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: Sun Nov 11, 2012 04:32 am Post Subject:
If you can make the transition from being on salary to being on commission, it could work for you, too.
Posted: Mon Dec 10, 2012 09:01 pm Post Subject: American Income Life
I am in the process of obtaining my Licenses and I am a bit concerned about this employment. I was told the postion I was being interviewed for was Benefits Director, however everything since has been directed towards being licensed and sales. I have no experience in this area and I'm concerned about it. I personally dont care for pushy sales people.
Posted: Mon Dec 10, 2012 09:09 pm Post Subject: American Income Life
Ok is AIL a reputable company and do they have a high retention rate of employees and customers?
Posted: Mon Dec 10, 2012 09:10 pm Post Subject:
I personally dont care for pushy sales people.
I don't care for them either. But not all sales people are "pushy" -- some are professionals who actually know how to sell -- by asking questions and listening to the answers.
It sounds, however, that you have been misrepresented the nature of the position. Did they tell you it was 100% commission to begin with, or did they just tell you you can make $100,000 per year? You probably thought there was a salary in there somewhere, right?
Posted: Mon Dec 10, 2012 09:28 pm Post Subject:
If AIL = American Income Life Insurance Company, they are "reputable". Their agent retention is probably about the same as any insurance company -- 10%-20% after 1 year. Hire 10, and 1 or 2 will still be around a year from now.
Posted: Mon Dec 10, 2012 09:37 pm Post Subject: American Income Life
It was a 3 part interview phase in which I passed or was considered for the 3rd phase at which time I was told I was hired. After I get my licenses and training I would start getting paid. In this jobless economy I was just excited at the time of being hired. Now after purchasing the training program, paying for finger printing and the license test, its all seeming as I will be just another sales agent working on commission. Can I get a refund on the items I have purchased so far?
Posted: Mon Dec 10, 2012 10:32 pm Post Subject:
Can I get a refund on the items I have purchased so far?
You can try, but the answer is probably not. But the good news is that as a licensed life agent (or life and health), you can work for any insurance company. You could work for AAA selling insurance and annuities to members, you could work as a rep for an HMO or PPO, and earn a salary and commission bonus.
Where you are may not be the perfect fit for you, but you'll never know if you don't try. Study the materials, get your license, let AIL train you, and see how things go. Commission can be a scary thing, but from my perspective, it's a lot better than being on salary, because there is no limit to what you can earn. As long as you are doing the right things for people the right way.
You don't have to be "just another sales agent". You can be much better than that. But if you quit at this point, you have no one to blame but yourself. As I've told hundreds of students, it could take you two years to figure this out. What if you stopped after 23 months?
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