by Guest » Sat Mar 08, 2008 07:41 pm
Insurance agents can have quite a rewarding career. The commission that they earn from each policy they sell can be handsome, depending on the policy as well as the company they belong to. It is a job that requires a lot of hard work and success does not come easy. However, once you learn the ropes of the trade, there may be no limit to how much you can earn.
How much do life and health insurance agents earn?
- Life Insurance Agents: Commissions earned by agents selling life insurance can vary depending on the kind of policy sold. It may also vary from one insurer to another but in general, the insurance agent typical commissions would be around 30% - 50% in case of a term policy and 90% - 95% in whole life policy. This would be the earning in the first year. However, the earnings from premiums in the subsequent years would be much lower. The average earning then would be around 6% from whole life policies and 4% per year from term policies for as long as they last.
Some companies do not offer any fees. The only money their agent earns is from the commission he/she gets by selling a policy. Such agent may have a tendency to push a policy to the customers in order to earn more from the commissions. - Health Insurance Agents: Commissions paid on health insurance is almost 20% of the premiums for the first year and 5% for the subsequent years till the duration of the policy.
Some insurance companies may have flexible work policies while some may have very rigid ones. Not all insurance companies are like that, and if you are an independent agent, you need not be under the control of any company. However, independent insurance agent commission also centers on the number of products he/she can sell. Know more about how much insurance agents make.
Hello all,
I have decided to pursue a career as an independent ins. agent and am thinking of just focusing on health and life. I want to get to know all I can about these two lines of insurance and I am wondering if these two are a good choice to pursue as far as insurance agent commission goes. Can some one tell me what an average premium is for each of these policies and how this relates to my commission. How much do insurance agents make ? Thank you and I understand there are many variables but I am just talking about a ballpark figure. Say something like an auto policy 1000/yr and 15% new insurance agent commission, 10% renewal. TRhanks again.
I have decided to pursue a career as an independent ins. agent and am thinking of just focusing on health and life. I want to get to know all I can about these two lines of insurance and I am wondering if these two are a good choice to pursue as far as insurance agent commission goes. Can some one tell me what an average premium is for each of these policies and how this relates to my commission. How much do insurance agents make ? Thank you and I understand there are many variables but I am just talking about a ballpark figure. Say something like an auto policy 1000/yr and 15% new insurance agent commission, 10% renewal. TRhanks again.
Posted: Fri Nov 12, 2010 10:28 am Post Subject:
HARDLY FAIR!!
Although life insurance may not pay renewal commissions, auto and homeowner's both do. So not getting any renewal commission is a RIP OFF. Life insurance commissions (for cash value policies) usually starts at not less than 50% and can range to far more than 100% of the first year premium. Getting only 20% SUCKS!!
As for 8% on auto and homeowner's, consider this: the typical commission to an agent or agency for those products is about 20%-25%. So you would be giving 60% or more to the agent.
Unless you are being hired as a "solicitor" and not as an agent, these commissions are far too low. You're looking at a 40/60 split, with you on the short end. What is the agent offering to make up the difference?
If you are totally inexperienced, then I might consider it almost reasonable, but only if the agent is going to train you properly and then raise your split to at least 50/50 or 60/40 when you are capable of doing business on your own. An experienced agent would not accept less than a 75/25 split.
Posted: Mon Nov 29, 2010 09:17 pm Post Subject: STARTING MY OWN AGENCY
I NEED SOME POINTERS ON STARTING AND MAINTAING MY NEW AGENCY FOR THE FIRST YEAR. I'M EXCITED ABOUT STARTING IT, BUT STILL A LITTLE NERVOUS AT THE SAME TIME.
Posted: Tue Nov 30, 2010 02:50 am Post Subject:
Do you have any prior experience in the industry? If not, you may find it more difficult than you ever imagined.
Posted: Wed Dec 01, 2010 02:22 am Post Subject:
You're starting an agency and looking for pointers here?
My advice...find someone you don't like much to pledge a bunch of collateral for your agency...they are going to lose that money.
Posted: Mon Dec 06, 2010 08:27 pm Post Subject:
how much commision can you make off of a million dollar annuity
Posted: Tue Dec 07, 2010 06:29 pm Post Subject:
As much as $80,000 from some companies. An 8% commission is fairly typical. But if you are in the business only for the commissions and not for the purpose of providing the right products to folks for the right reasons, then you need to reconsider your motives.
Posted: Fri Dec 10, 2010 11:46 am Post Subject: new business interest
Looking to write P & C in Iowa for commercial and personal to start. Intend to expand to offer life/health and annuities in the future. Any words of wisdom would be appreciated. Financial planning background/ obtaining a degree in finance & real estate...almost complete, and about a year of insurance background in commercial P & C lines. Any thoughts or pieces of advise? Keys to achieving success as an independant agent?
Posted: Sat Dec 11, 2010 03:03 pm Post Subject: Becoming an insurance agent
Please tell me...is it better to clean up ones credit scores first or get the insurance sales training/licensure?
Posted: Tue Dec 14, 2010 12:29 am Post Subject:
Financial planning background/ obtaining a degree in finance & real estate...almost complete, and about a year of insurance background in commercial P & C lines. Any thoughts or pieces of advise? Keys to achieving success as an independant agent?
The degree in finance and real estate may be nice to have, but is unnecessary for success in our industry. What makes an agent successful is knowing his/her products and finding people who want/need them, and then being able to give a product presentation and not being afraid to ask for the check.
Prospecting and appointment setting activities are the most beneficial for establishing a business.
Posted: Tue Dec 14, 2010 12:30 am Post Subject:
is it better to clean up ones credit scores first or get the insurance sales training/licensure?
Did you want to BUY insurance or SELL insurance?
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