How Much Does My Life Insirance Agent Make On His Policy?
Posted February 24, 2010 – 4:24 am in: term life insuranceI am thinking of buying a Term life insurance policy from my Northwestern Mutual agent and am curious what they make on the policy.
Tags: Agent, Does, Insirance, Life, Make, Much, Policy
4 Comments
I am a captive agent for an insurance co. Life Insurance is not a huge money maker. Term policies, I make 40% of the annual premium and for whole life I make 60%. If he is quoting you term he is not in it for the money, trust me. Sounds like he is trying to get you a policy that meets your needs.
Shop around as Northwestern is not known for their competitive term insurance rates.
Commissions are typically in the 100% range. Depending on setup, your agent may get 50%, with the other 50% going to the agency they work for.
The high commissions everyone is talking about is first year only. After the first year the commission drops to anywhere from 2-5%
For straight term policy, IF it’s his own agency, he gets about 50% commission the first year. If it’s NOT his agency, ie, he works for someone else, he gets about half of that, and the agency he works for gets the other half.
Whole life, however, has first year commission at around 95%. Which is why agents push that harder.