What is the target premium? How is the target premium used in determining the agent compensation?
Target premium is the threshold used to determine how much of the premium counts toward compensation. Any amount paid above the target premium is not included in the compensation calculation. For example:
- First monthly premium: $50
- Target premium: $40
- Compensation rate for any amount below or at target premium: 140%
- Compensation rate for any amount above target premium: 0%
- Compensation on first month premium: ($40 x 140%) + ($10 x 0%) = $56
- Apply the same calculation for each subsequent month in the first policy year.
How can I increase the target premium?
The target premium is directly proportional to the face amount. The higher the face amount, the higher the target premium.
Where can I find the target premium number for each policy?
Target premium is listed at the bottom right of each page of the illustration, before the backslash. For example, in the following illustration, the target premium is $8,340.00.
How often will I get paid for Ethos Protection IUL?
As long as the policy isn’t forward-dated, agents get paid the day after the policy effective date, even if the premium has not been received . You can also track your earnings in real-time in the Agent Portal.
Does Ethos Protection IUL offer any compensation advancement?
Yes, we offer nine months of advance compensation to most agents.
What is the chargeback (clawback) policy?
There is a 100% compensation chargeback if the policy closes within the first six policy months. Starting in month seven, if an agent was paid advanced compensation, the chargeback is prorated based on the number of months compensation was advanced compared to the number of months the premium was paid. If you are paid as-earned, in month seven through twelve there is no chargeback.
Do you offer residuals?
At this time, we do not offer residual compensation(renewal compensation) for Ethos Protection IUL.
How does the true-up process work if I’m on advance compensation?
At the end of your advance pay period, Ethos compares the amount of compensation advanced to you against the actual policy, to make sure your compensation is correct.
If there is a discrepancy, Ethos adjusts the difference in what’s called the “true-up process.” This process happens on the first day of the month following your advance period. This ensures fair, accurate compensation for every agent on every sale.
Example: Bill is on 6-month advance pay terms with Ethos
- On January 1, he sells an Ethos Protection IUL policy. Six months advance pay compensation is paid promptly.
- On July 1 — the first day of the seventh policy month — Ethos checks to see if the policy is still in force.
- Bill’s advanced compensation is compared to the correct amount he should earn on the policy by the end of the advance period, in this case June 30. Any discrepancy is “trued up” as follows:
- If actual premium paid > planned premium for first six months: Additional true-up compensation released*
- If actual premium paid < planned premium for first six months: True-up chargeback processed
- If actual premium paid = planned premium for first six months: No true up required
* Subject to planned premium not exceeding target premium for the policy
How is compensation paid beyond the advance period?
Compensation on recurring premium beyond the advance period is paid monthly on an as-earned basis.
What happens if advance compensation is paid and the premium is either more or less than planned during the advance period?
In the true-up process, Ethos will pay additional compensation on any remaining actual premium paid during the advance period. If the actual premium paid was less than planned premium, Ethos will chargeback excess compensation to align with actual premium paid during the advance period.
What happens if advance compensation is paid and the premium is either more or less than planned after the advance period?
Agents are compensated monthly on an as-earned basis after the advance period ends. Therefore, payments will align to actual premiums paid vs. planned premiums.
How is compensation paid for as-earned agents?
Agents on as-arned compensation are paid in monthly installments as recurring premium payments are received. Compensation on recurring annual premiums is paid in 12 equal payments over the first policy year.
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