Understanding Commission
Example
If you do a sale for $100/month premium at 80% comp
$100/month x 12 months = $1,200 Annual Premium
$1,200 x .8 (comp) = $960 Total payout for the sale
$960*.75= $720 advanced commission
If an agent has a 80% comp rate with the carrier and writes a $100/month policy ($1,200 annual policy), the agent will receive $960 total with $720 advanced pay.
This is an advance, so as long as the policy remains active, the agent keeps the money. If the policy is cancelled, the agent will owe the advance back to the carrier. This is known as a “chargeback” and will count against future sales with a carrier.
In the 10th, 11th, and 12th months a policy stays active, the agent will be paid the remaining 25%, known is backend pay.
*Products available to less healthy clients (GIWL) have a lower compensation rate. Please see the comp grids below for more detailed compensation rates.
extended compensation grids
The carriers have different payout rates for every product. Please see below for information on how to find specific comp rates.
NLG - Email nlgcompensation@nationallife.com
TransAmerica: Sends out comp grid when you initially contract, and with every comp increase.
Carrier payout timeline
Aetna/Instabrain: Payment 2-3 days after draft date.
Americo/Chubb: Payment 1-2 business days after draft date.
American Amicable: Payments 2-5 business days after draft date.
Corebridge: Payment the following Wednesday/Thursday after draft date
Ethos: Payment 7-10 business days after draft date, as-earned-no advance.
Mutual of Omaha/TransAmerica: Payment 3-5 business days after draft date.
*First sale in a new state will payout 2-3 business days later than the estimates above.
*Sales payouts can also be delayed if the upline doesn’t have the required state license