How to Make Money as an Insurance Agent

Buying an insurance policy for your property and life has become very normal these days. While buying an insurance policy will get you coverage for your property or life, paying premiums regularly can become a financial obligation for you especially if you have bought an insurance policy for a lot of things. However, becoming an insurance agent can become your life savoir.

Becoming an insurance agent is similar to affiliate marketing. You refer customers to the insurance company and earn a commission. Unlike affiliate marketing where you earn a one-time commission on a successful purchase, insurance agents earn recurring commissions provided the referred customers regularly pay the premium until the maturity period (some insurance companies give commission only for a few years).

How to become an insurance agent?

In order to become an insurance agent, you will have to apply for an insurance agent in an insurance company. You will have to undergo short training and get a license, which should be renewed every year. Once you have the license, you can start earning profits by insuring people and earning a commission.

How much money can you make as an insurance agent?

How much you can earn depends on the insurance company’s agent policy, but normally, you will earn 25 percent commission in the first year, 15 percent in the second year, and 10 percent for the rest of the maturity period. Commission you earn is not on the insured amount but on the premium paid by the policy buyer. For example, if the customer you refer to the insurance policy buys a life insurance policy of $2000 and is paying a $100 premium every year, you will earn 25 percent of $200 or $50 in the first year, and $30 in the second year.

How to make money as an insurance agent?

The easiest way to earn money as an insurance agent is by becoming an agent first and then buying an insurance policy for yourself (this is allowed by many insurance companies). You can then insure your spouse and kids and earn commissions from the insurance policy you bought for your family members. You can also reach out to friends and family.

Can you actually make money as an insurance agent?

If you are good at persuading people, if you are good at impressing people, and if you are an agent for a reputed insurance company, you can actually make money as an insurance agent. The best thing about becoming an insurance agent is you do not have to give up your regular job; you can do it as a side income. You can earn passive income as an insurance agent.

First published on Forum Coin in author's name