Agents: How Much Do They Make?
The debate about whether insurance agents should be regulated is still going back and forth. Insurance buyers are stating the fact that they should be the one enjoying the amount of saving on the insurance premium instead of insurance agents. On the other hand, insurance agents — at least the good ones — are offering valuable services in finding the best insurance deal available. When it comes to life insurance, the issue becomes worse; life insurance can cost quite a lot depending on the insurance plan, and the fact that most of the premium goes to insurance agents may not be acceptable for some people. How much do insurance agents make from life insurance anyway?
To give you a clearer picture on the issue, a regular insurance agent can get 25% to 50% of your term life insurance premium; this is applicable during the first year. For the following years, your insurance agent will still be getting averagely 4% to 7% of the insurance premium for as long as you are insured. With whole life insurance, the percentage gets even bigger. The insurance company will pay agents up to 95% of your first year’s insurance premiums. The following years, your insurance agent will still be enjoying a cool 6% to 10% commission.
Is that amount too much? The answer to this question is entirely up to you. You can simply go for the insurance policy you are comfortable with the most — in terms of coverage and premium — without having to worry about agents at all.