In an insurance career, there is no limit to how much you are able to earn. Your income is based on the commission earned for every case closed. When you are producing at a high level, your income will be at a high level. How much you want to earn is therefore determined by yourself.
It is important to understand how we calculate commissions. With this understanding, you are able to do some math on your own and determine if this career can provide you with the desired income. Let’s start by understanding how commission is being computed.
Commission is normally split into 2 main components:
- First Year Commission (FYC)
Let us assume that the product that you have sold is a whole life policy which has the following commission structure:
|Year||Percentage of Premium|
|4 to 6||5%|
So if you have closed a whole life policy with an annual premium of $2000,
- Your first-year commission is $1000
- Renewal commission in the 2nd year is $500
- Renewal commission in the 3rd year is $200
- Renewal commission from the 4th till 6th year is $100 yearly
If you want to earn $100,000 in the first year, all you need to do is to close 100 cases with an annualised premium of $2000. It is all that simple!
In addition to commissions, there are *Bonuses and *Long Term Incentives that you can earn. These extra 2 components can significantly boost your income too!
Start the insurance career with an end in mind. Determine how much you want to earn and work diligently towards your income goal.
* Terms & conditions apply