Commission Information

30-45-25 Payout Advance

30-45-25 Payout Advance

When an application is submitted for an LSW FLEXLIFE, members will receive a 30% advance on submission.  The initial advance will generate 100% of the points based on annual payouts.  Once the policy is placed or issued, as defined by the provider, members will receive a second commission advance of 45%.  The remaining 25% is paid out evenly over months 9-12 as long as the policy is still in good standings without any changes.

Payout Statements

When reviewing payout statements members will see a The Company transaction type of “Submit” for the first 30% advance and a The Company transaction type of “FYC” for the 2nd advance when placed.

Why Policy Delivery is Important

Acceptance of the policy or contract and payment of premium are two of the last steps that must occur in order for the contract or policy to be placed in-force or active in-force. All policies include a “right to examine” (also called “free look” or “right to cancel”) provision clause that allows the client a period of time (usually 10-30 days) to examine the policy and, if they:

  1. choose, return the policy for a full refund of their premium payment(s).
  2. Prompt delivery of the policy, on the agent’s part, along with obtaining a delivery receipt, is critical to allow the client their right to examine the policy.
  3. Delivering the policy in person is an opportunity to review the product features with the client and bolster the relationship.
  4. Make certain to deliver the policy to the client in the state the product was solicited and written.
  5. If there is any subsequent complaint or dispute over the policy, proof of delivery may be a key in establishing whether the client was afforded the “right to examine” and failed to exercise it.