Is The Service From A Life Insurance Broker Free?
Posted October 29, 2009 – 10:37 am in: structured settlements FAQHi, can you tell me if using an independent life insurance broker is free and get paid by commision just like a Real Estate Agent?? Thanks
Tags: Broker, Free, From, Insurance, Life, Service
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The service of an insruance broker is the same as the services of a Reasl Estate agent. Both do not charge a consultation fee and they are compensated by a commission based on the size of the sale when they make one. The biggest difference is that the commissions an insurance borker recieve come from the company, and do not come out of your pocket. IE: a Real Estate Agent will take a % of what you sell your home for, meaning you don’t actually get all the money that your home sold for. An isurance agent gets paid out of company profits, so when you get your claim amount or cancel your policy, you get the full amount…no commissions are deducted for the agent.
The commission amount varies depending on the company and the actual product.
they usually get paid by commission from whatever company they sell you something from.
if they sell you whole life insurance, for example, their commission may be as high as 80% of your first year’s premium.
On a homeowners insurance policy, the agent might get the entire first year’s premium as “commission”. So , yes, it is a bit like a realty broker..