---
title: "What Is Production Bonus? Definition | Epic Life Glossary"
description: "A production bonus is extra pay for reaching a set amount of sales or premium within a stated period. Carriers and agencies use it to reward volume."
url: https://epicline.preview.multisites.ai/glossary/production-bonus
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Compensation

# Production Bonus

A production bonus is extra pay for reaching a set amount of sales or premium within a stated period. Carriers and agencies use it to reward volume.

## Why it matters

Targets may be based on premium, policy count, or both, over a month, quarter, or year. Payment may be reduced if policies lapse. Terms vary by carrier. Read the qualifying products, since some are excluded. Do not plan on a bonus as steady income, because carriers can change programs. Ask whether lapses reduce the payout.

Source: [law.cornell.edu](https://www.law.cornell.edu/wex/commission)

[Read next, for agentsHow do life insurance agents get paid? An honest breakdown](https://epicline.preview.multisites.ai/careers/compensation)

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