Many ask and very few know how to answer. This is because insurance agents are commission agents and earn according to their effort and momentum. His salary figure varies a lot. Here we tell you how much and how they earn. If you’re curious, just keep reading!
Do you know an insurance agent? Do you wonder how much he earns? The idea of the insurance agent, who runs from appointment to appointment and does not stop making calls, is already very rusty. Today we know that insurance agents are highly professional financial advisors who are dedicated to accompanying their clients towards their financial goals.
What does an insurance agent do?
An insurance agent or advisor is dedicated to marketing protection and savings schemes for insurance companies. He gets the best product for each client and guides them to purchase the product. The advisor offers his service and his advice over time. The relationship that is generated with the client is long-term because the insurance lasts a long period. We are talking about decades.
The portfolio formed by the insurance advisor is inheritable. If their sons or daughters decide to dedicate themselves to this profession, they continue to harvest the work of their father or mother.
How much money does an insurance agent make?
As we said, agents are commission agents. How much do insurance agents make? The total amount they receive depends on other commissions and items. They are the following:
– Initial commission:
It is delivered for the commercialization of each of the different insurances within the product portfolio. In life insurance, it is higher than in the commission of subsequent years.
– Renewal fee:
It is delivered by the portfolio maintenance service, that is, its clients. It is a decreasing percentage, but it lasts as long as the policy lasts. In the case of medical expenses, there is an initial commission and also a renewal commission that is practically permanent throughout the term of the policy.
– Cash Bonuses:
The advisor receives prizes based on the volume of premiums, the number of fulfilled policies, the percentage of conservation of his portfolio, and its accident rate. For successful advisors, these bonuses can potentially exceed initial and renewal commission income.
– Connection Bonus:
The agent receives an economic benefit on the commissions generated by those people he invites to the business, that is, new advisors. This bonus is applicable during the first six months of the activity of the new agent.
Depending on the level of commissions and bonuses, the advisor has access to Premium conventions in national and international destinations. Dubai, Singapore, Rome, Paris, Madrid are some of the international ones. Other types of in-kind incentives are gadgets and cars.
How an agent earns money depends on the service they offer, their ability to network and connect, and it also depends on their preparation. Today there are so many insurance services, covering “areas” that were unimaginable in the past. For example, teenagers tend to put themselves and the cars they drive at risk. Therefore, several companies are now offering young driver insurance for families who often “delegate” the task of driving a car to teenagers. In some cases, this type of insurance was very helpful.
There are many amazing success stories about the amount of money that can be made from this profession. Some of the agents hit triple digits a month. Due to their volume of work, they usually form offices and delegate part of their obligations. That is why an insurance agent easily becomes an Insurance Business Advisor.