Commission on single premium life insurance could be high but products sales can depend on a host of factors. This may include insurance companies’ commission slabs as also the exact number of plans that agents sell. Besides, it might even matter whether an agent is on salary or commission basis. Contracts with insurers can make a huge difference on the amount of money that you will actually make.
And agent may even be eligible to receive compensation regardless of whether he/she is a salaried person or a person working on contract. Nevertheless, there could be few parameters which might influence the amount of money you can make out of selling insurance policies.
Throughout the industry, life insurance commission payout plans are competitive. Companies incur certain expenses on maintaining staff, customer relation services, medical exams and such other reasons. These factors are also taken into consideration while determining commissions that are to be paid to agents. Accordingly, premiums are calculated by taking into account commissions or incentives which are to be paid to agents or brokers.
In addition, independent insurance agent commission rates differ depending on the type of policies being sold. Typically, insurance companies offer cash value or whole term and term life covers. The commissions for either of these plans could be different and these might further vary from company to company.
To sum it up, while a lot may depend on life insurance agent commission structure, there are some things which you need to keep in mind as under.