Income of Insurance Agent – Shocking Facts!!!, Commission of Insurance Agents. My this article talks about the income the insurance agent gets when you get and insurance plan being activated with him. You will be really be shocked to know the facts and figures of the insurance agents income, as this insurance companies provides huge commissions to the agents for getting new customers and enhancing the old customers to take other plans also. This article will surely help to know the income of insurance agent which no one other knows except insurance agent.
Income of Insurance Agent – Shocking Facts!!!
What they earn??
First we will see the limits prescribed by the Government regarding the maximum amount of commission that can be given to any insurance agent. The limits prescribed are as follows:
According to the Insurance Act, the prescribed payments to the insurance agents are that insurance companies are allowed to pay maximum as per following table:
1st Year – 40% of the Premium
2nd Year – 7.5% of the Premium
3rd Year – 5% of the Premium
In case of Single premium policies the commission paid is limited to 2% of the premium amount, in case of pension policies, the commission amount is restricted to 7.5% of the Premium amount in the 1st Year and 2% of the Premium amount in the 2nd Year.
Must Read – Travel Insurance – Everything You want to Know
Now we will see what the insurance companies pay:
Normally the insurance companies pay the insurance commission as follows:
1st Year – 35% of the Premium
2nd Year – 7.5% of the Premium
3rd Year – 5% of the Premium
In case of Single premium policies the commission paid is limited to 2% of the premium amount, in case of pension policies, the commission amount is restricted to 7.5% of the Premium amount in the 1st Year and 2% of the Premium amount in the 2nd Year.
So you can see that the insurance companies pay the maximum amount prescribed in the law, which is a great amount. The income of the insurance agents are very good if they are good at communication skills and are effective in getting more and more customers. The other way it is not always easy to get the customers. So they have also some work to be carried out to get the income. But someone thinking of getting the career as insurance agent is a good field subject to you having good skills that influence people to purchase that product.
Must Read – Best Term Insurances – Factors to be considered
Recommended Articels