Many people would agree that all salespeople are the same whether they sell cars, real estate, or insurance. This passionate group of people is tenacious and pushy as many would perceive. If you’re wondering why this is so – it’s because the income of insurance salespeople is entirely based on whether clients will buy a policy from them or not. This is why insurance salespeople work very hard to close deals so that they can get direct commission from all their hard earned sales. All the lead-following and cold-calling may lead to valuable sales that will bring home their bacon.
Sometimes, it takes quite a time for insurance commission checks to arrive. Most sales agents at this point take advantage of insurance commission loans. As long as they already have proof that they have a pending commission check that they can expect in the following days, or weeks, this document can be presented to a lender or financial institution and will in turn provide them with the insurance commission loan that is taken against their expected check. This type of loan is very easy to apply to and mostly approved within the same day.
How exactly is the commission determined? This will help also determine the amount of the loan that will be approved for the agent. Firstly, the commission check may depend on the type of plan or policy that the insurance company offers. The policy’s length or duration also plays a factor when determining how much commission checks salespeople will be entitled to.
Policy types are usually classified into two basic types namely: cash value life insurance and term life insurance. Agents selling these types of policies get different commission rates.
People on tight budgets can get valuable deals through term life insurance. Term life insurance is bought for a specific period of time and is available for low premiums. The insurance agent won’t however be able to get large commission because term life insurance doesn’t build in cash value. Commission rates for term life insurance differ from one company to another and this can range from as low as 10% and as high as 70%.
Cash value insurance policies are sometimes referred to as whole life insurance. They have an associated cash value and unlike term life insurance, they don’t an expiry date. This means that cash value insurance policies got you covered for as long as you live. The policy builds in cash value during the time that it is held and as long as the premiums are paid and as long as it is untouched. As compared to term life insurance, cash value life insurance policies have higher commission rates for agent because of its higher premiums and benefits. This is why agents prefer to close cash value insurance deals so they could earn more. Agents can get a whopping 90% up to 95% commission rate.
Just imagine the benefits of being an insurance salesperson and earn up to 95% of your sales. This is really a very rewarding career plus you have insurance commission loans to back you up while you wait for your check to arrive.
Between commissions a salesperson can run low on funds at these times you may need to get a loan. If you have bad credit or no credit don’t worry. A bad credit loan is just what you’re looking for. Though the interest rates may be high it is not a bad option.