For agent use only
For Advance Pay agents How “true up” works for recurring premium At the end of your Advance Pay period , Ethos compares the amount of compensation advanced to you against the actual policy, to make sure your compensation is correct. If there is a discrepancy, Ethos adjusts the difference in whatʼs called the “true up” process. This process happens on the first day of the month following your advance period. This ensures fair, accurate compensation for every agent on every sale.
Example: Bill is on 6-month Advance Pay terms with Ethos ■ On January 1, he sells an Ethos IUL policy. Six months advance pay compensation is paid promptly. ■ On July 1 — the first day of the 7th policy month — Ethos checks to see if the policy is still in force. ■ Billʼs advanced comp is compared to the correct amount he should earn on the policy by the end of the advance period, in this case June 30. Any discrepancy is “trued up” as follows: ○ If actual premium paid > planned premium for first six months: Additional true up comp released* ○ If actual premium paid < planned premium for first six months: True up chargeback processed ○ If actual premium paid = planned premium for first six months: No true up required
* Subject to planned premium not exceeding target premium for the policy
ethos.com
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