The Never Ending Commission Cash Flow

The Never Ending Commission Cash Flow

If 220% commission on your business sounds appealing – keep reading! There is a ‘pot of gold’ that is yours for the taking.

Life and Health Insurance policies are being replaced on a daily basis. You are in a never ending battle to keep your clients satisfied with the rates they are paying for their coverage, and with the companies that supply the coverage.

When clients have an increase in their premium, you’re required to either; 1) find ways to justify the increase in premium or, 2) find another carrier with a product that meets the clients’ needs, has a competitive premium, and then re-write the business. You do this year after year wondering if your clients could also be speaking with another broker who is trying to replace the coverage. All this, to keep your clients happy, and keep the renewal or residual commission coming in.

What if there was a product that you did not have to resell every year? Or worry about it being replaced by another broker? What if there was a product that virtually all working clients truly need that would generate a commission every year with a persistency rate of over 90%? That’s right – Disability Income.

Income Protection Insurance has a national average persistency rate of over 90%. Once a policy is in place, Disability Insurance is never, or very rarely, replaced by another broker – and will likely remain in force until your clients’ are 65.

In addition, if you sell Non-Cancellable, Guaranteed Renewable Disability Insurance, the rates are guaranteed to never increase – no explaining or re-selling your clients on an increase in premium. We have several carriers that offer Guaranteed Renewable Disability Insurance policies.

Now, about the compensation…

Most carriers will pay a renewal every year the policy is in force. Some will only pay renewals for 10 years. One top rated insurance carrier pays 50% first year comp and up to 15% renewals for years 2-5 and 13% years 6-10, with a 5% persistency bonus. That is a total of 20% years 2-5 and 18% year 6-10. On top of the 50% first year payout your commission total is 220%. And the cash flow doesn’t stop there – it’s followed by a guaranteed 3% renewal commission beginning year 11 and running throughout the life of the policy.

Offering Disability Income Insurance creates a whole new profit center. I’m still receiving renewal checks on DI business I wrote back in the 80s – I call it “Mailbox Money”.

If you are interested a guaranteed income stream from your book of business for years to come and providing your working clients with peace of mind, I encourage you to contact your Disability Income Specialist to discuss a marketing strategy to fit with your book of business.