Paid the premium to my , who also has my house and my term life policy. Question is, how do they get paid. If a agent has say….3500 customers he/she is insuring, do they get paid from the or some other way. Just curious more than anything else. Would be nice to hear from an …

 

  • Peter 9:04 am on August 7, 2010

    We make commission on the premiums that you pay. The commissions range from 8 to 20 % of the premium depending on the company and product that we sell. MY cut is less than that though because I am paid on salary plus commission. So I only make 30-50% of the commission earned.

    So just some quick math…3500 hundred customers that pay 2000/year in premium with 15% commission would be $1,050,000 in commission..my cut would be $315,000/year. A LOT harder than it sounds though. ;)

  • Smokies Hiker 9:04 am on August 7, 2010

    Most of these insurance agents make a commission percentage of the policy type as their pay from an insurance company. This commission varies from company to company. An "independent" insurance agent may represent more than one company for each type of insurance. The commission will likely vary by the type of insurance involved and the state where the policy was issued.

  • Cat804 9:04 am on August 7, 2010

    It’s generally a commission based on a percentage of your premiums.

  • mbrcatz 9:04 am on August 7, 2010

    They are paid commission, from the insurance company, for the policies they sell.

    So, for example, if your policy costs YOU $1,000 a year, your agent is likely being paid – directly from the company, not from your premium – $100 a year to "maintain" your policy. That means, answer your questions, take your payment, make any changes you want. They also have to pay their administrative costs from that – office staff, rent, utilities, office supplies, etc.

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