Insurance agent complete overview. Let’s hump into the article and learn how insurance agent can make money.

  • How much do health insurance agents make?
  • Do real estate agents have health insurance?

1.      What is the average pay for health insurance agent?

There are only a few businesses outside of financial services where relatively inexperienced people can make a lot of money in their first year of employment. Few jobs in the financial services industry provide newcomers the opportunity to make as much money as a life insurance agent does straight away. A hardworking insurance agent may earn more than $100,000 in their first year of sales.
However, being a successful insurance agent does not come without a price. It’s a complex field to break into, and most people burn out sooner rather than later. Agents who work in the insurance industry hear the word “no” considerably more often than “yes.” It is not uncommon for the word “no” to be delivered with profanity and the proverbial door slammed in one’s face. Furthermore, many people despise insurance agents, some even comparing them to glorified swindle artists. However, for those who can handle the possibility of rejection, the money and flexibility of working as a life insurance agent may be worthwhile.

A Quick Overview of the Insurance Industry

While there are many different types of insurance (ranging from car insurance to health insurance), selling life insurance is the most profitable. Agents who specialize in this area of the insurance market assist families, businesses, employers, and other parties in avoiding financial loss in the event of a death.
Agents who sell this form of coverage are either “captive” agents, who exclusively sell insurance from one company, or “non-captive” agents, who sell insurance from numerous companies. In either instance, the ordinary insurance agent will spend most of their time marketing to discover clients who may require new or increased insurance coverage, provide estimates from the firms they represent, and encourage them to sign a new insurance contract.
In the first year, a life insurance agent typically earns 30% to 90% of the client’s payment for the policy (also known as the premium). Later on, the agent may collect anywhere from 3% to 10% of each year’s premium in “renewals” or “trailing commissions,” which are also known as “renewals” or “trailing commissions.”

Let’s take a look at how a life insurance agent makes money:

Example of Sales Commission in the Insurance Industry

Uni sells Ryan a whole life insurance policy that covers him for the rest of his life (assuming they continue to make their premium payments). Uni’s insurance company pays a 90 percent /5 percent commission on whole life policies, which means the selling agent gets 90% of the first year’s premium and 5% of future renewals.
Ryan pays $100 per month or $1,200 per year for the policy. Uni will earn $1,080 in the first year from the sale of this life insurance policy ($1,200 x 90% commission). If Ryan continues to pay the premiums, Uni will make $60 in renewals in the following years ($1,200 x 5%). An agent who sells one or two policies per week at this commission level could earn $50,000 to $100,000 in their first year.

Qualifications for Life Insurance Agent

Being a life insurance agent is not for the faint of heart or those with thin skin. More than any other factor, life insurance agents, including education and experience, must have a fighting spirit. They must relish the thrill of the hunt, the rush of a sale, and consider rejection a stepping stone to future success. Introverts, soft-spoken people, and people who are afraid of controversy should avoid working in life insurance sales.
Most life insurance firms do not require any formal schooling to become an agent. While many people prefer college grads, this guideline is frequently disregarded in favor of the “proper” individuals. Because most medium and big insurance companies have internal programs to train their salespeople about the goods they’ll market, prior expertise in the business is not essential.
While a tenacious go-getter may find it easy to land a job with a respected insurance firm, state licensing is a non-negotiable barrier between a potential insurance agent and their commissions. Insurance agents must first obtain a license from the state or states in which they will be selling insurance. This usually necessitates passing a state-mandated licensing test and completing a 25-50-hour licensing course.

Getting a Job Selling Life or Health Insurance

If you think a career in life insurance sales is right for you, you may take a few steps to get a start. First and foremost, you must create a resume that demonstrates your business mentality. Anything that shows you are taking the initiative to make things happen, whether starting your own business or moving someone else’s to the next level, should be included. Agents in the life insurance industry must be motivated and self-starters. Resumes that demonstrate a history of such behavior can help you obtain a foot in the door.
After you’ve polished your CV, you’ll want to start looking for jobs and applying for them. Working for the wrong firm might burn you out and haunt you for the rest of your insurance career, so don’t feel pressured to accept the first job offer that comes your way. Working for a well-known company with a positive reputation among customers, other agents, and insurance rating agencies is ideal.
When determining where to apply, the best place to start is to go to the A.M. Best, Moody’s, or Standard & Poor’s insurance business rating websites. You’ll be able to compile a list of businesses in your state that has received an “A” rating or higher. These businesses will often provide the safest products at reasonable pricing, focusing on reward and retaining quality agents.

Make sure to follow up

Begin looking at each organization after you’ve made this list. Because insurance agents have such a high turnover rate, most organizations prominently publish their job openings by geographic area, making them easily searchable for you. When you find a company in your neighborhood that looks to fit your personality, apply for the job and follow the company’s website guidelines.
Make weekly phone calls until you receive a response in either direction. Many insurance company recruiters may refuse to interview a possible agent who does not have a phone back first; this is seen as a strong signal of a potential agent’s persistence. Continue to communicate your entrepreneurial and “never-say-die” spirit during your interview; most managers will hire someone based on these traits alone rather than all other reasons together.
If you’re lucky enough to get the position, you may expect to spend the first 12 months of your career passing out business cards and making phone calls. Your sales manager will convince you that finding new clients is the only “meaning” you have in life. How many contacts you make each week will be far more vital to them than how well you know their product line.
You can expect to suffer financially for the first several months until you earn sales commissions. While some organizations provide a stipend to keep new employees from going hungry, this is becoming less common. Many agents now consider themselves fortunate if they are paid for one to two months of training before being assigned to a “commission-only” position.

Some Words of Caution

While the life insurance industry promises enormous benefits for those ready to work hard and face many rejections, there are two traps to avoid. You will almost certainly be required to market first to your friends and family. While appealing and seeming like an excellent plan to get you started, it may also cause a lot of damage to relationships with people you care about.
Second, go to the website of your state’s insurance commissioner and look up any complaints filed against companies you’re considering working for. Insurance businesses with less than an “A” grade and those who sell insurance through a multilevel marketing scheme often have a far greater rate of complaints than larger, more established companies.
Accepting a job with the incorrect insurance firm might lead to burnout and the end of your career aspirations. If you want to work in life insurance sales, take your time and look for the appropriate opportunity at the right business. You will have a better chance of long-term success if you do so.

insurance agent

2.      Is health insurance available to real estate agent?

The bulk of real estate brokers works for their firms as independent contractors. Many independent contractors don’t have access to traditional benefits like health insurance that employers provide. The reason is that they are self-employed.

Many self-employed real estate agents struggle to find inexpensive health insurance. Some real estate professionals can purchase health insurance through their brokerage, a family member’s plan or The National Association of REALTORS is a trade association of real estate professionals. Others resort to the Affordable Care Act (ACA), which covers low- and moderate-income people with health insurance.

The Affordable Care Act (ACA)

Individual health insurance is a form of policy that people can acquire for themselves or their families if they are not eligible for insurance provided by a large group employer. However, these plans can be expensive and have limited coverage.

For previously uninsured people, the Affordable Care Act aims to provide cost-effective, high-quality individual and small group insurance coverage (plans for small enterprises or startups).

The ACA’s provisions were designed to accomplish the following:

  • Increase insurance coverage
  • Enhance consumer safeguards
  • Stress the importance of preventive and well-being.
  • Enhance system quality and performance
  • Increase the number of healthcare workers
  • Put a stop to growing healthcare costs.

Independent contractor, such as a real estate agent, now have more health insurance options due to the Affordable Care Act. We will take a look at a few of them below.

Real Estate Agent Health Insurance Options

Plans for Health Insurance Brokerage

Some brokerage businesses, like Keller Williams, provide health insurance to their employees. They have their exchange, KW Wellness Benefits Marketplace, compliant with the Affordable Care Act. Medical, dental, and eye care are all available.

Group Health Insurance Plans for Associations

The National Association of Realtors’ REALTORS Insurance Marketplace provides affordable health insurance solutions to its members. This e-commerce site offers users health insurance through a private health insurance exchange that complies with the Affordable Care Act’s requirements. It also provides dental and vision coverage for the entire group.

Alternatives to the Association

Some real estate brokers have turned to other organizations for group health insurance, such as alumni associations, AAA auto clubs, and religious organizations.

Health Exchanges under the Affordable Care Act

At ACA health exchanges, people can buy health insurance complying with the Affordable Care Act (ACA). They can select from various government-regulated and standardized healthcare plans offered by the exchange’s insurers. At, you can look for a marketplace in your state.

Getting a 2nd Opinion is a good idea.

Getting a second opinion from an independent insurance broker is always a brilliant idea. They are unbiased and may refer you to different group insurance programs. At the very least, you’ll know if the insurance plan you select is appropriate for you.

Check out our website insurance shopping to learn more.