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Hello, my name is Vic Schumacher. The company is HPE Financial Services. The topic today,
is how do commissions work, for those agents that sell life insurance? Well, it can be
done a couple of ways. If that agent works for a particular company, they are branded
to that company, or that agent is a broker, and represents a variety of companies. The
insurance company will pay that agent a certain commission. That commission can be paid as
an advance upon the entire policy, or it can be paid upon as earned, on a month to month
basis. Let's just hypothetically say that the commission is a hundred dollars, on a
one month basis. That's what the commission would be. The agent can receive that hundred
dollars per month, for as long as that policy is in existence. If that agent receives an
advance on that, and the company pays them, let's just say, five hundred dollars advance,
and the policy is cancelled, before that five hundred dollar advance has been paid on an
as earned basis, then that agent must return the difference back to the insurance company,
so it's a gamble, as to how long will that policy be in existence. My name is Vic Schumacher.
The company is HPE Financial Services, helping people everyday.