest term comp I've seen is with Assurity Life. Nonmed for 125% and medical required for 115%.

The lowest I've seen is 45% for term or term riders on WL with MassMutual as a career agent.

 

[medsuptage]

I am not familiar with that insurance company you're referring too, isn't that a subsidy of SBLI? Anyway, 85% is very below industry standard. I can think of a few small quirky companies that pay way below industry standard, but the big names are going to pay a lot more than that.

Pay general scales off term, 10 years pays the least, 15 pays more, 20/30 pays the most.

If you're doing all your own marketing, and you're not getting any application support from your upline, you can fairly easily get 115-120% on 20/30 year term with most big companies. A little less for 10/15 year.

so, 120-85=35% being left on the table. So if you're upline isn't providing solid levels of support and marketing for that, you may want to go elsewhere.

Also, if you're indy and wanting to do FE, expand on your FE companies. UHL really doesn't like getting business they don't make it easy for you to write them.

 

[TFMSINC]

In my opinion, 85% is not below industry standards. Of course it depends on how much premium you bring in. I like "paid as earned".

 

[pfg1]

In my opinion, 85% is not below industry standards. Of course it depends on how much premium you bring in. I like "paid as earned".

I agree. Several of the "big companies" don't even go to 115% on term, even if you did a ton of annual premium.
It might be low if you are comparing trad term payouts to FE contracts.

 

[MichaelBurton]

Here you go:

Life Insurance Commissions - Fiduciary Life Insurance Services

 

[SomeDude99]

In CT I cant contract with Banner directly I have to go thru a brokerage. The one I am with now (who are out of NH) offers me the 85% contract with no production requirements. So I guess I should contact every brokerage in the area to see if they can beat what I have. I tend to write a good amount of term insurance so I don't want to be loosing money.

Also, i would assume there is no rule you have to be contracted with a brokerage agency who is located in your home state as I am contracted with one in NH. ?

 

[thomasm]

Here you go:

Life Insurance Commissions - Fiduciary Life Insurance Services

Wow! You really are transparent! Thanks for posting!