Final Expense Commission Levels Explained (110%, Advances and Chargebacks)

October 18, 2026 · FEX Agent Contracting

When you see “up to 110%” on a final expense contract, it refers to first-year commission as a percentage of the policy’s annual premium.

A simple example

Say a client buys a policy with a $50 monthly premium. The annual premium is $600. At a 110% level, first-year commission on that policy would be $660. This is only an illustration. Actual levels vary by carrier, product, issue age and contract level.

Advances vs. as-earned

Many carriers advance part of the first-year commission when the policy is issued, instead of paying it month by month. Advances help cash flow, but they are not fully earned until the client keeps paying.

How chargebacks work

If a policy lapses or is canceled before the advance is earned, the carrier takes back the unearned part. That is a chargeback. Unpaid chargebacks become a debit balance, which can show up on future contracting checks.

Protect your commissions

• Set draft dates that match when the client gets paid.
• Confirm the bank account and the first draft with the client.
• Call clients after delivery and again before the first draft.
• Place each client in the right underwriting tier from the start.

Why your contract level matters

The same sale pays differently at different contract levels. Street-level contracts put you at the top level available to us, and you own your book, subject to each carrier’s agreement.