Can you make millions in the insurance sector?

Posted: Tue Apr 28, 2009 03:27 pm Post Subject:

well it depends upon the kind of market and the commission rate....If you were a direct appointed agent with a captive company, you would get a guaranteed salary to start for anywhere between 15 weeks and three years, depending on production quotas.

If your statring salary was $600 per week, and you met quotas, $600 X 52 = $31,200. If you met and exceeded quotas, and earned bonuses, you could be looking at $50,000 your first year.

Remember that these captive companies also provide paid retirement, 401K, group life and health and disability income insurance for their employees. Also, these companies provide local and home office assistance, desk or office space, phone, training, and assistance in the field.

If you had a direct appointment with a life company as a General Agent, your first year commission could be as much as 100% or more.
In this scenario, you would be under an independent contract, and would work all your own leads.

Let's say that you wrote medium-size premium cases, ($2000 annualized premiums per week, for this example) and your commission was 100%. Lets say that you did this for 50 weeks, and your persistency rate was 80%:

$2000 X 50 = $100,000 X 80% persistency = $80,000. If all these premiums were paid annually, you FYC would be $80,000. But keep in mind that you pay your own 401K, Self Employment and Business Taxes, health and life insurance, phone and office expenses.

As an independent agent, you might have a quota of only $10,000 annualized premium per year, or less. This does'nt give you much of an incentive to produce. But in turn, you don't have as much pressure from upper management to produce........and about the no. of insurance ucan sell totally depends upon u and iamge of ur company in market.........hope the information that i provided satisfies....... well many other insurance axperts are there in this community...they'll throw some more light on it.......best of luck...

Posted: Tue Apr 28, 2009 05:57 pm Post Subject:

i WANT TO BE AN INDEPENDANT life and health AGENT! -for an agency
please give me a more simple explanation of how much i could make the first year please!

Posted: Wed Apr 29, 2009 08:36 am Post Subject:

First off, the career of an insurance agent won't make you rich over night. Even if you slog all day, earning 1 million in commission for the first year isn’t going to be an easy task.

Now, if you start off as an independent agent remember that you would be all your own to establish yourself in the industry of insurance. Further, There would be thousand other agents to give you a though time.

As an independent agent you would be responsible for generating enough business consistently to keep you floating since you would be required to bear the costs of running office, maintaining logs, generating leads and such.

~Jeremy

Posted: Wed May 06, 2009 09:51 pm Post Subject:

please give me a more simple explanation of how much i could make the first year please!

Posted: Thu May 07, 2009 06:51 am Post Subject:

If you know that you are ambitious, motivated, and willing to learn...then you have the chance to be successful. HOWEVER, it is entirely up to you.

Posted: Fri Sep 25, 2009 09:54 am Post Subject: Insurance

If you are looking for a quick fix, sell the product and move on environment, insurance is not for you. I'm a broker who has seen alot the last 20 years. We hired an auto finance person who was used to making fast 'deals' to sell insurance recently and he is so frustrated with how long it takes to bind coverage and then has to SERVICE his new accounts which takes up a lot more time. My first year producing made me a grand total of $25k. The trick is to renew those accounts and then to get referrals to build your pipeline. Good luck.

Posted: Tue Sep 29, 2009 02:28 am Post Subject:

Maybe over a lifetime. Only a select few clear seven figures on a yearly basis.

Posted: Thu Oct 08, 2009 10:11 pm Post Subject:

In my opinion, the money shouldn't be the focus at all. Sure, it is why we work, but one is much better served if the concentrate their efforts on being an asset clients. If they can provide value, the money will come....lots of it. However, if a client smells someone that is money hungry, whom tend to stink of it, then the client usually bails...as well they probably should..

Posted: Mon Dec 14, 2009 04:35 am Post Subject:

hello...anyone thought of passive income? irony is that to get more money you will have to clock more hours in insurance industry :D

Posted: Wed Dec 16, 2009 11:02 am Post Subject:

I would like to get into the insurance field after my bachelors in accounting. I would like to know what my income potential could be the first if i where in a large and a hard worker. How much do insurance agents make in their first year?