Life Insurance Agent Commissions and Policy Design

Life Insurance Agent Commission and Whole Life Policy Design, with Rodney Mogen

Not all whole life policies are designed equally.  Some that show up better on an illustration actually have a higher risk.   Rodney Mogen came back on the show to continue the conversation about life insurance agent commission and whole life policy splits.  

We address the “Fear, Uncertainty, and Doubt” in the IBC world around policy splits. We answer questions about illustrations, changing dividends, agent commissions, effects on the death benefit, and policy tax status.

Check out the first conversation here: 10/90 Premium Split & Blended PUA Rider Risks, with Rodney Mogen

Life Insurance Agent Commission

Why are we talking about life insurance agent commission? Because some people think that agents design policies based on how they are compensated. There are agents telling people that a 10/90 premium is the only one right way to design policies. According to them, anything else is just trying to earn a higher commission.

We design policies based on the client’s unique situation, versus using a cookie-cutter approach and designing all polices the same. It’s important to have an abundance mindset when looking for the best life insurance companies to work with. We believe compensation is a good thing and should be based on the amount of value you receive.

If someone bases their entire agency on the 10/90 split, then they are running their business based on volume. This approach is very similar to Walmart. There is absolutely nothing wrong with serving as many people as possible. The question is, how much value and time do you think you will get from that advisor?

Your agent’s commission should be the last thing in the agent’s mind and your mind when putting individualized strategies and recommendations in place.

Get Started with Privatized Banking

There is not a one-size-fits all policy design for everyone.

If you would like to find out exactly what policy will best help you accomplish your goals, book a call with our advisor team

We’ll get to know you, learn your objectives, and consider your complete financial picture before recommending strategies for your unique situation.


Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

Rachel Marshall

Rachel Marshall is the Co-Founder and Chief Financial Educator of The Money Advantage and President of Marshall's Insurance and Financial Services. She is known for making money simple, fun, and doable. Rachel has built a team of licensed professionals (investment advisors, insurance agents, attorneys, tax strategists) to help her clients create time and money freedom with cash flow strategies, Privatized Banking, and alternative investments. Rachel is the co-host of The Money Advantage podcast, the popular business and personal finance show. She teaches how to keep more of the money you make, protect it, and turn it into cash-flowing assets.
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