PL A N N I N G
How Succession Planning Works for Health Brokers
Make 2024 the year you put your plan in place
By Phil Calhoun
The core of our business is to help active brokers protect, grow and sell their health commissions. We are aware of the models available from large agencies that require a commission split while you move to retirement over time. While this model can work, it often comes with multiyear requirements. When these requirements are not met, in the end it can end up in a divorce — leaving you looking for another partner/program or sending you back to where you began and wanted to move from. The best practice in my experience is to start with a plan to protect your commissions while you remain active. Any plan you put in writing needs to include details you need to address:
Introduction
1. 2. 3. 4.
What you are paid while active (many options here) How you get paid when you retire or die Your payout details which you and your designated successor agree is a fair amount Who you select to be paid at your death
Background ALL business owners who have a succession plan work with experts from legal, tax and financial planning areas. Health insurance professionals will also benefit from working with experts to develop a plan for their business. CalBrokerMag.com
CALIFORNIA BROKER | 45
