6 minute read
Commission Solutions
By Phil Calhoun
As we close out the year 2025, I want to say how thankful our planning team is to have touched so many people. Many Cal Broker subscribers have loved ones who have, and continue, to benefit from proper commission planning work. We encourage more active health brokers to consider the advantages of proven and proper commission planning work. The impact of no planning is extremely difficult to see and impossible to experience first-hand. "Our goal is to work together to move brokers from 100 percent at risk to a plan to protect commissions in all life events."
The Definition Of A Proven Commission Plan:
A Commission Protection Plan needs to line out all of your required deal points including what is the payout amount and over what time period will you be paid, which lines of insurance are included, and who will be responsible for retaining clients and paying out the agreed upon payments. An active broker needs to place high importance on working with a Successor who has the skills and experience to do the required work that leads to high retention of clients and commissions. Experience with the carrier commission transfer paperwork and using a legally binding agreement are also high on the importance list.
Carrier Agent Representatives
When professionals work with professionals, we call it collaboration. Finding an expert to work with is helpful, especially when the need to find a solution is so important. Professionals working with health brokers to assist them to build and retain their clients is a great example of collaboration. Carrier representatives are critically helpful to brokers and are such a valuable relationship. When an active broker needs commission planning work, carrier reps often introduce their broker partners to subject matter experts to help them solve their planning needs
General Agent and FMOs
We consulted on several actual cases this year where we worked to place commission protection plans between agency owners and subagents. The owners either acquired the subagents book of business or enabled their subagents to continue to stay active with a protection plan as their successor. Our services include the formal legal agreement developed with our attorney and CPA which has lasted the test of time (with updates as needed over 12 years), the commission transfer process for all insurance carriers, and a client retention plan proven to successfully retain clients and commissions. When our consulting work is done and leads to a win-win for both parties. The amount of commissions per case justifies the competitive fees charged to bring two parties together, complete all the key deal points, document the agreement, and outline a plan to execute the arranged deal.
Successor Stories
Our focus is on helping to educate health insurance professionals on the importance and value of commission planning. We know this work is essential, and the number of brokers who have a formal plan in place is not where it needs to be. We often find brokers with over $150,000 in annual commissions, and they have no plans to protect these commissions. With no plan in place, commissions remain 100 percent at risk of loss in a life event.
Our successor stories prove this fact. When we are asked to help transfer commissions after a broker has passed, we know our success will be limited. When there is no plan in place and no time to build a plan, we know that most of the commissions will be lost. When trying to save at least a portion to provide something for surviving loved ones is the best result when no advanced planning is in place.
With no plan in place, commissions remain 100 percent at risk of loss in a life event.
When a plan is in place, it is a gift to their loved ones who can now focus on the moments and memories of the deceased and not have to concern themselves with a loss of this income. With a professionally designed commission protection plan, loved ones know they will have funds coming in from the sale of the insurance commissions.All Commission Protection Plans we offer include a purchase agreement which loved ones can benefit from should the active broker pass away. When an active broker retires then passes away, and their purchase agreement includes a payout over time, loved ones will be paid out the balance of the payout period. Survivors find this to be such a powerful gift.
Survivors Success Stories Click Here To Watch
Planning Requires Time — Finish AEP and Open Enrollment Strong
For the next several weeks, most health insurance professionals are occupied with the business of renewing clients and adding new businesses. The best time for planning is in the month of January each year. Take some time to enjoy friends and family, share the gifts of your hard work, smiles, laughter, and hugs.
Begin Your Planning in January. Action Steps:
View recorded information on commission planning: Click Here to Watch
Set a 15-minute call to get your planning questions answered
Request our book: “The Health Brokers Guide: How to Protect, Grow, and Sell Commissions”
From group health to Medicare our comprehensive commission planning work has continued commissions for loved ones during and after the broker passes.
Learn how to be a Successor/Buyer and access our resources and process to do proven commission planning work so many active brokers need.
Successor Buyer Program Click Here To Watch
To learn more about commission planning options go to: www.commission.solutions
Phil Calhoun is the owner and publisher of California Broker Media, and he owns Integrity Advisors, a health insurance agency. Phil started Commission Solutions to provide coaching for health insurance professionals on how to protect, grow and sell health commissions. Phil is an active member of several insurance associations including the California Association of Health Insurance Professionals (CAHIP) and local chapters in Orange County, Los Angeles, San Diego and Inland Empire Health Insurance Professionals. He serves on board for the Exit Planning Institute.
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