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Med Supp Compensation for
Independent Contractor Agents and
Unit Managers
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Agent Training Only
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Liberty National markets Medicare Supplements A, B, F, HDF, and N. This presentation details one of
many compensation opportunities.
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Any policy sold should be suitable to the needs
of the applicant based on their health status and financial
situation.
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Our expectation is that new Agents will be able to sell 5 HDF policies each week –
when appropriate for the customer – and, additionally, sell Liberty Whole Life
products on 3 of those sales, when appropriate.
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I. Agent HDF CommissionII. Agent Life CommissionsIII. Agent Life AdvancesIV. Agent Production BonusV. Agent RenewalsVI. Unit Manager HDF CommissionVII. Unit Manager Life CommissionsVIII. Unit Manager Life AdvancesIX. Unit Manager BonusX. Unit Manager Renewals
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I. Agent HDF Advanced Commission Loans
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Agent Advanced Commission Loans HDF Sales
$54 monthly premium per HDF sale
300% 1st month’s premium = $162
120% months 2-12 + $65
420% Total first-year commission from one HDF sale
$227
Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.
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Agent Advance Commissions Loans HDF Sales
420%Total first-year commission from one HDF sale
= $227
Sales per week x 5
Total first-year commission per week $1,134
Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.
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Agent Advance Commissions Loans HDF Sales
Total first-year commission per week = $1,134
Weeks per year x 52
Total first-year commissions $58,968
Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.
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II. Agent Life Commissions
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Even after the HDF premium is paid and the minimum deposit of $50 made to the Reserve Fund Annuity, money remains.
Agent Commission: 3 LNL Life Sales per Week
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$38 monthly premiums $5k WLN policy
÷ .09 modal factor
$422 annual premium at 65% commission = $274
Agent Commission: 3 Life Sales per Week
What can they do with it? Buy additional coverage!
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$274 Life commission per sale
x 3 Sales per week
$822 Life commission per week
Agent Commission: 3 Life Sales per Week
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III. Agent Life Advances
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70% of commission is Direct Pay on submission
30% deposited into commission account
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Agent LNL Life Advance Commissions
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$274 Life commission per sale
x 70% Advance following week
$191 Advance commission per sale
Agent Commission: 3 LNL Life Sales per Week
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$191 Advance commission per sale
x 3 Sales per week
$573 Advance commission per week
Agent Commission: 3 LNL Life Sales per Week
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$573 Advance commission per week
x 52 Weeks per year
$29,796 Advance commission per year
Agent Commission: 3 Life Sales per Week
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IV. Agent Production Bonus
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But don’t forget about the bonus…
$422 AP per Life Sale
x 3 Policies per week
x 40% Bonus level*
$506 Bonus per week
Agent Bonus: 3 Life Sales per Week*
*Assumes Agent reaches 40% bonus level on 4th consecutive week of $1,000 or more: 1st wk = 10%, 2nd wk = 20%, 3rd wk = 30%, 4th wk = 40%
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So let’s add it all up
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$58,760 HDF commission
+ $29,796 Life advance commission
+ $26,312 Bonus
$114,868 Total commission & bonus
Agent Annual Commissions HDF + Life + Bonus
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$115,076 Total commission & bonus
+ $12,948 From Commission Account
$128,024 Total commission & bonus*
Agent Total Commissions HDF + Life + Bonus
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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Total Agent Compensation*$127,816
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*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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V. Agent Renewals
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HDF: Renewals*
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*According to contract provisions
Months Percentage
13-18 5%
19-36 5%
37-60 15%
60-120 15%
120+ 15%
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Whole Life $50,000 or Less: Renewals*
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*According to contract provisions
Months Percentage
13-18 9%
19-36 9%
37-60 9%
60-120 9%
120+ 9%
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VI. Unit Manager
HDFCommission Advance Loans
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UM Advance Commission Loans HDF Sales
$56 first-year premium per HDF sale
70% 1st month’s premium = $39
50% months 2-12 + $28
120% Total first-year commission from one HDF sale by one Agent
$67
Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.
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UM Advance Commission Loans HDF Sales
Total first-year commission from one HDF sale by one Agent
= $67
Sales per Agent per week x 5
Commission per Agent per week $335
Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.
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UM Advance Commission Loans HDF Sales
$56 first-year premium per HDF sale
Commission per Agent per week = $335
Weeks per year x 52
HDF commission per Agent per year* $17,420
Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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UM Advance Commission Loans HDF Sales on 3 Agents
Commission per Agent per year = $17,420
Agents in Unit x 3
Commission per year with 3 Agents in Unit*
$52,260
Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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UM Advance Commission Loans HDF Sales on 5 Agents
Commission per Agent per year = $17,420
Agents in Unit x 5
Commission per year with 5 Agents in Unit*
$87,100
Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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UM Advance Commission Loans HDF Sales on 7 Agents
Commission per Agent per year = $17,420
Agents in Unit x 7
Commission per year with 7 Agents in Unit*
$121,940
Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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UM Advance Commission Loans HDF Sales on 10 Agents
Commission per Agent per year $17,420
Agents in Unit x 10
Commission per year with 10 Agents in Unit*
$174,200
Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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XII. Unit ManagerLife Commissions
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$38 monthly premiums $5k WLN policy
÷ .09 modal factor
$422 annual premium at 40% commission = $168
UM Commission: 3 Life Sales per Week
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$168 Life commission per sale
x 3 Sales per week
$504 Life commission per week*
UM Commission: 3 Life Sales per Week
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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XIII. Unit ManagerLife Advances
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70% of commission is Direct Pay
30% deposited into commission account
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$168 Life commission per sale
x 70% Advance following week
$117 Advance commission per sale
UM Commission: 3 Life Sales per Week
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$117 Advance commission per sale
x 3 Sales per week
$351 Advance commission per week*
UM Commission: 3 Life Sales per Week
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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$351 Advance commission per week
x 52 Weeks per year
$18,252 Advance commission per year*
UM Commission: 3 Life Sales per Week
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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$18,252 Advance commission per year
x 3 Agents in Unit
$54,756 Advance commission per year*
UM Commission: 3 Life Sales per Week
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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$18,252 Advance commission per year
x 5 Agents in Unit
$91,260 Advance commission per year*
UM Commission: 3 Life Sales per Week
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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$18,252 Advance commission per year
x 7 Agents in Unit
$127,764 Advance commission per year*
UM Commission: 3 Life Sales per Week
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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$18,252 Advance commission per year
x 10 Agents in Unit
$182,520 Advance commission per year*
UM Commission: 3 Life Sales per Week
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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IV. Unit ManagerProduction Bonus
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UM: Bonus
The Unit Manager is eligible for a weekly production bonus that is a percentage of any weekly production bonus received by an Agent on the Unit Manager’s group.
The percentage will depend on the number of 1st time 40% bonus earners during the previous 8 weeks and the Agent’s length of service
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UM: Bonus
Bonus Override % of Agent’s Bonus
# NEW*1st Time 40% Agent’s Weeks of ServiceBonus earners: 1-39 40-78 79+0 40% 15% 10%1 60% 15% 10%2+ 80% 15% 10%
*occurring in the previous 8 week period, adjusted monthly
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UM: Bonus
In the Agent example, the Agent’s bonus was $506.
Assuming the Unit Manager is at the 80% level, the Unit Manager would receive $404 in bonus.
Assuming DCN multiplier of 1.
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Commission per week $320
Bonus per week $404
Compensation per week from 1 Agent* $724
UM: Weekly Compensation from 1 Agent
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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UM Income per week per Agent $724
Agents on Unit x 3
Total Weekly Compensation* $2,172
UM: Weekly Compensation from 3 Agents
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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Income per week $2,172
Weeks per year x 52
Total Annual Compensation* $112,944
UM: Annual Compensation from 3 Agents
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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UM Income per week per Agent $724
Agents on Unit x 5
Total Weekly Compensation* $3,620
UM: Weekly Compensation from 5 Agents
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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Income per week $3,620
Weeks per year x 52
Total Annual Income* $188,240
UM: Annual Income from 5 Agents
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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UM Income per week per Agent $724
Agents on Unit x 7
Total Weekly Compensation* $5,068
UM: Weekly Compensation from 7 Agents
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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Income per week $5,068
Weeks per year x 52
Total Annual Compensation* $263,536
UM: Annual Compensation from 7 Agents
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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UM Income per week per Agent $724
Agents on Unit x 10
Total Weekly Compensation* $7,240
UM: Weekly Compensation from 10 Agents
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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Income per week $7,240
Weeks per year x 52
Total Annual Compensation* $376,480
UM: Annual Compensation from 10 Agents
*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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So let’s add it all up
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Unit Manager Compensation Potential
CommAgents HDF Life Production + BonusPer Unit Comm Advances Bonus Total*
3 $52,260 + $54,756 + $112,944 = $219,9605 $87,100 + $91,260 + $188,240 = $366,6007 $121,940 + $127,764 + $263,536 = $513,24010 $174,200 + $182,520 + $376,480 = $733,200
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*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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Unit Manager Compensation Potential
Agents Annual Commission Total Annual Per Unit Total Account Earnings*
3 $219,960 + $23,400 = $243,3605 $366,600 + $39,000 = $405,6007 $513,240 + $54,600 = $567,84010 $733,200 + $78,000 = $811,200
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*Less any shrinkage from Cancellations, Not-Takens and/or Lapses
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X. Unit Manager Renewals
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Whole Life $50,000 or Less Renewals*
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*According to contract provisions
Months Percentage
13-18 4%
19-36 4%
37-60 4%
60-120 4%
120+ 4%
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The End
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