How much do insurance salesmen make

how much do insurance salesmen make


I can only answer from the Canadian viewpoint but likely there is not a lot of difference between the USA and Canada.

Insurance jobs either pay very well or near the lower end of the scale. It depends on what you do and how motivated you are.

If you are looking at getting involved in the insurance business then the future seems to be Financial Services. This is a life insurance agent who would hold his license to sell products which would include life insurance, disability, group plans and key person insurance`to name a few. This agent often will hold a license for General insurance so that he can cross-sell business insurance, commercial automobile, personal home and automobile as part of his book. The book of business is what is reviewed for performance and commission.

If a policy for a business averages about $1,500 and the commission in total paid to the agency is 20% you would expect to see a larger new business share of that $300 - likely 30%. Then you would see

15-20% each year on renewal. This one item you have sold will lead to the business vehicle policy - again $1000 or so at 12.5% so your share is 30% of that $125. This one client now asks you to look after their home, boat, and trailer insurances - another $1000 at 20% which gives you $200 you are received your 30% and then the 15-20% on renewal. This is all on General insurance side of the business. You haven't even touched the life insurance, disability insurance and possible group insurance plan for the business. That's where the bigger commission share is.

I would suggest you consider starting out on a salary base with some commission on top and a good benefit plan. You would likely get a car allowance and expense account.

It will be up to you as to how hard you work to look after that client. If you do an excellent job and really know your stuff then you can be very well rewarded. It's all about how much you put into it.


Category: Insurance

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