Compensation for individual products is higher in the first year to offset the broker's increased expenses resulting from the initial implementation of the policy, which include prospecting, gathering underwriting data, enrollment on multi-life cases, and policy accounting. Renewal and service fees are lower in subsequent years. For comparison purposes, an approximate average of total compensation over the time a policy remains in force would be about 12.5% of premium each year.
Your broker may also be eligible for additional renewal compensation based on total new annualized individual long term care premium written with Unum the year your policy is placed in force. This additional commission ranges from 0 5% in years 2-thru-10, and 0 3% in the 11th year and thereafter.