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	<title>New answer on: How Does An Agent Get Paid On Life Insurance?</title>

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		<title>By: Joe 'Gravy' Graves</title>

		<link>https://insurancelibrary.com/life-insurance/how-does-an-agent-get-paid-on-life-insurance</link>

		<dc:creator>Joe 'Gravy' Graves</dc:creator>

		<pubDate>Sat, 02 Apr 2016 15:26:46 +0000</pubDate>

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		<description><![CDATA[Generally speaking, an agent is compensated by the insurance carrier with a percentage of the annual premium. The percentage depends on the product sold. Some line of business, Like Workers Compensation, might be as little as 5%. Your average home/auto insurance compensation is in the 8-15% range. TO address your life insurance question... The compensation is much higher than your property based plans. Maybe as much as 50%+ % of the first year premium.  Property insurance agents are compensated (typically) at a level rate for as long as the client stays with them. That&#039;s 15% year after year. With life insurance, the ongoing compensation is very little, if any at all. Nearly no term life product pays ongoing compensation. It&#039;s a one and done thing. Don&#039;t think, &quot;WOW. That&#039;s a lot.&quot;... let&#039;s look at the math... You buy a term life policy for $50 a month. Let&#039;s assume the agent earns a whopping 100% of the first year premium. If you keep the policy for the entire 20-year term... the math... the agent was only compensated 5% of the total premium. I hope your question isn&#039;t asked out of worry over the agents’ compensation. :-(  DON&#039;T worry about the agents side..... Worry about getting the best value for the best plan for your specific needs. If you have any questions, please reach out!! -gravy.]]></description>

		

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		<title>By: Peggy Mace</title>

		<link>https://insurancelibrary.com/life-insurance/how-does-an-agent-get-paid-on-life-insurance</link>

		<dc:creator>Peggy Mace</dc:creator>

		<pubDate>Tue, 17 Sep 2013 03:27:59 +0000</pubDate>

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		<description><![CDATA[Agents that are hired by an agency may be paid a salary by that agency. Agents that sell independently, or in an agency that pays according to production, get paid commission. The sale of a life insurance policy will pay the agent a commission if the policy is retained for up to a year. Some policies will pay a &quot;residual&quot; commission (much smaller than first year commission) for each year the insured person keeps the policy.]]></description>

		

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