# Understand Life Compensation & Our Philosophy At White Swan, transparency isn't just a buzzword; it's an integral part of our compensation philosophy. We believe in an open dialogue about earnings, ensuring our partners are always informed and empowered. Just as the saying goes, "a rising tide lifts all boats," we aim to elevate the entire industry by fostering a collaborative and transparent environment. By sharing the benefits of our growth and success, we ensure that our partners thrive alongside us. **Forms of Compensation in Life Insurance Distribution:** In the life insurance industry, compensation from carriers to distributors typically manifests in three forms: * **Commissions:** The most commonly mentioned and shared compensation component, which is typically paid as premiums are received during the first year of the policy. White Swan shares this component with partners. * **Overrides:** This compensation component is seldomly mentioned or shared by life insurance providers, and is generally smaller than the commission, but can still be meaningful. In contrast to other providers who may not share the override, White Swan do share the override with partners. * **Trails:** These are lower compensations that may (or may not) be paid in years following the initial one. It's worth noting that the difference between the trail and the combined commission plus override can be substantial, with the trail being as little as 1/50th or less of the first year's compensation. In consideration of the relatively small size of the trails and the operational requirements White Swan has in helping clients through the lifetime of their policy, we generally do not share this component with Partners. These components are generally calculated as a percentage of what is called the target premium, which is similar to the premium that is paid on the policy, but may be lower or higher depending on the type of policy and its design. **Negotiated Contracts with Carriers:** We've successfully negotiated highly competitive contracts with carriers who are keen to support our mission of digitizing the industry. These favorable terms are not just for us; we pass on these earnings to our partners, ensuring they benefit from our collaborative efforts. Bear in mind that compensation levels differs across different carriers and products, and that we are continuously working to improve the payout rates for us and our partners. **Compensation Sharing Structure:** * **Tailored Agreements:** Every partnership is unique, and while we do offer a boilerplate compensation sharing agreement we can also negotiate compensation agreements on a case-by-case basis during the [Earnings Activation Process](https://docs.whiteswan.io/partner-knowledge-base/platform-overview/earnings/activating-earnings). * **Tiered Payouts:** Our compensation sharing agreements are generally tiered, with payout levels that amplify with increased volume. This ensures that as our partners grow, so does their earning potential. * **Referral Benefits:** Our partners can generally earn an additional percentage on earnings from any end-users brought in by other partners they've referred to White Swan. **Regulatory Considerations:** Compensation sharing in the life insurance sector is regulated, which is why variable compensation sharing structures come with [Licensing Considerations](https://docs.whiteswan.io/partner-knowledge-base/platform-overview/earnings/licensing-considerations) that requires partners to carry licenses. To ensure partners get rewarded when referring end-users even when they don't carry the appropriate licenses, our compensation agreements generally contain a fixed incentive for cases where the partner isn't licensed, covering all products except for variable universal life and private placement life. To maximize potential earnings for partners, we generally recommend partners to get licensed, and can refer partners to providers which can help them manage licensing. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.whiteswan.io/partner-knowledge-base/platform-overview/earnings/understand-life-compensation-and-our-philosophy.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.