How Heirstead agents are actually paid.
Commission-based income, explained plainly — how a writing commission works, what the initial advance means, how contract levels and renewals fit together, and what the calculator below can and can't tell you.
Independent contractor · Commission-based · No guaranteed income · Results vary
Six terms, not one number
Standard new agents start at an 80% contract level. An experienced licensed agent moving from another agency or IMO may be individually reviewed for a different starting level. Advancement may reach a 145% base maximum over time, but it is not automatic and not guaranteed. Commissions are typically paid after a policy is placed in force. Renewal and override opportunities are conditional on carrier contracts, vesting, and persistency. Writing commission is possible on any of Heirstead's 40+ life insurance and annuity carriers, including A- and A+ rated companies — carrier and product availability varies by state, appointment, and client need. No income is guaranteed.
- Contract Level
- The percentage of annual premium your writing commission is based on. Standard start: 80%. Conditional maximum: 145%.
- Advance
- The portion of your first-year commission paid up front — in this model, the first nine months' worth, when a policy is placed in force.
- Placement
- The share of submitted business that is actually issued and put in force by the carrier. Not the same as a chargeback.
- Renewal
- A smaller commission paid in later years a policy stays in force — commonly around 2–5% of premium, subject to vesting and persistency.
- Override
- A separate commission an eligible Agency Builder may earn on a team's production — it does not reduce the writing agent's own commission.
- Bonus
- Additional carrier or IMO incentives that exist separately from the base contract level. Not modeled in the figures on this page.
Commission structure, explained simply
A writing commission is a percentage of the policy's annual premium, paid when the policy is placed in force:
Annual premium × contract level = potential first-year writing commission
Initial Nine-Month Advance
Rather than paying the full first-year commission at once, carriers commonly advance the first nine months' worth when the policy is placed in force. This is the estimated initial advance.
Potential Months 10–12
The remaining three months of first-year commission are not advanced — they are paid later, as earned, provided the policy remains in force. Some of these payments may land in the following calendar year.
Renewal Commissions
In the years after, a smaller renewal commission (commonly 2–5% of premium) may be paid automatically for as long as the policy stays in force, subject to carrier vesting and persistency rules.
$1,500 average annual premium × 80% contract level — illustrative only, assumes the policy remains in force.
$1,200 is not cash received immediately — it is the combined total of the $900 initial advance and the $300 in potential months 10–12 compensation, which is paid later, as earned.
See how activity and placement change the estimate
Three steps: the activity you're estimating, the standard assumptions behind the math, and what that combination could generate. Every number is visible and adjustable — this illustrates a formula, it does not predict or promise your actual income.
Step 2
Standard assumptions in use: 80% placement · 80% starting contract · $1,500 average annual premium · 3% illustrative renewal
Step 3
Your Estimate
Paid when a policy is placed in force — this is not the full first-year figure.
Optional · Conditional · Year 2
Illustrative only. Actual income is not guaranteed.
Start Your Application →From 80% to a possible maximum
Every standard new agent starts at an 80% contract level. An experienced licensed agent moving from another agency or IMO may receive a different starting level following an individual review — that is not automatic for every licensed agent.
145% is a legitimate maximum base contract level, separate from any IMO or carrier bonus. Advancement toward it depends on applicable requirements and performance over time — there is no fixed promotion schedule and no promised timeline to reach any level. Additional bonus opportunities may exist separately from the base contract level; this page does not model or promote specific bonus figures.
Renewals and book building
Unlike a salary or hourly job, insurance income can compound — a policy placed today may continue paying a smaller renewal commission in later years, for as long as it stays in force.
Building Your Foundation
First-year commissions from new business. Every policy placed adds to your potential renewal base for years to come.
Renewals Begin
New business commissions plus any Year 1 renewal income, subject to carrier vesting and persistency rules.
A Long-Term Asset
Agents may build a book of business and may earn renewal commissions, subject to carrier contracts, vesting, persistency, and applicable agreements.
Renewal commissions commonly range approximately 2–5% of premium, depending on carrier and product. Renewals are never guaranteed.
How override commissions work
A writing agent always keeps their own contracted commission in full. Eligible agency builders may separately earn override commissions based on the applicable spread between contract levels on qualifying team production. Overrides vary by carrier, product, placement, persistency, contract terms, and organizational structure — advancement and override income are not guaranteed.
See a simplified, hypothetical override illustration
Hypothetical only — not a promise, not a typical result. If a builder is contracted at 100% and a team member they support is contracted at 80%, the builder may be eligible for an override on that team member's production based on the 20-point spread between the two contract levels, subject to the carrier's own rules. The team member's own 80% commission is unaffected either way.
How activity and structure change the picture
These are illustrations, not averages, typical results, or guarantees. All four use the same $1,500 average annual premium assumption — they differ by activity, placement, contract level, team structure, and eligible overrides, not by a hidden change in case size. Each commission figure uses the same formula as the calculator above: submitted policies × 12 × placement × premium × contract level.
| Illustration | Submitted / Month | Placement | Contract Level | Est. Total Potential First-Year Commission | Eligible Override Potential |
|---|---|---|---|---|---|
| Part Time 5–10 hrs/week | 2–3 | 80% | 80% | $23,040–$34,560 | N/A — writing agent only |
| Full Time 40 hrs/week | 8–12 | 80% | 80% | $92,160–$138,240 | N/A — writing agent only |
| High Producer Focused, full-time | 15–20 | 85% | 100% | $229,500–$306,000 | N/A — writing agent only |
| Agency Builder Personal production + team | 8–12 personal | 80% | 100% | $115,200–$172,800 | Illustrative potential only, exceptional not typical — see disclosure below |
*Illustrative projections only, using a consistent $1,500 average annual premium. The High Producer and Agency Builder rows illustrate a 100% contract level for comparison purposes only — advancement above the standard 80% starting level is not automatic or guaranteed. Actual compensation varies based on production, placement, persistency, product mix, contract advancement, and market conditions. Not a guarantee.
Expenses and lead support
Agent Business Expenses
Independent agents are responsible for ordinary business expenses, which may include E&O insurance, licensing in additional states, CRM or technology costs, lead generation, and marketing. Heirstead provides systems, guidance, and operational support to help agents use those resources effectively.
Lead Support
Heirstead provides new agents with lead support, access to exclusive lead opportunities, and systems designed to support consistent conversations with prospective clients. Lead sources and cost arrangements vary by the agent's circumstances and are discussed individually. The system creates opportunity; results still depend on how consistently and effectively the agent applies it.
How placement and chargebacks work
Placement is the share of submitted business that is actually issued and placed in force by the carrier — it is not the same thing as a chargeback. Persistency describes how long a placed policy stays in force, which affects both renewal income and chargeback exposure.
Frequently asked compensation questions
Is this salaried employment?
What contract level do new agents start at?
When are commissions generally paid?
What is a nine-month advance?
What happens in months 10–12?
What are chargebacks?
Are renewals guaranteed?
How do Agency Builder overrides work?
Are leads or business expenses provided?
Understand it first. Then apply.
Commission-based, independent-contractor income — with the mechanics laid out plainly instead of a single headline number.
Independent contractor · Commission-based · No guaranteed income