Let's talk a a little bit about how insurance commission payments work for the agents. In this post we will look at two types of insurance commission payments agents can receive: residual income and upfront payments.
Two types of classification of insurance commission payments
1. Residual Income
Residual income is also called passive or recurring income. These are commissions tied to premium payments. The insurance company receives a commission by the time of the sale, then the agent receives an additional payment every time the policy holder renews the policy. An advantage of residual commissions is that once the deal is closed, the agent continues making money from his initial efforts while giving him time to devote to other things like generating more leads.
2. Upfront Payments
An upfront payment is the commission an agent receives at the time the policy holder signs a contract. Life insurance firms use this type of commissions very frequently, it is easier for them to manage commissions that way. It is easy for the agent too, since they don’t have to worry about monthly commission flows.
Eliminate up to 50% of the time you spend designing commission plans.
Whether your insurance firm pays on residual income or upfront payments, Blitz can help you manage those commissions for your agents. At the same time, your agents will have confidence in the incentive plan knowing that they have full insight into the calculation and payment of their commissions from every insurance contract they sell.
There’s more to good pay than the dollar amount - there’s trust, confidence, clarity, and respect. A company that develops, implements and calculates commissions on a world-class platform, like Blitz, demonstrates to its employees (and everybody else’s) that it understands what it means to pay well.