What Do Life Insurance Agents Get Paid?
11498 POINTSview profileJason GoldenzweigCo-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, NevadaLife insurance agents work on commissions meaning they are only paid when they finalize the sale of a policy (including the carrier receiving any necessary outstanding requirements to place the coverage in force). The commission is generally a percentage of the first year annual premium that an insured is charged. Some agent contracts may offer residual commissions for certain types of policies. Hope that helps.Answered on April 28, 2014flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaThere are a variety of ways agents are compensated for life insurance. The key issue is that the commission rate is generally higher in the first few years and greatly reduced in subsequent years. Other forms of insurance generally compensate the agent at a relatively consistent rate, year in and year out.Answered on April 28, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasGreat question! If you are considering a career in insurance sales, there are a couple of things to consider. The two most important things to know are that you are only paid when you have the application approved, and the policy issued; and that it can be very costly between the time you decide that this is your career, and when you are making enough to break even. If you are a go-getter, and are good at sales, you can make a ton of money, and helping people feel secure is very rewarding. You can also start making a profitable living very quickly. If rejection, long hours, and the lack of a steady paycheck bother you, don't seriously consider this for your career. The fees and costs involved in your training and licensing can also be tough, if you haven't got the money to pay for them, and to develop a client base to work from. I certainly am not trying to be negative about this as a career, ( I enjoy it very much) but I do believe in painting you a very clear picture (something that was not done for me - I had a very gung-ho recruiter who wanted money, and didn't particularly care about how he got it, or what happened to the people he made it off of). I obviously overcame that, but it would have been nice to know going into it what to expect.If you would like more information, hit the "contact me" link, and I'll be happy to give you more detail. Good for you, and thanks for asking!Answered on April 29, 2014flag this answer
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