Insurance is one of the hardest things to sell as most sales agent will agree on. It’s an intangible item that will not immediately benefit the client. Together with its high cost, most clients or customers these days question how much of the insurance payment really goes to the insurance agent. The commission amount may vary because of the type of policy being sold together with the proprietary information of different companies. Not all insurance sales agents however make a lot of money in this field. Many of them struggle from one sale to the next. It’s a good thing that there are insurance commission loans that serve as life savers for most agents.
For home insurance, agents usually get commission pays that run anywhere from 10 to 20 percent of the total amount so this averages at mid 15 percent. Home insurance packages are more work intensive which is why companies provide higher commission rates for this type of loan. Home insurance agents have many specialized tasks to accomplish such as house inspections and calculating the property’s value. They also need to work directly with realtors and mortgage companies to accomplish all paperwork needed before closing day arrives.
Insurance products concerned with health pay commissions as low as 5 percent and reach a high 20 percent. Health insurance packages have short term policies that pay less. Agents generally earn more in the first year of the term than in the renewal years.
The greatest variance in rate comes in life insurance commission. This is because in the huge variance in terms and policies. The rate depends mostly on the company and type of policy being sold. Life insurance companies usually pay higher commission as compared to insurance companies covering others fields. If agents sell term life insurance packages it pays lower than permanent life insurance. The commission rate on insurance policies can be as lost as 15 percent and as high as a whopping 80 percent. During the first year, agents get more commission as it pays the most while the renewal may drop to just 15 percent.
Companies offering business insurance typically pay commissions in between 5 and 20 percent. This variance depends on the company and the type of policy they offer. Agents receive less pay than general liability and package policies. Sometimes business insurance agents need the support of agency managements to close group or complicated accounts which reduces their total commission. There are agents that prefer to work on a general fee than straight commission from the sale. They are referred to as insurance consultants.
Lastly, auto insurance sales agents are typically paid commissions that run in between 5 and 10 percent of their sales. Some agents make sales online but this pays less than making the sale directly. During the first term or year, the renewal may also pay less. Auto insurance pays less with the reason being the agent can sell higher volume to earn more. Newer agents typically need extra pay from their companies and get another job while waiting for their sales to renew. Two to five years later, the renewal becomes regular so they earn extra. Sometimes you simply need a little extra cash. Those with good credit don’t worry much about this, but for those with bad credit a bad credit loan from a company like BHM Financial may be your best choice.