Voluntary Carrier Commission and Compensation Practices Spotlight™ Report

Cost: $3,500; published 2023

Recruiting the right type of broker is essential to the success of a voluntary carrier, and a key component of attracting brokers is a competitive compensation program.

The 2023 Voluntary Carrier Commissions and Compensation Practices Spotlight™ Report provides the latest information on this important topic. With this data, carriers can compare their current commissions and compensation program with other carriers in the industry to determine if they need to make adjustments to remain competitive.

    View Table of Contents

    1. Executive Summary

    A. Report Objectives

    B. Methodology

    C. Key Findings

    2. Detailed Carrier Findings

    A. Commissions

    1. Number of Commission Schedules

    2. Percent of Commissions Paid at High and Low Levels

    3. Heaped vs. Level Commissions

    4. Term Life Commissions

    5. Universal Life Commissions

    6. Whole Life Commissions

    7. Short-Term Disability Commissions

    8. Long-Term Disability Commissions

    9. Accident Commissions

    10. Cancer Commissions

    11. Critical Illness Commissions

    12. Hospital Indemnity/Supplemental Medical Commissions

    13. Dental Commissions

    14. Vision Commissions

    15. Other Commissions

    16. First-Year Rates for Subsequent Years

    17. Commission Splits

    18. Modified or Reduced Commissions

    19. Commission Differences with Carrier Enrollment Support

    20. Commission Differences by Type of Enrollment

    21. Commission Differences When Technology Fees are Paid

    22. Commission Differences for Takeover

    23. Benchmarks Used for Commissions

    B. Vesting

    1. Vesting of Commissions

    2. Renewals for Non-Vested Producers

    3. Broker of Record Letters

    C. Advances

    1. Advance Practices

    2. Percent of Brokers Using Advances

    3. Timing of Advances

    4. Interest Charged on Debit Balances

    5. Advance Recapture and Percent of Advances Recaptured

    6. Impact of Persistency on Advances

    D. Bonuses and Other Compensation

    1. Bonuses

    2. Qualifications for Bonuses

    3. Contests, Conferences, and Trips

    4. Licensing and Appointment Fees

    5. Other Compensation

    E. Payment Procedures and Reporting

    1. Payment Frequency

    2. Payment Types

    3. Reporting Options/Services

    4. Types of Commission Statements

    F. Compensation Changes and Future Trends

    1. Changes to Compensation System/Structure

    2. Future Compensation Changes

    3. Desired Compensation Changes

    3. Commission Schedules by Company

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