Insurance Agent Income
The economic compensation system of the Insurance Agent is very simple: It consists of a commission for each insurance sold , which varies according to the insurance that the client has purchased, plus the bonuses for meeting sales goals that are granted by the Insurance Company. to which the Agent belongs.
The interesting thing about the commissions is that the Agent not only receives the commission for his sale only once, but every year that the client renews the insurance he purchased, the agent receives a commission for this renewal.
To quote some percentages and figures:
- When selling life insurance, the commission that the agent obtains the first year is a certain percentage, the second year this percentage is half of the first year and the third is half of the second and so on until the end of the term of the contract. sure. The agent continues to receive an income over the years as long as the insurance they sold is active.
- When selling a medical expenses policy , the commission obtained is a certain percentage and this remains the same for as long as the client keeps his coverage.
- As for the bonuses, if very high sales goals are met, you can get a bonus of up to a third of the total sales throughout the year.
- When selling savings and life insurance, if the insured saves a certain amount per year, the agent can obtain an excellent commission based on the client’s savings.
What does an insurance agent do?
Although, indeed, the functions of an insurance agent are mainly focused on getting end customers to contract insurance policies through sales, their tasks also include:
- Identify risk management strategies to customize them based on the needs of each client.
- Attend to the registrations and renewals of insurance policies of its clients.
- Track and follow up on the claims presented by clients about the insurance policy plans contracted.
- Act as an entity to promote the products of the insurer or insurers it represents to increase its client portfolio.
- Perform dividend calculations and establish payment methodologies.
- Address customer inquiries regarding the coverage offered by insurance policies
What is it to be an insurance agent?
An insurance agent is basically responsible for marketing and selling products of insurance companies, providing technical advice to the client during the term of the contract, and guaranteeing the management of the client portfolio and their loyalty to the entity.
How much does an insurance agent charge in Mexico?
The average insurance agent salary in Mexico is $180,000 per year or $92.31 per hour. Entry-level positions start at an income of $60,000 per year, while more experienced professionals earn up to $426,092 per year.
What does it take to be an insurance agent in Mexico?
Requirements and Studies. You need a high school diploma or equivalent and an insurance license from your state to work as an insurance agent. Licensing requirements vary between states, but generally require you to take an insurance course and pass an exam given by your state.
What comes on the insurance agent exam?
In this exam, the different aspects of insurance are considered, such as characteristics, conditions and what happens within the Regulation for Insurance Agents and Bonds. The preparation for this exam is essential, since, if you do not accredit it, you will not be able to obtain your ID to be able to act as an agent.
Insurance Agent Retirement
Already at the end of his career, the agent can retire at 65 just by maintaining his client portfolio , which would occupy a minimal part of his time.
This is a profession in which, if you are good at what you do, like in any other, you can increase your income over time in proportion to the effort you make.
It is not a profession for everyone, but those who decide to accept the challenge and dedicate themselves to continually growing, will be able to obtain a much higher income than in most average jobs.
Is it worth being an insurance agent?
After analyzing the commissions that an insurance agent can earn and the average monthly earnings and even though the average agent does not earn spectacular figures, even so, I believe that it is a very lucrative career with which you can live comfortably, Clear; as long as you stand out from the average, you are passionate about sales, customer service and you become a super insurance agent and why not, in your insurance agency.
Being an insurance agent is not for everyone and maybe it is not for me, since the truth is that I prefer to spend my time taking advantage of the advantages offered by online businesses , where I can obtain long-term passive income and sales even if I am not in front of My computer. The flexibility of time and being able to dedicate myself to the niche you want is what I am most passionate about working online.