what does 120% term commission mean? How do residuals work and what are draws?

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Comments (11)

dex in memphis, Tennessee

92 months ago

Im interested in pursuing a career in insurance can someone explain how insurance agents get paid.

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Jim in Troy, Michigan

91 months ago

What does 120% commission means? In general, one year term premium consider 100%. So 120% commission means you would get more than one year premium as your commission. There will be no residual to you as an agent. But IMO may have very limited residual. email me if you have any insurance questions. gzpxyj@gmail.com

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Tom in Statesboro, Georgia

90 months ago

Jim said -

" What does 120% commission means? In general, one year term premium consider 100%. So 120% commission means you would get more than one year premium as your commission. There will be no residual to you as an agent. "

Not so.

120% means he will receive 120% of the first years premiums as commission.

Example:

$100 monthly premium would pay $120 for each month that is collected by the carrier. Some carriers advance commissions. Some carriers also pay renewal commissions on term - just depends.

Tom

email = indeed@insura-choice.com

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Jim in Royal Oak, Michigan

90 months ago

Tom in Statesboro, Georgia said: Jim said -

" What does 120% commission means? In general, one year term premium consider 100%. So 120% commission means you would get more than one year premium as your commission. There will be no residual to you as an agent. "

Not so.

120% means he will receive 120% of the first years premiums as commission.

Example:

$100 monthly premium would pay $120 for each month that is collected by the carrier. Some carriers advance commissions. Some carriers also pay renewal commissions on term - just depends.

Tom

email = indeed@insura-choice.com

You are right and we are talking about the same thing.

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davetheinsuranceguy in Tucson, Arizona

89 months ago

All you need to know about how these contracts work is at www.insurance-forums.net

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goldie in Dallas, Texas

77 months ago

what are the commissions for a regular homeowners policy?

Any help with this will be appreciated :)

Thanks

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exxtreme in El Monte, California

63 months ago

dex in memphis, Tennessee said: Im interested in pursuing a career in insurance can someone explain how insurance agents get paid.

Pay on commissions and depend on which company you are working for or like me, have your own business and have others people to leverage. Email me if you want to know more about it, I be glad to answer al your questions.
exxtreme.wfg@gmail.com

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exxtreme in El Monte, California

63 months ago

Jim in Troy, Michigan said: What does 120% commission means? In general, one year term premium consider 100%. So 120% commission means you would get more than one year premium as your commission. There will be no residual to you as an agent. But IMO may have very limited residual. email me if you have any insurance questions. gzpxyj@gmail.com

The company that I work for do have residual income even when you leave the company. Email me if you want to know more about it.
exxtreme.wfg@gmail.com

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exxtreme in El Monte, California

63 months ago

Mukesh in Brampton, Ontario said: Hi,

I appreciate your opinion.I am a new insurance guy.Have taken licence renently, yet to join any company.Have met Sunlife,Freedom 55,Investors group...Confused which one to start with.

Kindly advise.

Thanks
Mukesh
mukeshmakhija1@yahoo.com

I could be of your assistance.
I know of a great company with proven records and credibility to work for.
Email me if you want to know more about it.
exxtreme.wfg@gmail.com

Paul

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Nick in Jacksonville Beach, Florida

48 months ago

dex in memphis, Tennessee said: Im interested in pursuing a career in insurance can someone explain how insurance agents get paid.

On Life and Health products The commission rate for 1st year is 100 to 150% and renewals are 8tto 20% depending on rating & quality if the career and product. For a good 20 year guaranteed premium term policy with waiver and convertibility the typical commission is 110 to 150% renewal is 5 to 15%. UL is similar, WL slightly less. DI and other Insurance 100% and 25% respectively.
Since 1990s large insurance carriers with high rating like AA+ with Moody's or S&P) closed their branches and offered contracts to a middleman system called IMOs, MGAs, etc. I don't even care what IMO stand for. All you should know they get 25 to 70% of the above commission from you and 50 to 100% of the renewals for a very tiny amount of work or capital expenditure.
This has happened only because most these middleman were early in jumping in and signing a sweet contract with insurance companies. Insurance companies like this system because they don't have to deal with millions on brokers (producers) like us.
Some of these IMOs get additional bonuses if their overall sales exceeds certain thresholds. They do nothing other than find bunch of independent insurance licensed agents (producers) and sign an agreement to solicit for the insurance company products. Some of these IMOs.... have grown so large that they employ thousands of agents/brokers (producers) you can't even imagine what is their income and wealth.
If you add all your numbers, do the math and get a fair comp. Your should be able to retire on your renewals alone after a few years of hard work.
I am independent financial advisor, I have found a solution for most honest and professional producers. I would like to get a feedback from you and others to get thousands of us involved in solving this problem.

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H. Ellsworth in Meridian, Idaho

28 months ago

Nick, I would like to talk w You... I have been chatting w every IMO from central to western U.S. and am trying to find the right one to park my Life/Health licence with. You made some interesting comments here please email me direct with your contatct info so we can chat! Heather he020361@gmail.com

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