Insurance agent income
Because everyone needs insurance, there is always a demand for insurance agents. If you have ever considered becoming an insurance agent, you need to understand what the insurance agent income consists of.
If you are motivated, knowledgeable organized and good with people, being an insurance agent could be a lucrative career choice. The average insurance agent can earn enough income to live on. There are some agents who have substantial incomes through insurance sales.
Training is what you need most to become an insurance agent. If you have the opportunity to shadow an experienced agent, that is always a great idea. This can teach you how to speak with clients and the provide the tools you will need to offer the necessary information to prospective clients. While a college degree never hurts, it is not mandatory to become an agent. You will however, need at least a high school diploma as well as to complete your annual continuing education requirements to qualify to sell insurance.
The amount you earn depends on many different things.
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First thing to consider is the type of insurance you want to sell.
It is important to have a very good understanding of the product you are offering to your clients. If you do not, they will easily find someone better versed in the product they are inquiring about. The avenues you use to find new customers and the opportunity to up-sell related products all depends on the type of insurance you choose to sell. This decision will , of course, effect your bottom line.
If you decide to offer P&C insurance (home & Auto):
Your income(commission) is determined by a percentage of the policy’s premium. You also receive commission which is equal to a percentage of the policy’s renewal premium. If you keep your current clients as well as add new clients, you can have a steady stream of income.
Life & health insurance policy sales:
This commission is figured out a little differently. When the client first purchases a plan, their agent earns a greater percentage from the initial sale and a significantly lower percentage for the renewal of the policy. Some insurance companies put a limit on the number of years an agent earns commissions on the policies sold. Medicare sales has become very popular in recent years. Many agents are attracted to the recurring revenue it produces. CLICK HERE FOR MEDICARE ADVANTAGE AND PART D COMMISSIONS
Because there are different types of insurance agents, they earn income in different ways.
Captive agents – Sometimes earn a salary as well as a commission. Their commission is not full-street commission; as the parent company usually takes a good portion of it. Some companies offer a bonus for meeting sales quotas. In most cases, captive agents work in an office and receive leads from the insurance company they work for. This means, they do not have to find a lead source or purchase leads. Usually, there are more experienced agents near by to help answer your questions. Unfortunately, these agents are only able to sell the plans available from the insurance company they work for. This sometimes leaves clients with a less than perfect plan to handle their needs which may make selling the plans a little tougher.
Independent agents – Are self employed and in most cases, their income consists solely of commission payments. You will also earn a commission on the renewal of existing policies. There are occasional carrier bonuses earned for certain incentive programs. Independent agents make a higher percentage of commission than captive agents do. These agents must come up with their own marketing plan and follow through with it. Independent agents have the ability to offer a variety of insurance carrier’s products to their clients and therefore may have an easier job actually making the sale. They can present clients with several options for coverage and help them find the best possible choice.
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The decision to become an insurance agent can be a good option due to the continuously growing market. There is plenty of room for everyone in this field. All you need is the knowledge, the drive, organizational skills, a great sales pitch and a desire to help people. If you can answer yes to these questions, this may be the right career for you.
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