Income of Insurance Agent – Shocking Facts!!!
What they earn??
First we will see the limits prescribed by the Government regarding the maximum amount of commission that can be given to any insurance agent. The limits prescribed are as follows: According to the Insurance Act, the prescribed payments to the insurance agents are that insurance companies are allowed to pay maximum as per following table: 1st Year – 40% of the Premium 2nd Year – 7.5% of the Premium 3rd Year – 5% of the Premium In case of Single premium policies the commission paid is limited to 2% of the premium amount, in case of pension policies, the commission amount is restricted to 7.5% of the Premium amount in the 1st Year and 2% of the Premium amount in the 2nd Year.
Now we will see what the insurance companies pay:
Normally the insurance companies pay the insurance commission as follows: 1st Year – 35% of the Premium 2nd Year – 7.5% of the Premium 3rd Year – 5% of the Premium In case of Single premium policies the commission paid is limited to 2% of the premium amount, in case of pension policies, the commission amount is restricted to 7.5% of the Premium amount in the 1st Year and 2% of the Premium amount in the 2nd Year. So you can see that the insurance companies pay the maximum amount prescribed in the law, which is a great amount. The income of the insurance agents are very good if they are good at communication skills and are effective in getting more and more customers. The other way it is not always easy to get the customers. So they have also some work to be carried out to get the income. But someone thinking of getting the career as insurance agent is a good field subject to you having good skills that influence people to purchase that product. Recommended Articels
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