Dear Mr. Tan,
If life insurance agents sell only term insurance, how can they make a living? The commission is very small.
Many insurance agents make a living by earning a earning a commission of $30 to $50 by selling a general insurance policy. They are able to earn an adequate income by selling a few policies a day. In their case, the customers buy from their office. They earn commission on the renewal of the policy.
It is possible for life insurance agents to make a living by selling low cost insurance, such as term, medical and accident insurance. They have to change their business model, to be similar to general insurance.
When a life insurance agent sells term insurance, the customer is likely to ask for a large protection, e.g. $300,000 and pay a premium of $300 a year. The commission can be quite adequate.
- ► 2017 (353)
- ► 2016 (828)
- ► 2015 (691)
- ► 2014 (144)
- ► 2013 (501)
- ► 2012 (1269)
- ► 2011 (1873)
- ► 2010 (2369)
- ► 2009 (1654)
02/17 - 02/24
- Motor Car Insurance
- Educating the public
- Early repayment of housing loan
- Tax Benefits in Life Insurance Products
- Refund of premium
- Keep your money in CPF Special Account
- Financial contagion
- Keep your existing policy
- Term insurance covers critical illness
- Singapore in the year 2010
- Savings for your child
- Commission on high cost policies
- Insurance agents need to make a living
- Critical illness
- Insuring a child for critical illness
- Selecting a policy to terminate
- Critical illness coverage for a baby
- Need a bank loan for a retail business
- Achiever Policy
- Dear Mr. Tan, I find your blog very interesting. I...
- Mr. Tan, I was about to sign up a long term saving...
- Wrong address won 4D first prize
- Jetstar to Kuala Lumpur
- High cost Investment Linked Policy
- Travelling to Kuala Lumpur and Bahrain
- Near target of 1,000 visitors
- Timing the market
- Expense ratio of investment funds
- Investing in REITS
- Calculating the yield
- ETF and Unit Trust
- Decline in interest rate
- Regular replacement of policy
- Financial crisis every 10 years?
- Marketing to residents living nearby
- Greed makes monkey of men
- Financial product with a guaranteed return
- ▼ 02/17 - 02/24 (39)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)