Calculating Commissions

To calculate your commissions, use the following formula:

(Commissionable Amount) x (Field %) x (Level %)

CALCULATION EXAMPLE:

Company:                                                        LSW

Writing Date/Application Sign Date:             03/01/2011

Product Name:                                                Flex Life

Provider Reference:                                        5582

Field Percent:                                                  75%

Writing Agent:                                                Level 20 (VP)

Commissionable Amount: $632.50 (Per Provider)

TA:   $632.50 (Commissionable Amount) x 75% (Field %) x 30% (level 05) = $ 142.31

SA:   $632.50 (Commissionable Amount) x 75% (Field %) x 10% (level 10) = $   47.40

PVP: $632.50 (Commissionable Amount) x 75% (Field %) x 15% (level 15) = $   71.16

VP:   $632.50 (Commissionable Amount) x 75% (Field %) x 45% (level 20) = $ 213.47

Total payment = $ 474.34

OR using your Commission Statement

Total Field Commission x Level % = Commission

$474.00 x 30% (level 01) = $ 142.20

$474.00 x 10% (level 10) = $   47.40

$474.00 x 15% (level 15) = $   71.10

$474.00 x 45% (level 20) = $ 213.30

Total payment $ 474.00

See Also:

How to Calculate an Advanced Commission

How to Calculate a Split commission

Note: Commissionable amount is not displayed on commission statements.  For IUL products, commissions are generally based on Target or Annual Premium, whichever is lower.

Note: Above calculation is for illustration purposes only.  Numbers may vary depending upon product, actual commissionable amount, field percent and agent level.