Free tool for independent agents
Life Insurance Commission Calculator
See what a policy pays you, how much of your advance you've actually earned, and how much is still open to chargeback.
The policy
What you get paid
Your advance is fully earned once the client has paid 9 months. Until then, part of it can be charged back.
How much is still at risk?
An advance is paid before it is earned. Whatever hasn't been earned yet is what the carrier can take back if the policy stops paying.
4 months
- You've earned
- $540.00
- Carrier takes back
- $675.00
You were advanced $1,215.00. After 4 months of premium you've earned $540.00 of it, so about $675.00 comes back out, usually from your next commission check.
| Month | Earned so far | Still at risk |
|---|---|---|
| 1 | $135.00 | $1,080.00 |
| 2 | $270.00 | $945.00 |
| 3 | $405.00 | $810.00 |
| 4 | $540.00 | $675.00 |
| 5 | $675.00 | $540.00 |
| 6 | $810.00 | $405.00 |
| 7 | $945.00 | $270.00 |
| 8 | $1,080.00 | $135.00 |
| 9 | $1,215.00 | $0.00 |
| 10 | $1,350.00 | $0.00 |
| 11 | $1,485.00 | $0.00 |
| 12 | $1,620.00 | $0.00 |
What these numbers mean.
An advance
The carrier pays you most of your first-year commission the moment the policy goes into force, before the client has paid for the year. It is a loan against future premium, not a bonus.
Earning it back
Each month the client pays, another slice of that advance becomes truly yours. Until it is all earned, the rest is still the carrier's money sitting in your bank account.
A chargeback
The carrier takes the unearned part back, usually out of your next commission check, when the policy lapses, is cancelled, or is never taken out.
Frequently asked questions
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