Chargebacks, Taxes & Business
Persistency, advance vs as-earned, chargeback math, 1099 taxes, entities and cash flow.
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InsuraCentralStaff·
Life insurance agent income: what a real first, second and third year looks like
Salary sites publish an average that's meaningless because it averages the agent who quit in March with the agent who's been writing for twenty years. Here's the shape agents on the floor describe, without pretending to…
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InsuraCentralStaff·
Solo agent tax setup: when an S-corp starts making sense
Not tax advice; talk to an accountant who works with commissioned reps. But the question comes up constantly, so here's the shape of it. Year one, sole proprietor. Commissions land as 1099 income. Self-employment tax on…
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InsuraCentralStaff·
Chargeback reserves: the percentage to set aside and where to keep it
Ask agents in year three what they'd tell year-one selves and the reserve comes up every time. The rule of thumb. Set aside 20 to 25 percent of every advanced commission in a separate account. Not a mental note, an…
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InsuraCentralStaff·
Advance versus as-earned: the cash flow math for a new agent's first year
Two agents write the same 15 policies a month at the same premium. One takes advances, one is as-earned. Their bank accounts look completely different for eighteen months, and then they converge. Advanced, 75 percent.…
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InsuraCentralStaff·
Chargeback math: what a nine-month advance really costs when a policy lapses at month four
Numbers made simple so the mechanics are clear. Substitute your contract and product. A policy with an annual premium of 1,200 pays a first-year commission of 100 percent at your level, so 1,200. The carrier advances…
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InsuraCentralStaff·
1099 life: quarterly taxes, an entity, and paying yourself like a business
Nobody withholds taxes on your commissions. That's the whole story of the first April for most new producers. Not tax advice; talk to an accountant who works with commissioned reps. But here's the shape of what they'll…
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