Life insurance agent salary: There are many different types of insurance (ranging from auto insurance to health insurance, home insurance, and pet insurance), but life insurance agents are the highest-paid. There is no human being I have ever heard of, and I believe you as well, who is engaged in an activity or a business for which they are not compensated.
The sole aim of doing business is to earn a living. Whether it is the grocery business, writing business, or insurance business, there are a lot of people who have made it big in the insurance industry.
Here in this article is everything you need to know about a life insurance agent’s salary, from how much they earn yearly, per commission, per policy, etc.
Life insurance agents.
Life insurance as a field in the insurance industry is a highly competitive environment. Which could be tough for a first-time agent.
A life insurance agent, on the other hand, is any person who represents the life insurance field under insurance. The responsibility of a life insurance agent is to give advice and conduct intermediary services between a client and the insurance company, including selling life policies that payout when a life-insured person dies,
What does an agent do?
If you are thinking of going into the insurance market, You have been dreaming of a career in the insurance field.
For some reason, you have chosen to become a life insurance agent.
Here is what a life insurance agent does:
- Selling life insurance annuities and policies to clients
- Working with clients to process insurance claims urgently
Selling life insurance annuities and policies to clients
It is the main duty of a life insurance agent to sell policies and annuities to clients. A life insurance agent is a person a client would meet for their insurance processing and advice. So, whether a client goes on or not with getting life insurance cover is 99.9% dependent on the agent.
Working with clients to process insurance claims urgently
Being an insurance agent entirely has a lot of selling involved. When a client or more want to purchase or file for a claim, it is the duty of the life insurance agent, or any agent in any other insurance field, to attend to them. Another typical duty of a life insurance agent is to pursue clients back to back,
They are expected to go for client haunting and most importantly pursue potential clients back to back. You can follow up with clients by mail, phone calls, social media platforms or any other available means. No career is easy and does not determine hard work, not even in the insurance industry, there are a lot of paper works required in the insurance industry, From pursuing potential clients to helping them select or find the product that suits their need.
Before becoming a life insurance agent
Before an individual would be considered fit for the life insurance agent career, Just like in other fields, like when one has the dream of becoming a doctor, You would first have to pass through a series of tests, from the exams in the university lecture hall to the practical exams.
You would have to pass a life insurance licensing exam or life and health licensing exam
This is not enough, continuing education for licensing renewal is mandatory Including the fact that a life insurance agent must stay up-to-date on regulation changes and industry updates.
An aspiring life insurance agent should be ready and able to read professional publications, Maintain personal networks, and participate in professional organizations.
If individuals are able to pass the whole tests and all that is required of them as listed above, Successful life insurance agents are expected and advised to also be active in participating in their community as it helps build their reputation locally and network for prospective clients.
Routes of employment for a life insurance agent
There are two different routes for employment that a life insurance agent can go, you can either choose to go to a captive life insurance agent or a Non-captive life insurance agent.
Captive life insurance agent
Being captive life insurance means simply that, you are going to be working for s single or one insurance company and you are going to be selling only the company’s products.
Although some captive life insurance agents are salary-based, there are limitations and challenges as well as benefits to the career path, including
- You receive pension benefits
- Continuing education training
- Life and health insurance benefits.
Non-captive life insurance agent
Non-captive life insurance which is also called Independent life insurance, means, you can able to sell multiple policies and your income or earnings can come from different angles which is the benefit a captive life insurance agent does not enjoy.
The only limitation in the independent life insurance route is the fact that you have to start the business with your own resources and you market it.
Necessary skills to become an agent
The key skills required of you as a life insurance agent, are not dependent on whether you become a captive or a non-captive life insurance agent.
Below are what it takes to become a life insurance agent:
Excellent interpersonal skills
A life insurance agent is expected to have high interpersonal skills, so as to be comfortable in dealing with persons from different walks of life and temperaments.
Communication skills
A life insurance agent should be able to communicate with people and explain what their product is and how it works in order to persuade them to buy. Not only should you understand what your products are about, but you should also be able to communicate to your customers what you expect them to do or the action you want them to take when purchasing your product. It is critical to be able to explain to your customers what your products are all about.
Tech skill
Nobody in this century would do anything as a business and not want to take it to the media. From creating the web to appearing on review sites and social media platforms, being tech-savvy will help you advance your career. Many potential clients may come across you by chance.
Life insurance agent salary
No human can do work, or go into any career field where they are not going to be making money. Even though you may have a job for the meantime, the essence of one working is to make ends meet and generate income so as to be able to sort out life needs, whether primary or secondary, 99.9% of the troubles man is faced with in life, needs money to be solved.
Before going into life insurance, as an agent, you should be interested in knowing the salary you are going to be earning, the estimated salary of a life insurance agent; the salary of a life insurance agent could depend on whether it is Monthly, or yearly or hourly. Another factor that promotes the difference in salary of a life insurance agent is Country/state.
Salary of a life insurance agent in the UK
A life insurance agent’s annual salary in the United Kingdom is £30,000, or £15.38 per hour. For starters, it starts at £25,000 per year. While older and more experienced workers can earn up to £35,500 per year. That is, the minimum salary for a life insurance agent in the UK is £25,000, the median salary, or monthly salary, is £30,000, and the highest salary is £35,500.
If you choose to be paid biweekly, you will receive £1,250. The weekly payment is £577, which is the median weekly salary; however, some companies may pay their agents £683, which is the highest amount anyone can earn as a life insurance agent in the UK per week.
Some other companies may still pay £481, the lowest amount any company would pay its agent per week. The daily wage ranges from £115 to £137, with the lowest wage being £96.15.
Average salary of a life insurance agent
Conclusion
A life insurance agent’s salary varies depending on a few factors, including education level, certification, additional skills, and work experience. Independent life insurance acts as a middleman in the life insurance industry, representing various companies. Also, independent agents may earn more than dependent agents. You, like the top 10% of life insurance agents, can earn more than $127,000 per year. An educational certificate is not required to become a life insurance agent, but it may be an advantage.
The average salary of a life insurance agent in 2020 was $52,180 per year. As of May 27, the average salary of a life insurance agent had increased to between $35,221 and $41,211, indicating that the salary had decreased from 2020 to May 2023. However, by June 20, 2023, the salary had risen significantly to $84,502 per year.
FAQs about Life Insurance Agents’ Salary
How much can an agent make
A life insurance agent is sure of making up to $125,500 per year.
Why do some life agents quit?
Most people who go into life insurance as agents quit within 1 year because sometimes, earnings do not come in as they thought, as of course everything you do pays off by hard work.
How do life insurance agents make money
Life insurance agents make their money by commission earned.
