Target Premium Commissions

Target Premium Comp Plan

A Target Premium comp plan is used for universal life and other life products that pay a base commission on “target premium” as determined by the carrier.  A lower commission rate is paid on the “excess” premium over the target amount.  Commissions can be advanced during first year, renewals, or both.

Sample Target Premium Schedule
Begin Year
End Year
Base Rate
Excess Rate
Advanced Rate
Advanced Cap
1
1
90%
3%
75%
$2,500
2
10
3%
3%





Add

  1. Go to Main Menu.
  2. Click Comp Plans.
  3. Click ADD COMP PLAN.
  4. Name the plan.
  5. Type - select Target Premium.
  6. Carriers - select the comp plans for the Comp Plan.
  7. End Year - select the ending year for the first time period.  Select Endless if the commission continues forever.
  8. Base Rate - enter the base commission rate for the first commission period.  This is the rate that will be applied to the target premium.
  9. Excess Rate - enter the excess commission rate for the first commission period.  This is the rate that will be applied to any amount over the target premium during the period selected.
  10. Advanced Rate - if commissions are advanced, enter the percentage amount that is advanced.  (9 months = 75%, 12 months = 100%).  If commissions are not advanced, leave this field blank.
  11. Advanced Cap - if commissions are advanced, a carrier may limit that amount of commission that is advanced.  Enter the maximum amount here.  If commissions are not advanced, leave this field blank.
  12. Click ADD ROW for additional commission periods.  For renewal periods, use the same rate for the base and excess rates if the commission is the same for both.
  13. Add a description of the plan (optional).
  14. Click the delete icon  to remove a row.
  15. Click SAVE.

Edit

  1. Go to Main Menu.
  2. Click Comp Plans.
  3. Click the Comp Plan name.
  4. Make changes.
  5. Click SAVE.

Duplicate

  1. Go to Main Menu.
  2. Click Comp Plans.
  3. Click the box next to the comp plan to duplicate. Only one comp plan at a time can be duplicated.
  4. Click the duplicate icon  .
  5. Make changes.
  6. Click SAVE.

Delete

  1. Go to Main Menu.
  2. Click Comp Plans.
  3. Click the box next to the comp plans to delete.
  4. Click the delete icon . The comp plan will be removed from all policies linked to it.
  5. Click CONTINUE.

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