Insurance Agent Commision and Remuneration
By now, you have understood that becoming insuarance agent is not a very challenging task . Once, you have passed the test and acquired the business insurance license, you can start earning by means of commision earned for selling insurance products to customers. Insurance agents can have very staedy and great growth prospects working in the industry. They can earn a steady, stable income in addition to this, they can hold managerial positions and acquire a management degree. If they continue their venture as an insurance agent long enough they can also become agency superindent or any such upper higher manamgement level positions.
The commission structure for the Insurance Agent is threefold:
- Salary + Bonus
- Salary + Commission
Ideally, a commission is the most common reward type for an agent of insurance policies with appropriate experience in selling insurance. The amount of commission depends upon two factors:
- Risks Covered in the insurance product
- Type of Transaction: Renewal or Fresh Purchase of Policy
Bonuses, on the other hand, are rewards given to insurance agents when the employee achieves/over-achieves the targets of profits/sales set out for them.
Besides above-mentioned remuneration policy, Insurance agency offers extra benefits to insurance sales agent by providing insurance education, training to qualify for licensing, independent office space and clerical support services.
Independent insurance agents may not get extra benefits but are paid higher commission helping them pay their expenses to market insurance. Insurance agents who are involved with financial planning receive fee for their services instead of commission.