Scroll down for a discussion on Life Insurance Potential within the Getting Started Selling Insurance.
From everything I have read there is much more potential in selling Life Insurance rather than Property & Casualty. Would this be a fair statement. ...
From everything I have read there is much more potential in selling Life Insurance rather than Property & Casualty. Would this be a fair statement. My son has been selling life insurance for about 2 months now and averages a gross of $2,000.00 per week. Is this normal and if so should he be making more?
From everything I have read there is much more potential in selling Life Insurance rather than Property & Casualty. Would this be a fair statement. My son has been selling life insurance for about 2 months now and averages a gross of $2,000.00 per week. Is this normal and if so should he be making more?
Your son is off to a great start. At this point in time no he probably shouldn't be making more. Often agents do well at the start because of sales to friends and family and then they slow down when they exhaust this lead source.
On life insurance you get most of your compensation up front with no or minimal trails depending upon what you are selling. With P&C the real bread and butter is in the renewal trail. It takes a much bigger book and more customer service to succeed in P&C.
The sum assured for a car insurance or fire insurance is capped at the market value or cost of rebuilding. The sum assured for a life insurance policy theoritecally is unlimited. Generally, it is up to the insurer to decide the amount the risk the insurer is willing to assume.
Furthermore, there is no reason for one to have the second or the third car policy or fire policy if one's property is adequately insured. However, a person can own more than one policy.
That probably explains why there is more potential in selling life insurance.
On the other hand, it is usually easier to sell property and casulty insurance because regulations make it compulsory for people to have car insurance before they can drive their cars on the road. Life insurance agents however are required to be more skillful when selling life insurance products.
What is surprising is he has not approached anyone in the family and I only know of one of his friends. The reason I say this about his friends is that we moved a couple of years ago and none of his friends live anywhere near us. It has my attention because I bust my tail and travel out of town and will be gone 4 to 5 nights a week with an income of approximately 150,000. He works 5 days a week and sleeps in his own bed every night.
From everything I have read there is much more potential in selling Life Insurance rather than Property & Casualty. Would this be a fair statement. My son has been selling life insurance for about 2 months now and averages a gross of $2,000.00 per week. Is this normal and if so should he be making more?
Wow, those are great numbers for a new agent. I like to ask him his tricks and what he is doing. 2,000 a week is great.
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If $2,000 is 'good' how big can one realistically get starting as a new independent agent in the business? I ask because I'm thinking long term, big business..not just home/auto but commercial, liability, d&o and also life, estate planning etc.
Your son must be writing simplified issue policies. Fully UW policies can take 4 to 6 weeks to get issued. I'm not sure I believe he is doing 2000 commission a week only having been in the business 2 months, if he is he is extraordinary.
Sounds like she is going to end up trying to recruit people into NAA in a few minutes. Soon we will all ask her how can we make that kind of money too. She'll tell us about good old NAA.
Your son must be writing simplified issue policies. Fully UW policies can take 4 to 6 weeks to get issued. I'm not sure I believe he is doing 2000 commission a week only having been in the business 2 months, if he is he is extraordinary.
I know of at least one major mutual company that pays out the commission for each app submitted with cash before underwriting, so it's certainly possible (although I wouldn't spend it yet!). It doesn't count until the policy is underwritten, placed, and paid for at least three months.
From everything I have read there is much more potential in selling Life Insurance rather than Property & Casualty. Would this be a fair statement. My son has been selling life insurance for about 2 months now and averages a gross of $2,000.00 per week. Is this normal and if so should he be making more?
Like a couple of people have already said, its all about the numbers. How many people do you need to see to get 2 apps a week? probably varies from person to person but sounds like your son is doing great!
Making $2,000 a week is a pretty good goal. Of course it depends on the life product and commission schedule.
I know NYL will pay 50%-55% FYC for most life products. That means he would have to do 2 apps at about $2000 annual premium to make $2,000 a week. or 4 apps for $1000 = $2,000
My 2 cents.
I tend to target how much in Monthly Premium I need per week. Such as, $250 of MP, is one app for $250 or 5 for $50.00. $250 just seems easier than $3,000 of annual per week.
App count helps my motivation, when I am looking at my pending book for the month. I like to try to fill the page. So if I hit the my premium number early I have another target.
App count helps, But Premium pays the bills.
"It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change." Charles Darwin
Like a couple of people have already said, its all about the numbers. How many people do you need to see to get 2 apps a week? probably varies from person to person but sounds like your son is doing great!
Making $2,000 a week is a pretty good goal. Of course it depends on the life product and commission schedule.
I know NYL will pay 50%-55% FYC for most life products. That means he would have to do 2 apps at about $2000 annual premium to make $2,000 a week. or 4 apps for $1000 = $2,000
Let's not forget that if someone is BRAND NEW to insurance sales and a career shop, they'll likely get a "bonus" on top of the 55% for their first 3 years with that career shop.
But don't spend that money. Invest it wisely in your career and save it for the rough months.
Let's not forget that if someone is BRAND NEW to insurance sales and a career shop, they'll likely get a "bonus" on top of the 55% for their first 3 years with that career shop.
But don't spend that money. Invest it wisely in your career and save it for the rough months.
Very true! obviously if you can average $2000 in weekly commission you are in good shape AND you would get an additional % on top in the first couple of years if you are with a "career shop".
I would guess that the newbie making $2000 a week has not gone through the whole cycle yet. No doubt this amount will diminish when clients gets rated up, doesn't follow through, etc.
If he's getting advances, and chargebacks are deducted from advances, then things will change downward in the next few months, assuming this is FE sales.
Of course if charge backs are NOT deducted from advances then he's ok.
Life Insurance Potential
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