On the downside, independent insurance agents are generally not allowed to sell policies offered by the companies which rely on captive agents, which often sell their policies through their own agents exclusively.
How much do insurance agencies sell for?
Agencies in the insurance industry today tend to actually sell for somewhere between an 8 percent return and a 12.5 percent return. So, my friend’s agency isn’t really worth $1.5 million on a $1 million commission income. It’s worth some multiple of its profits that generate an 8 percent to a 12.5 percent return.
What is the advantage of using an independent insurance agent?
Independent agents work with a variety of insurance companies to get you the best coverage at the lowest prices. An independent insurance agent has access to many markets to provide you with the policies you need. This access to choices can mean lower rates, less restrictive policies, and better coverage.
Is selling insurance easy?
On the bright side, selling life insurance offers a few benefits difficult to find in other careers. First, life insurance sales jobs are abundant and easy to find. However, even when you locate a good prospect, the product itself is hard to sell. People are loath to discuss or even acknowledge their own mortality.
Are Independent Insurance Agents good?
An independent agent can do important things for you: Agents have at their disposal the ability to quickly check prices and coverages with dozens – if not hundreds – of different insurance companies. Since rates vary widely an independent agent can very likely get you a better deal than you can get for yourself.
How do independent insurance agents make money?
The primary way an insurance broker earns money is commissions and fees based on insurance policies sold. These commissions are typically a percentage based on the amount of annual premium the policy is sold for. An insurance premium is the amount of money an individual or business pays for an insurance policy.
Is it easy to sell insurance?
Successful careers in selling life insurance take time and perseverance. Life insurance agents are paid in commissions and must find customer leads on their own in a competitive market. It can be relatively easy to find jobs selling life insurance.
Can independent agents sell State Farm?
State Farm, Allstate, and Geico are all insurance companies that will only sell their products through their agents. They don’t permit their agents to sell any products from any other insurance companies. Hence the word captive.
Do insurance agents get rich?
According to that data from the Bureau of Labor Statistics: The median annual wage for insurance agents was $48,150. The highest paid 10% of insurance agents earned more than $116,940 annually. The lowest paid 10% of insurance agents earned less than $26,120 annually.
