Page 14 - Lasting Mark : Life Book 2025

COMPENSATION

Commissions
Life insurance commissions refer to the compensation that insurance agents receive for selling life insurance
policies. These commissions are typically paid by the insurance company to the agent who sells the policy.
The structure and amount of commissions can vary significantly depending on the insurance company, the
type of policy sold, and the regulatory environment in which the sale occurs.

Annualized Premium (AP) - The total amount of premium paid by a client over the course of one year.
Ex: Monthly Premium $50 x 12 (Months) = $600 AP

Submitted Premium - The total amount of annualized premium (AP) that was written and submitted to the
insurance carrier for final approval.
Ex: 7 Applications for $5,040 (Week Total) = $5,040 Submitted Premium

Submitted Applications - The total number of applications that was written and submitted to the insurance
carrier for final approval.
Ex: 25 Applications for $18,345 (Month Total) = 25 Submitted Applications

Issued/Paid Premium (IP) - The total amount of premium that was submitted and issued (approved) by the
insurance carrier and the commission has been paid to the agent.
Ex: 25 Applications for $18,345 (Month Total) = $18,345 Submitted Premium
$18,345 Submitted Premium x 88% Placement Rate = $16,143.60 Issued/Paid Premium

14 | DOING LIFE WITH LASTING MARK