Compensation for voluntary 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, enrollment and policy accounting. Renewal and service fees are lower in subsequent years. For comparison purposes, an approximate average of total compensation for this product over the time a policy remains in force would be about 22% of premium each year. Some brokers may also choose to partner with a professional enrollment firm to enroll and service some of the products they offer, resulting in a split-compensation arrangement.
Unum also offers a variety of other supplemental compensation programs for our brokers. These supplemental compensation programs are typically based on criteria such as the volume of new sales, size of the brokers in force block and persistency and usually range from 0-10% of premium. Your broker can provide additional information about the programs in which he or she participates that might generate additional compensation. In addition, Unum has marketing agreements with a number of national business partners. If your broker is affiliated with one of these partners, compensation levels may vary.