Life Insurance Commission

Life insurance doesn't pay renewal commission? I thought the sale brought in 70-110% and renewals paid 10-15%?
 
Most carriers don't pay renewal on term.....UL will usually pay ~3% renewal, I think whole life pays ~10% renewal but I could be wrong. Probably part of the reason that so much business gets churned.
 
Is there a reason life insurance doesn't pay renewal commissions?

What would be the incentive to keep the customer on the books after the first year then?


Most Term carriers do not pay renewals...Though UL and WL products typically offer Renewals.
 
Most carriers don't pay renewal on term.....UL will usually pay ~3% renewal, I think whole life pays ~10% renewal but I could be wrong. Probably part of the reason that so much business gets churned.



I actually know of agents that will intentionally sell a higher premium term policy so that they can replace it the next year.

Exchanging a policy for one that gives the same benefit at a lower premium is not considered churning; as you are putting the client in a better position. Knowing this during the initial transaction makes it sketchy; but who knows?
 
Can you guys provide insight to the average renewal percentages for UL/WL policies from major carriers such as MoO or NYL? Thanks.
 
Some term companies pay 2% to 3% on term for a couple of years.

I think it would be smart for term companies to pay higher renewals even if they have to lower the front end commissions.
 
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