How I got started in Insurance
I took a few months off of working with Just Energy to renegotiate my contract, during that time I working at a Macy’s in the women’s shoe department. It was a great change of pace from knocking doors and I still made pretty good money, and while the highs weren’t as high the lows weren’t as low, and the highs were still high enough to justify working there. One day, a stranger approached me and invited me to an event that night, and it seemed interesting enough so I decided to go.
The event was essentially just a group interview, held at a fairly large office, with the guy who invited me being nowhere to be found. A different guy talked about how the insurance business worked for an hour or two, going over the most important things:
- Life Insurance pays out a tax free lump sum to a named beneficiary, in exchange for a small annual or monthly payment, known as a premium.
- Annuities pay out an annual or monthly payment, plus compound interest, in exchange for a one time payment, or a series of payments, also known as a premium.
- Carriers pay out a percentage of the first year premium to the agent, provided the agent was licensed in both the agent’s state of residency and the customers state of residency, while also being appointed with carrier.
Let’s say the agent has a 50% contract. They would get 50% of the annualized premium after the first payment was made, regardless of whether or not the full year was paid, under the assumption that the customer will have the policy for at least 13 months, if not for the full duration of the policy.
If the annualized premium was $1,608.48, then a 50% commission would be $804.24
Life Insurance and Annuities provide a lot of value to the client while making sure the agent is properly compensated.
Life Insurance is the fastest way to both create an estate and ensure a transfer of wealth, while annuities are the fastest way to retirement. I tell everyone the following:
You need life insurance in case you die, and an annuity in case you don’t.
🩸 
Leave a comment