What is the life insurance corporate agency's commission structure?

Question

What is the life insurance corporate agency's commission structure?

Answer 1

Hi

I am working as an Insurance Consultant since last 5 years. Comm structure for Corporate Agency is totally different from the comm structure of Agents. It depends on how much business a corporate agent is procuring for a Insurance company. There is no fix structure. Corporate agent can bargain  with the Insurance company. Secondly, Corporate Agents dont get any comm on renewals.

Let me also clarify abt the comm structure of Agents :

1) Endowment Policy / Money Back Policy / Whole Life policy - its  20 to 35 %  in first year , then 5 % on renewals

2) For ULIPS  , its 8 to 14 % in first year , then 2 to 4 % on renewals. Some companies does not offer any renewal comm on ULIPs  after 3rd year onward.

Comm structure vary from company to company.

Cheers !!

Answer 2

Career agencies usually pay 50% of first year premiums, brokers can get over 100% of first year premiums. Yes I said over 100%.

Answer 3

DO you mean howm uch is the pay??

Answer 4

I have seen some start as low as 25% and go as high as 200% or more.  It depends on the product, company, amount, etc.