Agent tool
Term calculator (fully underwritten vs. simplified)
What this calculator shows
An “awesome” term contract pays 110% of premium and treats the policy fee as commissionable. A “normal” contract pays 95% after subtracting a $90 non-commissionable fee. This tool multiplies that gap across the policies you actually place, then adds the extra first-year commission you’d keep if half of the apps that currently fail underwriting were recovered with better placement — the simplified-issue advantage. Totals are educational, not a carrier quote or a promise of income.
Contract assumptions
These match the live DigitalBGA calculator. Change them if your street and fee are different.
| Commissionable fee; full premium × this rate. | % |
|---|---|
| Non-commissionable fee comes off premium first. | % |
| $ | |
| Live tool uses 50% of apps that miss underwriting. | % |
| Awesome policy | Normal policy | |
|---|---|---|
| Commissionable policy fee | Yes | No |
| Higher street commission rates | Yes (110%) | No (95%) |
| Total commission per policy | $1,980.00 | $1,624.50 |
| Difference per policy | $355.50 | |
| Difference over a year | $10,665.00 | |
| Additional business with better placement | $19,800.00 | |
- Apps that miss underwriting20
- Recovered at the awesome rate10.0
- Contract gap this year$10,665.00
- Placement lift$19,800.00
You are setting $30,465.00 on fire!!
$10,665.00 from the weaker contract, plus $19,800.00 from apps that never placed. Totals are educational — not a carrier quote.
Model lead cost and advances on the income estimator, or get contracted.
How the math works
- Awesome commission per policy = average annual premium × 110% (fee is commissionable, so it stays in the premium).
- Normal commission per policy = (average annual premium − $90) × 95%.
- Difference over a year = per-policy gap × applications that make it through underwriting.
- Additional business with better placement = 50% of the apps that don’t place, paid at the awesome rate. That is the simplified vs. fully underwritten lever: more apps become in-force premium instead of declined paperwork.
- Money on fire = yearly contract gap + additional business.
Open Contract assumptions if your street, fee, or expected recovery is different. The live DigitalBGA numbers are the defaults.
When to use it
Run this before you accept a “good enough” term contract, or when you are deciding whether a fully underwritten product is worth the extra declines. Pair it with the income estimator to fold in lead cost, conversion, placement, and advances.