Is the Street Rate for Term Policies 70-75% Commission with No Renewals?

How many simplified issue can you write will you are waiting to get paid on the "bigger" case? Won't the premium be almost the same or even higher meaning that that you can write 5 cases for example at $50/month vs a $150/mo term and get paid faster at the same time.

Spoken like a true FE agent....

If a person is able to pass underwriting then they are much better off with a fully underwritten policy. SI policies cost a good bit more vs. a Fully Underwritten policy.

So if the person can pass UW and are not a deadbeat who is going to lapse the policy in 2 months, and you are an ethical agent, then you sell them a Fully Underwritten policy.

The only exception to that is if they are dead-set against a medical exam. But over my 10 years I have found that those who are serious about coverage are willing to do a medical exam 99% of the time.


You also forgot to mention that FE has almost 4x the lapse rate in the first year vs. Fully Underwritten, and 3x the second year, 2x the third year, and does not reach the same lapse rate as FU until year 8.

So in otherwords you do 3x the work, but your renewals are 3x less.... plus for the clients that were able to pass UW they pay a higher premium than they should have... and often for a carrier that has a lower financial rating.


*If you work the FE "demographic" then I have no problem with pushing FE policies. But when an agent recommends a FE policy for a person with a good job and their life together and could pass UW.... and fails to tell them that they could pay 50% less for a FU policy... or demonizes the UW process in the presentation. That is when I have an issue.
Many also do not realize that at the average FE levels of DB the FU policies are often non-med.
 
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What should an agent expect to get for commissions on term policies and UL or whole life policies?

On some of my 10 year term I get 70-80% and 4% renewals. The 20 and 30 year term go up to 110%+.

On fully underwritten WL I'm at 85-90% with 6% renewals most places.

No idea on UL. I haven't written one in 7 or 8 years.

On SIWL my lowest is 85% and my highest is 130%. Renewals range from 5-10%.

So street on a 10 year tem is probably in the range you stated. Not so much for longer term or other products.
 
Beyond product payouts....commission rate can also be based on experience and production.
 
What should an agent expect to get for commissions on term policies and UL or whole life policies?

Much of this depends on how much experience you have in the business and how much production you do on an annual basis. It also depends on which carrier the case is being written with. With the majority of companies we represent, term comp ranges from 70% to 100% and UL and WL ranges from 75% to 90%. With career shop companies like MassMutual and Guardian, the comp is going to be significantly lower.
 
I'm getting 45% to 55% on year commission. Any one know better it out rates in New York. I know Target on Ul's is different in NY and less flexible. I've been with the same family run GA since I started doing this 10 years ago.
 
I'm getting 45% to 55% on year commission. Any one know better it out rates in New York. I know Target on Ul's is different in NY and less flexible. I've been with the same family run GA since I started doing this 10 years ago.

Shoot me a pm with your info. NY has different commission rates than the rest of the country (those numbers are street in NY) but there is room for you to get more...especially if you've been in the business for 10 years.
 
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