Did you know you can sell all or part of a life insurance policy, including term insurance?
(2 minute read)
Life insurance agents can make a lot of money, because their salary is often based largely on commission, even when an employer pays them a base salary. If you are an independent insurance agent, commission rates become even more important because you will only be paid based on commission. This is one of the reasons most insurance agents sell a wide range of insurance products, not just one type of policy. Let’s explore the average annual earnings of a life insurance agent and the different types of approaches that can allow these professionals to earn more money.
average salary of a life insurance agent
The average salary for an insurance agent in 2020 was $52,180 a year, according to the US Bureau of Labor Statistics. this includes life insurance agents. In general, job prospects for insurance agents appear stable and secure. The insurance sales industry is expected to grow 5% by 2029, which is slightly faster than the national average. Although many customers use the internet to research policy options and providers, they still trust agents to fully explore and understand the right policy for them. This is especially true with life insurance, where different types of life insurance policies offer different benefits for each person and family.
The top 10% of insurance agents earn more than $127,000 a year, reflecting how many earning opportunities can be achieved through commissions.
How can life insurance agents increase profits?
Increasing life insurance profits happens in one of two ways: the agent works harder to make more sales, or they work smarter to achieve more value while serving the best interests of their clients. simply chasing an increase in sales could inspire someone to sell policies that aren’t necessary. Here are some strategies life insurance agents can use to ethically increase profits.
- Review Leads: One way to increase profits as a life insurance agent is to follow up on old leads who did not purchase a policy at the time. Your life situation or needs may have changed, making this a better time to purchase life insurance.
- Expand marketing channels: Life insurance agents can increase the number of available qualified leads through tactics such as digital marketing. If pay-per-click offers are too expensive for search engine marketing, you can try strategies like hosting a webinar or creating an e-book. You can also try in-person marketing, like sponsoring an event, print advertising, or direct mail.
- Consider Life Settlements: All life insurance agents will eventually end up talking to a customer who no longer wants, needs, or can afford a policy. In some of these scenarios, a life settlement may be a better option for your client. For policyholders over a certain age, these regulated transactions allow them to obtain much more value from the sale of the policy than if they were to surrender it. if they are part of the transaction, the life insurance agent receives part of the commission fee.
Life insurance commissions are based on the size and type of policy being sold, which means a life insurance agent’s commission calculator differs from source to source. The amount an agent is paid over the life of the policy is based on the company and the type of life insurance policy. Agents typically receive most of their commission from a sale the first year the policy is sold, with diminishing returns over time. this is part of what makes a life settlement such a great option for both agents and their clients. agents get a higher return on the policy after they have not planned for that income, while policyholders get a much higher return on their investment than the surrender value.
did you know you can sell all or part of a life insurance policy, including term insurance? Selling an unwanted life insurance policy is no different than selling your car, house, or any other valuable asset that will generate immediate cash. Contact us today for more information.
leo lagrottelife settlement advisors[email protected]1-888-849-0887