Lets say for a medical insurance that cost you about $580 per annum, the comission that an insurance agent get is $150, for the first year, that is about 25% of your premium.
For the case of life insurance, the comission would be based on percentage, and that percentage will drops gradually over the years. For the first year, the comission can be as high as 80% if not more, and then 2nd and 3rd year still quite reasonable comission, and 4th and 5th get less. And the rest of the year nearly nothing.
So now you understand why it takes so long for your life insurance to get break even. And please have a good lunch and dinner from your agent if you are going to get a policy from him or her.
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14 years ago
1 comment:
Health insurance first year commission can be about 30%. I've written a more detailed commission structure breakdown in my blog too. Can take a look.
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