Many people are interested in the salary of an insurance agent. Commission is the main remuneration for most agents in Singapore. Let me share with you how am I being paid for the past few years in the insurance industry.

Commission Structure

Insurance agents in this scheme are being paid for every policy sold. This is the scheme that my entire agency is in. Personally I find that this scheme is more exciting, challenging and it definitely motivates agents to work hard for their income.

So how much can an insurance agent make?

Let us do a calculation. Let’s assume:

• Insurance agent closes 1 case per week, 52 cases per year
• Each premium size is $2,000 annually
• Commission for the
  • 1^st  year is                 50% of $2,000
  • 2^nd year is                 25% of $2,000
  • 3^rd year is                 10% of $2,000
  • 4^th to 6^th year is          5% of $2,000

Therefore the agent will earn, excluding bonuses

• $52,000 (52 X $1,000) in the 1^st year
• $26,000 in the 2^nd year
• $10,400 in the 3^rd year
• $5,200 in the 4^th to 6^th year

From here, it is not hard to imagine how the agent’s income can increase substantially every single year just by selling 52 policies!

For example, in the 2^nd year, his total commission can be $78,000 ($52,000 + $26,000).

For a successful insurance agent 3 years into his career, he can expect to command a 6-figure commission pay check yearly.

Sky is really the limit

There is really no limit to how much you can earn. It all depends on hard working, discipline, perseverance, positive attitude and being focused in your work and goals.

An insurance agent commission scheme is directly related to the effort that you put into your business. It is definitely suitable for people like me who likes to be paid and recognized accordingly.

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