Do you need experience to sell life insurance?

Why is life insurance so hard to sell?

Why Is Life Insurance So Hard To Sell? It's hard to sell because it deals with the topic of death. That's something many people find difficult to consider or discuss. Furthermore, it's hard to keep trying to sell because agents find that they can't make enough money to support themselves.

How much do life insurance agents make per policy?

Typically, a life insurance agent receives anywhere from 30% to 90% of the amount paid for a policy (also known as the premium) by the client in the first year. In later years, the agent may receive anywhere from 3% to 10% of each year's premium, also known as "renewals" or "trailing commissions."

How do I learn to sell life insurance?

You'll need to complete your state's pre-licensing education requirements, pass an insurance licensing exam, apply for a license with your state, receive a National Producer Number (NPN), and then either find a job with a life insurance company or start your own.

Do people who sell life insurance make good money?

As of Jan 19, 2025, the average annual pay for a Life Insurance Sales Agent in California is $113,805 a year. Just in case you need a simple salary calculator, that works out to be approximately $54.71 an hour. This is the equivalent of $2,188/week or $9,483/month.

How much can you sell a $100,000 life insurance policy for?

Just like any other insurance policy, a life settlement payout for a $100,000 whole life policy would depend on your age, health condition, and policy premiums. A typical life settlement is worth around 20% of your policy value, but can range from 10-25%.

Can I be an insurance agent as a side hustle?

You may find that the insurance industry can be a very profitable way to work for yourself, have a flexible schedule, and help the people you work with! A part-time insurance business is a great way to dip your toes in the water and find out if it's right for you.

Can you get an agent with no experience?

“Most agents are willing to take a chance on somebody who has little or few credits, provided that they have something else going for them,” said theatrical talent agent Neil Bagg. “That something else can either be great training, a great ability, or a great look.

What is the hardest part of being an insurance agent?

What is the hardest part of being an insurance agent? The hardest part of being an insurance agent often revolves around the constant need for lead generation and sales. Many agents struggle with the cold calling aspect, where rejection is frequent, and maintaining a steady stream of new clients can be challenging.

How fast can you make money selling life insurance?

In the first year, a life insurance agent can earn anywhere from 30% to 90% of this premium, along with 5% to 10% of premiums paid in later years.

How much do you make on a life insurance sale?

For every policy sold, the insurance agent earns a large upfront commission. This rate can range from 40% to 100% of the first-year premium, the amount the policyholder pays for the policy. The rate is set by the insurance company, and each state has its own commission limits.

Is selling life insurance stressful?

Insurance sales jobs are highly stressful with little pay guarantee and is an industry with a high quit rate. To be successful in the industry, new agents should understand the skills and attributes that are common among top producers.

What are the cons of being a life insurance agent?

Why are insurance agents so rich?

One of the primary reasons insurance agents can accumulate wealth is their commission-based income structure. Unlike salaried employees, agents earn a percentage of the premiums they sell to clients. As they build a client base and generate more sales, their income potential increases.

How many policies does an insurance agent sell per month?

How many policies does an insurance agent sell? According to the financial reports, the Official Number is 2.5 policies per month. However, many people just do it part-time.

Can I make a living selling life insurance?

As a life insurance agent or broker, the most common way for you to earn an income is through commissions. Generally, you can receive front-loaded commissions of 40% to up to 115% of the policy's first-year premiums. The rates for renewals, however, fall steeply to about 1% or 2%.

Which insurance is best to sell?

Life insurance is the most profitable—and the hardest—type of insurance to sell. With the highest premiums and the longest-running contract, it brings in cash over a long period of time. In the first year, agents make the largest annual sum on a policy, bringing in anywhere from 40–120% of the policy premium.

Can I become a millionaire selling life insurance?

Some agents, advisors, and multi-line agents made a million dollars in the first year they worked with us selling life insurance! While most of the others it took 2, 3, or more years to make a million dollars per year selling life insurance.

Is it hard to be a life insurance agent?

“Being an insurance agent is not easy – at least if you want to be a good one,” he explains. “Most people become agents because they think it will be easy to make a ton of money and have a passive income stream. But that is incorrect. To be a successful agent, you must work harder than you ever expected.”

Why did I quit being an insurance agent?

There's two big reasons why insurance agents quit: they don't feel valued, and they aren't given the technology they need to do their jobs well. In addition, managing commissions while hitting performance goals is a stressful part of the job for many insurance agents.

Is there a high demand for life insurance agents?

Job Outlook

Employment of insurance sales agents is projected to grow 6 percent from 2023 to 2033, faster than the average for all occupations.