Have you thought about adding more health insurance plans to your portfolio, but don’t know if it would be worth the time and effort? We’ll tell you what broker commissions for ancillary products look like so you can make an informed decision.
Cross-selling is a natural way to increase your earnings. Let’s look at the details for agent compensation for ancillary health insurance sales.
How Do Ancillary Insurance Commissions Work?
You might not think that offering ancillary products can greatly affect your overall commissions. By selling ancillary products to an existing client, you can increase your commissions 30 to 200 percent, or even more, depending on the products you sell.
Ancillary products are a percentage of the annual premium. Some carriers pay a large upfront commission with smaller residual commissions and others pay lower-level commissions for the life of the policy.
Here’s what you could potentially earn for the first year of a new policy:
- Up to 50 percent on dental and vision
- 15 percent for accidental death & dismemberment (AD&D) and disability
- 100 percent or more on final expense life insurance policies
What Affects Ancillary Commissions?
The amount you earn from ancillary sales will vary based on how you sell the products and what products you sell.
If a product is co-brokered, then you’d split commissions with the agent you’re working with. You may also be able to earn a bonus or added reward from an insurer or administrator based on your total calendar-year sales, enrollment numbers, the sale of a product during a specific period, or when bundling products together. There’s no limit to how much you can earn, and adding ancillary products can help you increase your commission numbers!
How Much Can Agent Earn Selling Ancillary Plans?
Let’s give you an idea of the potential commissions you can earn by selling various types of ancillary plans.
Kelly, an independent insurance agent in Pennsylvania, is meeting with a client that also wants to add dental insurance in addition to their Med Supp and PDP. With a commission of 30 percent on a $633 dental policy annual premium, Kelly could earn around $190 more in commissions during the year for just one client!
If Kelly sells a dental plan to 60 more clients, she will increase her yearly commissions by $11,400.
Many of your clients may not have any life insurance in place or a plan to pay for their final expenses and funeral. With a commission of 100 percent of the annual premium, if Kelly were to sell a final expense plan with that costs $600 a year to one client per month, she could earn an additional $7,200 per year. That’s only 12 policies!
Check out The Guide to Making Money Selling Health Insurance to see what else you can earn by cross-selling!
Ancillary Commissions with FMOs
Field marketing organizations (FMOs) use a hierarchy system to organize agents, but they generally offer the same commission level to general agents that they’d receive directly from the carrier. The commissions you’d get with a great FMO are the same you’d get without one. And with an FMO, you’re also getting a full support staff and various other perks.
At Ritter, we aim to be a one-stop shop for all your, and your clients’, health insurance needs. We want to help agents. We offer a wide variety of competitive contracts with dental, vision, hearing, hospital indemnity, cancer, heart attack, stroke, critical illness, long-term care, short-term care, and accident insurance carriers. Ritter pays agents their fair share of commissions, and we want to help you make even more!
Ritter has a dedicated More than Medicare Sales team committed to supporting you throughout your ancillary journey. Register with our site to gain free access to our full library of tools and resources, and then, get in touch with your sales specialist to start earning more selling ancillary insurance!
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