What type of income can you make selling commercial group insurance?
October 14th, 2009 2 Responses
I am considering a career change into commercial insurance sales. I am wondering what the job is like and how well it pays.
By commercial the company sales insurance companies buy to cover their assets. They also sell group health, but that is only one area they work. They have about 10 types of coverage they offer, and the group health for employees is only one of those. Sounds like a slightly better situation. Anyone familiar with this bigger picture?
It pays commission – so if you don’t sell, you don’t make anything.
New agents, well, 95% wash out. They can’t make $1,000 over six months. The other 5%, they probably average about $50,000 the first year. But it’s HARD work, and lots of hours.
December 21st, 2009 at 4:18 pm
It pays commission – so if you don’t sell, you don’t make anything.
New agents, well, 95% wash out. They can’t make $1,000 over six months. The other 5%, they probably average about $50,000 the first year. But it’s HARD work, and lots of hours.
References :
December 21st, 2009 at 5:03 pm
Consider this: On average only 15% of new agents make it to 5 years in the business.
I’m not sure what you mean by "commercial group", unless you mean group health insurance. If that’s what you mean, consider this.
If you make 10% commission, to make $50,000 the first year is to write, issue, and keep $500,000 in annualized premium.
If your average group is 15 employees. (most employers employ 25 or less employees), and the average monthly rate per employee is $500, including the employee’s and employer’s cost-share, you would have to write, issue and keep 66 cases the first year.
With good persistency, and you keep writing the same every year, your pay will increase every year with the renewal income.
References :