Is it smart for an 18 year old to sell life insurance?
Is it smart for an 18 year old to sell life insurance?
I am 18 as said before, i would like to get my license to sell life insurance and become partners with my uncle who is an accountant and also sells some types of insurance.. is it worth it? how do insurance brokers make money?????
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5 Responses
2.1.2010
Best Answer – Chosen by Voters It is unlikely people are going to want to purchase life insurance from an 18 year old. You can work for your uncle and learn the ropes, however it may be a few years yet before you can start building a portfolio of clients. People your age aren't buying life insurance, and people older than you don't want to buy from someone with no life experience.
2.1.2010
Insurance brokers earn commission from the policies that they sell based on annual premiums. For example, one company may pay a commission on a term policy that is 75% of annualized premiums. Therefore a policy that costs $1000 per year would earn you a commission of $750 dollars. Other life insurance companies pay commissions as high as 100%+ of annualized premiums. It all depends upon who your IMO (Insurance Marketing Organization) is. From personal experience I recommend that you sell a mix of not just life insurance, but also focus on disability insurance, health insurance and critical illness insurance. Life insurance doesn't typically pay residual income, so once you sell it, you are always looking for your next buck. However these other lines of insurance, while commissions pay out at lower rates, offer you the opportunity to start building a tremendous income over the long term.As an 18 year old, you may confront some challenges earning respect from older customers, however, you can work past that if you have a superb knowledge of the insurance industry, and are passionate about the subject of insurance. Insurance can be extremely exciting stuff when you start to think about the affect that it can have on your customers lives. Additionally, the sales and people skills you will learn will help you with no matter what choice of profession you decide upon in coming years.http://www.portland-lifeinsurance.com/ Source(s): Personal experience in the insurance from years in the insurance industry.
2.1.2010
Go for it, man. It sounds like a good opportunity to me.Only you will be able to answer your question, after you have had some experience in the insurance business.Insurance brokers make money by earning First Year Commission (FYC) on new policies sold., Also, Renewal Commissions are paid on policies that have been on the books for a year or longer. There are also bonuses paid, depending on production, persistence, and quality of business.Being in the insurance business requires one to be a self-starter, persistent, putting in long, late hours, at least in the first several years.The rewards are great, but it takes time to build a book of business. It takes lots of planning and follow-through. If you Fail to Plan, you Plan to Fail.Remember this. Always be honest with your customers. Always tell the truth, and, you'll never have to remember what you said.Best wishes. Source(s): Retired agen, 30 yrs.
2.1.2010
First you must have an interest in any profession you go into.You should start by working in his office learning about the business.Learn as much as you can and also you must be a people person and be able to communicate well with those you don't know. When your old enough to study for the state exam then go for it if you are interested. It is worth it. Our insurance man told us he sold insurance because it is the easiest thing he had done and the money was really good. There will always be a need for insurance brokers.I Most kids your age aren't thinking about their future as seriously as you seem to be doing.I commend you.
2.1.2010
It is a great opportunity for you as least to get a license and learn the ropes.Opportunities do not come by everyday. This one is at least worth the chance. If it doesn't work out you have nothing to loose and you will learn by the experience.Good Luck.