How do you get paid when selling home insurance?
I am considering getting in the insurance field but would like to know a little more before going through licensing. I am trying to establish long term residual income and was told by selling home insurance @ 30years a pop given my clients stay with me I could achieve this. I am bilingual and can generate leads and understand some agents can even work from home part time. Can someone please explain a common pay scale on say a $100,000 home policy that goes for the full 30 year term. Thanks
Homeowners isn’t written on a 30 year term, just year by year – but hopefully, your clients will just keep renewing them.
You’re paid based on the premium of the homeowners policy, not the coverage amount. Premiums for a $100,000 policy vary wildly throughout the country, by location, and you could be looking at a $300 policy, or a $3,000 policy. Standard homeowners commisisons are around 17% or 20% of the premium. So if the policy is $500, your cut is $100. A year. For every year they renew.
Home Insurance | admin, 11 Mar 10
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By PGM, March 11, 2010 @ 12:38 pm
I think the pay scales vary widely. You would really need to talk to insurance companies to find out how they pay.
An easy way to get into the business would be to talk to an agent, who might take you on as a junior partner.
Good luck. I work for people who sell insurance, even though I’m not in that end of the business myself (I’m on staff), and I see the struggles of the new people. It’s slow at first.
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By MoneyMonkey, March 11, 2010 @ 1:20 pm
You must take into account that it is very rare for a person to buy a home and own it for thirty years. Very rare.
References :
By mbrcatz, March 11, 2010 @ 1:31 pm
Homeowners isn’t written on a 30 year term, just year by year – but hopefully, your clients will just keep renewing them.
You’re paid based on the premium of the homeowners policy, not the coverage amount. Premiums for a $100,000 policy vary wildly throughout the country, by location, and you could be looking at a $300 policy, or a $3,000 policy. Standard homeowners commisisons are around 17% or 20% of the premium. So if the policy is $500, your cut is $100. A year. For every year they renew.
References :