04/11/2021
There are several benefits to becoming an agent. Whether you’re interested in full time or part time, ask me how! Serious inquiries only. PM me for more details.
Benefit #1: Easy Access
First, becoming a life insurance agent is easy. No educational requirements exist beyond a high school diploma. Some states require you to take a licensing course and pass an exam, but truthfully, these are relatively easy.
Benefit #2: Job Prospects
Second, life insurance sales jobs are abundant. The online job search sites, such as Monster.com and craigslist, are full of them. If your resume is posted on a site such as LinkedIn, you may even be contacted by firms looking to swell their agent ranks.
Because most companies offer commission-based pay with no guaranteed income, they have no incentive to limit hiring. They offer jobs to anyone interested and hope a small percentage become productive agents. Most companies even reimburse you for the cost of obtaining your license after you sell a certain amount in premium dollars.
Benefit #3: The Money
By far, life insurance offers the largest commissions in the insurance industry. The typical first-year commission for an auto insurance policy is 10% to 15% of the premium. For health insurance, it is up to 7%. Life insurance often pays 100% or more of the premium. This means if you sell a policy with a $100 per month premium, you make a total of $1,200 in commission on that policy during the first year.
In addition to high commissions, some life insurance companies advance their agents six to 12 months of commission on a sold policy rather than making them take it as earned. On that $100 per month policy, with a six-month advance, you receive a check for $600 the day the policy is issued. The downside occurs if the policy lapses before six months pass; if that happens, your employer charges back the unearned portion of your advance.
Benefit #4: Passive Income
Best of all, as a successful life insurance agent, you can make a lot of money down the road. In addition to the immediate commission earned from selling a policy, you get paid renewal commissions on that policy for as long as it is in force.
For example, a whole life policy purchased by a 30-year-old who lives to be 90 and keeps the policy their entire life pays you commissions for 60 years. Your commission percentage on a policy drops after the first year, but you keep earning 5% to 10% as long as the policyholder pays their monthly premium. This is passive income you receive each month without even having to get out of bed.
Many life insurance agents who have been in the business 20 years or more have enough renewal commissions built up to make an excellent living without ever having to sell a new policy.
