The Commission Model, Explained
Here’s how it works:
- You pay $6,000 for your insurance policy
- The broker receives $1,200 to $1,800 in commission (usually 20–30%) from the insure
- In some cases, they get bonuses or overrides for placing more business with that insurer
This creates a potential conflict of interest: Should they recommend the policy that’s best for you — or the one that pays them more?
At Luma, You Choose
We believe the way your broker is paid shouldn’t be a mystery. So we offer you two clear options:
Commission Model
(Industry Standard)
• We earn a commission from the insurer
• We tell you exactly how much we’re paid — before you commit
Fixed-Fee Advice
• You pay us a set fee, agreed upfront
• We rebate any commission to you, or reduce your premium if the insurer allows it
• Our advice is completely independent of what any insurer offers to pay us
Why This Matters
In insurance, the best policy isn’t always the most expensive one. But in a commission-based world, that’s often what gets recommended.
By giving you the choice — and total transparency — Luma puts the power back in your hands.
Want to know how your current broker is paid and what you’re really getting?