Why Insurance Companies and You Will Benefit From Persistency

Why Insurance Companies and You Will Benefit From Persistency

Persistency is a way of measuring of how long a life insurance company’s policies are staying in-force/active, which is used to measure their success. Unfortunately, many policy owners fail to keep their policies in-force long enough to realize the intended benefits, meaning the policy has been terminated/lapsed. Poor persistency is perpetual problem for the life insurance industry.

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How Are Life Insurance Agents Paid?

How Are Life Insurance Agents Paid?

Life insurance selling commission ranges from 50 to 140 percent of the first year’s premium, which varies greatly depending upon the purchased policy and initial rate guarantee. Generally speaking, the longer the rate guarantee, the higher the selling commission. However, the commission on policy renewal is very low, typically only 1-5 percent. A new producer compensation model is currently being discussed, which would benefit all parties.

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How To Determine the Performance of a Life Insurance Policy

How To Determine the Performance of a Life Insurance Policy

When determining the performance of a life insurance policy, there are four components, which are directly related to the actual premium you pay, to take into consideration. The premium you pay on your life insurance policy may fluctuate from year-to-year if any of these components change; they are mortality, administrative expense, interest rates and persistency.

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What Is the Cheapest Life Insurance Payment Option?

What Is the Cheapest Life Insurance Payment Option?

When it comes to a life insurance premium, you have the choice of whether to pay your premium on a monthly, quarterly, semi-annually or annually basis. Changing how often you pay premium could save you a lot of money. Most insurance companies will typically charge extra when you pay anything other than annually. This is a factor applied to the annual premium to arrive at the premium if you elect to pay on a semi-annual,…

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