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SVTPerformance's Chain of Restaurants
Road Side Pub
7702 plan for retirement?
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<blockquote data-quote="Ohio Snake" data-source="post: 15962785" data-attributes="member: 157862"><p>The article does point out a true fact. The life insurance does have the potential to pay a large commission to the agent based on “how much death benefit” is purchased....hence the dreaded “surrender charge”. And yes, the carrier makes a profit as well. </p><p></p><p>This policy type can be good for certain people, however most will not understand the complexity of it.</p><p></p><p>Slightly edit for more detail on compensation.</p><p></p><p>******* Policies like this have a “target premium” that is hidden in the illustration. The target premium can be the same ( or higher ) than the annual premium. In the case of the 7702 plan, the target should be way less. The target premium can typically be utilized for compensation calculations. As an example, The total annual premium for a 7702 plan policy maybe $15,000 per year on a $500K death benefit. The target premium may be $5K. Carriers may pay the agent compensation of 50% to 100%+ of the target premium in the first year only. THIS IS JUST AN EXAMPLE AS CARRIERS PAY DIFFERENTLY. Obviously, the higher the death benefit, the older the person may lead to a very high pay check for the agent.*******</p><p></p><p></p><p>Sent from my iPad using Tapatalk</p></blockquote><p></p>
[QUOTE="Ohio Snake, post: 15962785, member: 157862"] The article does point out a true fact. The life insurance does have the potential to pay a large commission to the agent based on “how much death benefit” is purchased....hence the dreaded “surrender charge”. And yes, the carrier makes a profit as well. This policy type can be good for certain people, however most will not understand the complexity of it. Slightly edit for more detail on compensation. ******* Policies like this have a “target premium” that is hidden in the illustration. The target premium can be the same ( or higher ) than the annual premium. In the case of the 7702 plan, the target should be way less. The target premium can typically be utilized for compensation calculations. As an example, The total annual premium for a 7702 plan policy maybe $15,000 per year on a $500K death benefit. The target premium may be $5K. Carriers may pay the agent compensation of 50% to 100%+ of the target premium in the first year only. THIS IS JUST AN EXAMPLE AS CARRIERS PAY DIFFERENTLY. Obviously, the higher the death benefit, the older the person may lead to a very high pay check for the agent.******* Sent from my iPad using Tapatalk [/QUOTE]
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SVTPerformance's Chain of Restaurants
Road Side Pub
7702 plan for retirement?
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