by darnardo1 » Mon May 11, 2009 07:55 am
Does a home service agent actually sell policies or just collect premiums at home from existing policies?
Is it fair to call them a distribution channel?
Is it fair to call them a distribution channel?
Posted: Mon May 11, 2009 10:40 am Post Subject:
Home service agents perform more as collectors than insurance agents. They collect premiums on behalf of the insurance companies on-weekly, bi-weekly or monthly basis. i don't think they are actually a part of the distribution channel since they don't distribute the policies of the insurance companies.
Posted: Tue May 12, 2009 12:20 am Post Subject: Distribution
So do they recieve commissions on new sales?
Posted: Tue May 12, 2009 05:16 am Post Subject:
First to become a home agent they need to under taining. than they sell the policies & collect the premium for the same. They get decided persentage for selling policiles & to collect premium
Posted: Tue May 12, 2009 05:32 am Post Subject:
Hi darnardo1,
So do they recieve commissions on new sales?
"Collections" has always been an incentive-based process. So I can't think of commissions missing out of the process entirely. But if a home service agent is not so qualified then their work wouldn't hold so much complexity as that of an insurance agent. They might just get a nominal amount as commission to enhance their performances. I guess they'd rather choose to work under a salary structure that offers a fixed pay...do you agree?
Steven
Posted: Tue May 12, 2009 09:00 am Post Subject:
So do they recieve commissions on new sales?
Since they are not involved with sales, their operation is restricted only to collecting premium they may not receive commission on the new sales. Its the agents who are involved with selling of policies entitled to receive commission on sales.
Posted: Tue May 12, 2009 09:03 am Post Subject:
Vaishali, please read the post made by Aron, home service agents normally don't sell insurance. They only collect premium on behalf of the insurance companies.
Can you share with us the resource where from you have got the information about home service agents selling insurance policies?
Posted: Sat Nov 17, 2012 02:55 pm Post Subject: Home service agents
I don't know where these folks got their information, but obviously they just like seeing their opinions in print.
Home service agents are fully accredited life insurance agents. They serve a specialized market of low income to low middle income families. Mainly because these families can't or won't use bank checking accounts. The agents get paid a sales commission for every policy they sell. They also get a collection commission for every premium dollar they pick up. Their territories are based on a weekly/monthly route. An average Home Service life agent will make between $30,000- $50,000 a year.
I started my career in 1986 as a home service agent. Many of my clients are still friends. If it wasn't for the policies they had with my company, many would have lost their homes or had to pass the hat for funeral expenses when they lost a parent or child. We've paid for many an education and put down payments on many a first car. It's an honorable profession because the agent only makes money when he helps someone else.
Posted: Thu Nov 29, 2012 01:15 pm Post Subject:
many would have lost their homes or had to pass the hat for funeral expenses when they lost a parent or child. We've paid for many an education and put down payments on many a first car.
Home Service (or Industrial) life insurance certainly fills a void for some folks, but this statement is a bit over the top. At least in California.
California, like most other states, places a limit of $10,000 on the life of any one individual, when covered by this form of life insurance. That's not going to cover the full cost of most funerals, it's not going to pay very many educational expenses, and I doubt it's enough money to prevent many homes from being lost to foreclosure.
Plus, it's very high cost in exchange for the coverage. A $10,000 policy would cost in the vicinity of $500-$700 per year (at the rate of about $10-$15 per week / $50-$60 per month). Folks between age 20 and 40 with bank accounts can get up to $100,000 or more in term life insurance for that same amount.
You don't need a bank account to have insurance, but folks with bank accounts tend to keep their insurance longer. Without a bank account, one would need to pay their premium on an annual basis to obtain the lowest cost. That's harder to do for folks who don't have steady incomes or reasonable incomes.
Posted: Thu Jan 25, 2018 05:20 pm Post Subject: darnardo1 's Chart?
darnardo1 - can you let me know where the chart is that you created and referenced in your post about career agents? I'd like to review it. Thank you :) :(
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