Compensation

Earn-out Period

An earn-out period is the time over which advanced commission is considered fully earned. If the policy ends inside this period, a chargeback may apply to the unearned part.

Why it matters

Many carriers use a period of up to a year for life policies, with the chargeback shrinking each month. It varies by carrier and product. Knowing each carrier's period helps an agent plan cash flow and prioritize follow-up on newer policies. The shorter the period, the sooner the commission is safe from chargebacks.

Source: blog.pia.org

Read next, for agentsLife insurance chargebacks explained: how they work and how to protect your cash flow

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