How Much Does An Insurance Sales Agent Make In 2022?
ALL YOU NEED TO KNOW BEFORE BECOMING AN INSURANCE AGENT
Last Updated: February 3, 2022
Lately, people have shown keen interest to become insurance agent and how much does an insurance sales agent make. The opportunities of it are limitless. While choosing to become an agent, prospects should properly understand the importance of their contribution towards their agencies. They also need to know the roles that they play in building that agency.
Who is an Insurance Agent Influences How Much Does An Insurance Sales Agent Make
An insurance agent is a representative associated with multiple insurance companies. Their job is to sell policies of related agencies and maintain a strong relationship with clients. Likewise, an insurance agent is also responsible for understanding the needs of the clients and offering them an insurance policy. Further, there are two types of agents: Captive agents and Independent agents.
Captive agents represent a single agency, whereas an independent agent represents multiple agencies. Captive agents can only sell a single insurance line while independent agents can select whichever insurance lines they prefer to sell. The insurance lines an agent can sell consist of many personal lines and commercial lines. Some examples are home and auto insurance, renter’s insurance, landlord’s insurance, truck insurance, and so on.
How Much Does An Insurance Sales Agent Make?Â
As an insurance agent, you will play a crucial role in helping customers get the right insurance. Customers usually seek expert advice while purchasing insurance as they are unsure about which one would be the best for them. Therefore, it is your job as their local insurance agent to provide customers with appropriate policies.
Likewise, the median yearly wage in 2020 was $52,180 for an insurance agent in the U.S., as per the Bureau of Labor Statistics. Therefore, successful agents have the opportunity to earn high. Additionally, renewal policy commissions are a constant passive income. Nevertheless, you need to build up the agency to enjoy the benefits of renewal commissions.
Do you want to know more about the requirements like do you need a degree to work in insurance? If yes, we have the right articles for you.
Independent insurance agency in Jacksonville – How to Start?Â
Some of the popular ways to start an insurance agency are:
Purchase a book of businessÂ
Buying a business book from pre-existing insurance agent/agency could cost you from $250,000 to $500,000, or more, depending on their profitability. It will be similar to owning a sole proprietorship. Also, get E and O insurance for insurance agents in your company to cover any lawsuits that can arise from the errors and omissions from your company’s side.
Independent agent under an agency modelÂ
This option is similar to the first one but allows more flexibility. Agency models aid your independent agency by providing adequate support. You can become an independent insurance agent in Jacksonville and focus on selling insurance products as the agency offers operational assistance. Agents can further choose which model they want: The Franchise Model or FMO Model.
The franchise model provides assistance and support while agents can focus on lead generation and insurance sales. However, The FMO model even though it provides similar operations, it also provides splits between the model and the agents. This benefit both the party. The usual split is 80/20. Finally, you always need to be careful while doing business, so we would like to repeat that the first thing you also need is to purchase E and O insurance.
