There are a lot of questions about the VP Bonus: How does it work? Is it real? When does it pay? We’ll go through how it works in this post.
The first thing to understand is the bonus is NOT paid on your entire IP volume. It is paid on your BONUSABLE premium. Here’s the link so you can break that down for yourself: http://hemati.com/leadership/ (FFL has since added Prosperity and Transamerica to the bonus)
So let’s use my September numbers here as an example:
100% of Americo = $666,988
+ 75% of Aetna = $207,623
+ 75% of MOO = $313,113
+ 75% of Hancock = $45,807
+ 75% of AMAM = $47,932
+ 75% of Prosperity = $37,354
+ 75% of Transamerica = $25,535
+ 100% of GAFG = $0
+ 2.5% of Athene = $19,477
= $1,363,829 in Bonusable Premium
Next they will check my first (biggest) leg percentage. My biggest leg did $902,637. Because that’s not more than 50% (whew!), I still get to count 100% of that volume – so my Bonusable Premium remains $1,363,829.
That leg happens to also be at the 145 comp level so they give me an extra 1% bonus on that volume = $9,026.
My Bonusable Premium of $1,363,829 qualifies for a 4% bonus = $54,553 + the 1% from the 145 leg = $63,579.
That Bonus could be reduced based on my persistency or by my Americo percentage. Americo was 37% of my total volume, so FFL only has to pay 70% of the bonus = $44,505.
The payouts typically arrive in your account two months behind production.