Compensation Plan

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American Family Financial Association

  

COMPENSATION AND RULES FOR AFFA

  

Anyone can join AFFA but you must have an insurance license to receive commissions for insurance sales and overrides. The membership fee is 12.00 annually. Agents will have a 70% life insurance contract and a 20% contract on health insurance, both contracts are as earn. All overrides on group volume are paid out monthly for twelve months. The commissions are based on a point system; you need 300 points to quality for overrides on your group. The point values are as follow, each dollar of life insurance premium equals one point and each dollar of health insurance premium equals .25 points. Members can sell 300 points of business or purchase insurance on themselves to quality for overrides. If someone starts with their 300 points and at some time in the future lose their 300 points then they would lose their overrides as well. They would have three months to reinstate their 300 points and to start receiving overrides again on their group. If anyone loses their insurance license for any reason it is the responsibility of the member to notify AFFA of this fact. All commissions and overrides will cease until members license is restored. The term that we will use for a member’s position in AFFA is, “business center”. Each business center will have their own separate license from all other business centers. All overrides to business centers will be paid from AFFA as a direct marketing override bonus.

 

EACH LEG OF BUSINESS CENTER

 

Group volumes are calculated by the number of new points that hit your group each month and will pay out for twelve months. Each leg of a business center can receive up to 145,000 points in overrides at 5%. The next level goes to 11 million in monthly points. So volume points from 145,000 to 1,000,000 will be paid at .02. From this point to infinity your overrides are .0001.