Growth Snapshot

The Centers for Medicare and Medicaid Services (CMS) set the maximum amount insurance companies can pay insurance agents.  Insurance companies can pay less, but not more.  CMS allows insurance companies to pay up to $678 per eligible Medicare persons for their initial year.  That is usually the month that the person turns 65 years of age (T-65).  It could also be the month they receive their Part B-Medical coverage.  You may delay taking your Part B if you continue to work and have credible health care or have coverage through a spouse.

CMS allows insurance companies to pay $339 per Medicare eligible persons for their renewal years.  Renewal years is when you build your book of business.  If your clients remain on the same plan that they originally chose with you, you continue to receive payments for each of those clients each year they are signed up for the insurance plan.  If the client changes the plan with you, you receive the renewal payment with the new plan.  However, if the client switches plans with another insurance broker, you lose your commission and the new broker receives that commission.  Therefore, it is imperative to maintain a personal dialogue with your clients.  Your "Book of Business" determines your financial success.

Following are commission examples from Aetna Coventry T-65 clients and beginning with signing only 50 new clients the first year, and each year thereafter, while retaining your client base:

• Payment - $678
• Lump payment of $339 and $28.25 per month for each client in your Book of Business.
• A policy sold in January results in a total of $339 combined monthly commissions for the year, whereas a policy sold in July would yield a combined monthly commission of $169.50 for the year.
• $33,900 yearly earnings in  2022 with 50 clients
• $50,850 yearly earnings in  2023 with 100 clients (33,900 base + 16,950 renewals)
• $67,800 yearly earnings in  2024 with 150 clients (33,900 base + 33,900 renewals)
• $84,750 yearly earnings in  2025 with 200 clients (33,900 base + 50,850 renewals)
• $101,700 yearly earnings in 2026 with 250 clients (33,900 base + 67,800 renewals)
• $118,650 yearly earnings in 2027 with 300 clients (33,900 base + 84,750 renewals)
• $135,600 yearly earnings in 2028 with 350 clients (33,900 base + 101,700 renewals)

I have worked this business for fifteen years and have over 1,803 clients.  This opportunity is available to you also.  Let me guide you in building your Book of Business.

My personal Book of Business growth and income:

Year         # of Clients     Gross Income      Net Income

2008          22                    8,800                     6,160

2009          46                   13,000                    9,660

2010           126                  37,800                  26,460

2011            258                 77,400                   54,180

2012           370                 111,000                  77,700

2013           499                124,750                   87,325

2014           715                 149,003                   86,475

2015           910                 218,464                  157,983

2016           1072               232,376                  172,363

2017           1062               263,334                 202,919

2018           1164               359,596                  280,471

2019           1280              370,889                 289,293

2020          1405              436,825                    316,811

2021           1543               491,554                  344,087

2022          1803              544,460                  408,345

2023          1595               585,579                  439,184