How insurance brokers get paid

@thesquidofinsurance

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Selling · Agency / Service

life insurance brokerage

Why it worked

The video breaks down a complex commission structure into easily digestible steps with clear calculations, making it informative and valuable for aspiring agents.

Summary

This video explains how life insurance agents and brokers are compensated. It details how new agents receive a nine-month advance commission, with a portion paid upfront and the remainder after nine months, plus ongoing residuals.

Structure

1Introduction to how insurance brokers get paid
2Explanation of the nine-month advance commission structure
3Calculation of upfront commission on a sample policy
4Calculation of remaining commission after nine months
5Explanation of residual commissions
6Summary of total earnings and call to action

Call to action

DM me.

On-screen text

How insurance brokers get paid $100 x 12 = $1,200.00 $1,200 x 0.75 = $900.00 $900: $765.00 $300 x 0.85 = $255.00 $765 + $255 = $1,020.00

Original caption

How insurance brokers get paid #sales #lifeinsurance #remotesales #highticketsales

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Transcript

Since 90% of y'all don't know how insurance agents get paid, we as life insurance agents get paid, here's how it works. So we as both agents and brokers get paid a nine month advance. Being a new agent, you get paid 85% commission of that nine month advance. So for example, if you sell a policy that is $100 a month, the annual premium would be $1200. You would multiply that by 0.75 to get the nine month advance, which would be $900. Then you multiply that 900 by 0.85, which is your 85% commission, take home on the sale. Also after your books for nine months, you get the last three month after that nine month period. So all in all, on a policy that is a hundred dollars a month, a new agent at 85% commission takes home $1020 on that sale. Also after that 12 month period, agents also receive residuals, which is anywhere from 3 to 8% of the annualized premium per year. So that's how we as life insurance agents get paid. And if that interests you, DM me.