President | Founder, CLM Insurance Group, Delray Beach, FL
Life insurance agents are almost always commission salespeople. Agents that work exclusively for one carrier may draw a small base salary, but the industry is designed on a pay-for-performance model. If you ask an agent that same question you'll find that most treat their practice as a small business regardless of who they sell for.
I think you'll find most of the agents that contribute answers on Insurance Library are independent insurance agents and 100% commission representatives.
In my opinion, that's a huge advantage for consumers, because the agents interests are aligned with the consumers. Sell the right policy the first time so the consumer keeps it and the agent gets commissioned for it.
That's a great question! An insurance agent most often works off of a payment that is made to them when they sell a policy or product for the company - called a commission. These commissions can be fairly sizable, or very small, depending upon the sale. Therefore, in most cases, the earnings of the insurance agent depend entirely upon their ability to sell, and the product commission that is paid upon the sale. I believe the vast majority of agents will tailor the right product to the needs of the client, but there will unfortunately always be a few that are more interested in commission than client. You are always wise to have an idea of what it is that you want, and if you feel pressured, to ask for time to think it over. Follow your instincts.
If you were considering a career as an agent, be aware that the start up period can be really lean until you've gotten your client base built, and you may need to have another source of income, especially if you were accustomed to a steady paycheck. Once you get rolling, if you are motivated, honest, and good with your clients, you can make a very comfortable living. Anything I can do to help, I'm happy to - feel free to contact me. Thanks for asking!
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I think you'll find most of the agents that contribute answers on Insurance Library are independent insurance agents and 100% commission representatives.
In my opinion, that's a huge advantage for consumers, because the agents interests are aligned with the consumers. Sell the right policy the first time so the consumer keeps it and the agent gets commissioned for it.
If you were considering a career as an agent, be aware that the start up period can be really lean until you've gotten your client base built, and you may need to have another source of income, especially if you were accustomed to a steady paycheck. Once you get rolling, if you are motivated, honest, and good with your clients, you can make a very comfortable living. Anything I can do to help, I'm happy to - feel free to contact me. Thanks for asking!