So, guys, I’ve got a question about life insurance commissions. I’m working at this local wealth firm that handles everything from financial planning to insurance.
I’m currently going through my life insurance course, and once I’m done and licensed, I’ll be writing policies for clients, mainly through insurers like Manulife.
Today, my boss mentioned that once I’m licensed, I’ll start earning a commission on each policy I write, with him taking a cut too. Now, when it comes time to negotiate my agreement with him, I’m wondering what’s a fair rate for him to take per policy? Should it vary based on the policy value or commission amount?
I receive a commission of 115% on the annual premium, while insurance companies pay out a total of 180%. So, whatever remains after subtracting my commission rate from 180% is what your boss retains for themselves.
So, when WFG talks to you about the potential earnings at 30%, what they’re essentially doing is gearing themselves up for the profits they’ll make from your sales.
Certainly. Initially, many new agents are enticed by an appealing vision of the industry. Some may opt for a small base pay coupled with minimal commissions, or a modest commission along with supposedly “free” leads. However, the reality is that leads always come with a cost. Whether it’s directly from your pocket or indirectly through lower commissions, there’s always a price.
That said, MLM agencies can offer valuable experience due to the structured environment they provide, which is often more than what independent agencies offer. Yet, if you’re self-motivated and disciplined, you stand to earn significantly more working independently.
Before committing, it’s crucial to ask the right questions. Inquire about your freedom to leave, the process involved, and if you can retain your clients. Understanding the terms thoroughly is key.
Learning the ropes of insurance isn’t a walk in the park, but it’s a rewarding journey. The industry is lucrative for those who persevere. Find a reputable company and a supportive mentor, and success will follow.