Please note the following:

  • The Target Premium (TP) for Universal Life policies is defined per $1,000 of Face Amount of the policy and may vary with plan, age, sex, death benefit option and smoker status of the insured.
  • The commission percentages shown will be applied to all applications issued through your assigned agent hierarchy, less any commissions paid directly to agents or subagents assigned to you.
  • Commission for all policies written in California will be reduced 7%.
  • When a policyholder increases the Face Amount of a Universal Life policy, whether by exercising the Policy Change provision contained in the policy or a provision contained in a policy rider, the Increase TP will be treated as if it were a new policy for compensation purposes and will follow the Universal Life table for First Year Commission or rolling target premium. An increase resulting from a change in the Death Benefit Option is not treated as an increase for compensation purposes.
  • Internal Replacements will pay out based on a replacement factor of 1% of the Target.
  • Unearned annualized compensation will be charged back when:
    – Your contract is terminated;
    – A policy is terminated (including cancellations,  surrenders, lapses and death);
    – A policy is removed from Check-O-Matic mode or the monthly draft is reduced; or
    – A policy reaches its first anniversary and the earned compensation is insufficient to cover the annualized commission amount.
    – Reduction of coverage level.
    – Please refer to the compensation Chargeback Schedule Table
  • ProtectorLife rider charge back for reduction in face amount during the first two policy years.
  • There will be no compensation chargebacks on a decrease on a Universal Life policy.
  • Compensation will be paid on substandard extra premiums at the policy compensation percentages except as follows. No first year compensation will be paid on policies for:
    – Any portion of a mortality table extra premium which is in excess of a table F (250%) extra premium; and
    – any extra premium imposed on a term policy.
  • Automatic Conversion Rider (ACR) – Each conversion under the ACR rider will generate a commission payment at the First Year Commission rate.

*  LSW SecurePlus Provider, LSW Harbor 07, LSW Income Builder, LSW LifeCycle Solution and LSW FlexLife feature lifetime  rolling target premiums for base  policy and riders and follow  the base   schedule above when BSB Rider is NOT used. Premium is characterized as Target Premium (TP) or Target, which is subject to one set of commission rates, or Excess premium, which is subject to a different set of commission rates.  The characterization of a premium as Target or Excess considers premiums received during the entire lifetime of the policy. As an example, if a policy has a TP of $10,000, the first $10,000 of premium, measured over the lifetime of the policy, is characterized as Target, regardless of the policy year in which it is received. Any premium paid in excess of $10,000, measured over the lifetime of the policy, is characterized as Excess, regardless of the policy year in which it is received.

** BSB Rider – The  Up to Target (TP) Years 1-6 represents the target premium multiplier.  Target premium multiplied by target premium multiplier multiplied by contract level (or override percentage) equals first year commission. This rider is only available on LSW SecurePlus Paragon, LSW FlexLife, LSW Horizon 07 and LSW LifeCycle Solution.

*** Riders Commissionable:

ADB – Accidental Death Benefit Rider

CTR – Children Term Rider DI – Disability Income Rider OIR – Other Insured Rider

GIR – Guarantee Insurer Rider

WP – Waiver of Premium

SPR – Survivor Protection Rider (only available on LifeCycle Solution)

Commission Schedule Addendum Life Insurance Company of the Southwest (LSW)

Large Case Compensation
Compensation Not Determined by Commission Schedules

This provision shall take precedence over and supersede any and all compensation schedule(s) attached to or made a part of any and all existing Agent’s, Producer’s, General Agent’s, Marketing General Agent’s, Independent Marketing Organization’s or any other contracts previously published.

Upon the issuance of a large premium policy(ies) as exclusively determined by Insurers on a case by case basis the following guidelines will apply:

  1. Life insurance – Not premium Financed
    a. On life insurance policies with annualized Commissionable Target Premium or Premium (CTP or Premium) of $50,000.00 up to $500,000.00, all compensation, including first year commissions, are subject to the following requirements: (1) validation that the premium check has cleared the payee’s bank; (2) verification by National Life Insurance Company and Life Insurance Company of the Southwest, (Insurers) home office of a valid signed delivery receipt and delivery requirements; (3) expiration of the applicable free-look period.
    b. Once these conditions have been met, producer compensation on large cases shall be paid in accordance with the following schedule: (i) 50% of the producer compensation will be paid ‘as earned’ during the first policy year, and (ii) 50% of the producer compensation will be paid after receipt of the first annual renewal Target Premium (TP) or Premium by the home office. If the first complete renewal TP or Premium is other than annual mode, the Insurer shall determine when and in what amount producer compensation shall be paid. A large case is one in which the total first year CTP or Premium on the same insured, whether for one policy or more, is in excess of $50,000 of TP or Premium in the aggregate (if applicable). Aggregated life insurance policy purchases which equal or exceed $50,000.00 will be made retroactive to the first dollar of TP or Premium (commission reduction is on the entire amount). Subsequent premiums may result in a chargeback if such premium causes the aggregate premium to exceed $50,000 premium.
    c. For life insurance policies with an annualized TP or Premium greater than $500,000.00, Insurers shall determine compensation payable on a case by case basis, but in no event shall such compensation exceed the allowable limits as prescribed by regulatory authorities.
    d. Once conditions have been met, applicable commissions will be released on the next regularly scheduled commission pay cycle.
  2. Life insurance – Premium Financed Commission schedules are available upon request from the OPES Home Office to those approved by Insurers to submit Premium Financed business. Payment will be subject to the same requirements as for non-premium financed business see Section 1 above.

IM-L6 (0710) Commission grid is not an approval listing. Please consult the LSW website for product availability

Option A

Universal Life Products (Ages 0-85) Up to Target (TP) Excess Years 1-10
LSW FlexLife* 78.00% 0.20%
LSW Horizon* 56.00% 0.15%
SecurePlus Paragon* 56.00% 0.15%
LSWSecurePlus Provider* 56.00% 0.15%
LSW Income Builder* 56.00% 0.15%
LSW LifeCycle Solution* 56.00% 0.15%
LSW Harbor 07* 50.00% 0.20%
Universal Life Products (Ages 0-85) Up to Target (TP) Excess Years 1-10
LSWSecurePlus Advantage 79 50.00% 0.20%
LSW Foundation 50.00% 0.20%
Term Life Products Up to Target (TP) Excess Years 1-10
LSW Level Term 10 and 15 35.00% 0.20%
LSW Level Term 20 and 30 43.00% 0.20%
Riders Up to Target (TP) Years 1-6 Excess Years 1-1
Balanced Sheet Benefit Rider ** 11.20% 0.20%
First Year Renewal Year 2
Automatic Conversion Rider 50.00% 0.10%
CSPAR Rider 0.78% N/A
Commissionable Riders *** 47.00% N/A
Universal Life Products (Ages 0-85) Renewals Years 2-10 Renewal/Excess Service Fees Years 11+
LSW FlexLife* 0.15% N/A
LSW Horizon* 0.10% N/A
SecurePlus Paragon* 0.10% N/A
LSWSecurePlus Provider* 0.10% N/A
LSW Income Builder* 0.10% N/A
LSW LifeCycle Sloution* 0.10% N/A
LSW Harbor 07* 0.15% N/A
Universal Life Products (Ages 0-85) Renewals Years 2-10 Renewal/Excess Service Fees Years 11+
LSWSecurePlus Advantage 79 0.15% N/A
LSW Foundation 0.15% N/A
Term Life Products Renewals Years 2-10 Renewal/Excess Service Fees Years 11+
LSW Level Term 10 and 15 0.15% N/A
LSW Level Term 20 and 30 0.15% N/A
Riders Renewals Years 2-10 Renewal/Excess Service Fees Years 11+
Balanced Sheet Benefit Rider ** 0.15% N/A
Renewal Years 3-10+ Renewal/Excess Service Fees Years 11+
Automatic Conversion Rider 0.05% N/A
Commissionable Riders *** N/A N/A
Chargeback Schedule Table*
Months %
 1-13 100%
14+ 0%

*  Chargeback will occur based on client death, policy returned during free look or any other reason that may cause the policy to lapse, cancel or end.