Can I sell life insurance as a side hustle?
Becoming an insurance agent can be a great side hustle for those looking to earn extra income while helping others and growing personally. With a bit of training and networking, you can start building your client base and earning commissions in no time.
First, life insurance sales jobs are abundant and easy to find. Second, commission percentages are very high compared to other insurance sales, such as health insurance. Best of all, life insurance agents get paid commission renewals for as long as a sold policy is in force. This creates a passive income stream.
Most professionals who sell insurance are paid largely on a commission basis. In fact, most agents aren't even employees of the carrier. More often than not, they're independent contractors who are compensated based on how much they sell, with higher commissions for certain types of products.
You will lose access to the cash value of your policy, and your family will not receive the death benefit when you die. Further, the money you gain from the sale may be subject to taxes and debt collection. The extra income may disqualify you from receiving Medicaid and other financial assistance programs.
One of the biggest reasons that insurance agents quit is the fact that they have unrealistic expectations. The insurance industry is huge, which leads many people to think they can easily make a large income by selling insurance.
Selling insurance can be stressful. It requires long work hours. You can also experience constant pressure to meet different quotas and targets. The highly competitive nature of the profession can create a work environment that often leads to stress and burnout.
Understanding Client Needs
One of the biggest challenges for insurance sales agents is understanding client needs. Your clients will come from all types of backgrounds and will have differentiated financial situations, which means they have unique concerns and needs.
Finding good leads is the lifeline of a career in insurance sales. But in a highly saturated market such as life insurance, it is also the biggest challenge. Life insurance agents often compete for a few qualified prospects.
Life insurance is the most profitable—and the hardest—type of insurance to sell. With the highest premiums and the longest-running contract, it brings in cash over a long period of time. In the first year, agents make the largest annual sum on a policy, bringing in anywhere from 40–120% of the policy premium.
Insurance sales typically don't pay very well at first, but unlike those other occupations, the longer you stick around in insurance, the more income you make. The best agents are the ones with the most and most respected designations, like a chartered life underwriter.
How much can you sell a $100 000 life insurance policy for?
A typical life settlement is worth around 20% of your policy value, but can range from 10-25%. So for a 100,000 dollar policy, you would be looking at anywhere from 10,000 to 25,000 dollars.
One of the primary reasons insurance agents can accumulate wealth is their commission-based income structure. Unlike salaried employees, agents earn a percentage of the premiums they sell to clients. As they build a client base and generate more sales, their income potential increases.
In our opinion, it doesn't hurt that insurance is a lucrative business. You can gain commissions on the plans that you sell, so it's entirely up to you how much you want to hustle. You can also make more money with consistent renewals, so it pays in the long run to have loyal clients.
Doing What's Right Is What Matters… In 2022, 5,738 people obtained a license to sell life insurance in North Carolina. The statistics show that 90% of them will fail within the first year, most of the rest will fail before their 5th year.
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
It is not easy to make a living in insurance, but it is not as hard as you might think. As with any type of sales, becoming an insurance agent can be one of the best paying hard jobs or a terrible paying easy job. Dedicated agents will become successful at insurance sales, just like at any other job.
It isn't the most glamorous profession, and it often gets associated with pushy salespeople that force their products down your throat. But here is the reality: there is a lot of money in the money business! The financial services industry has created more millionaires than any other industry.
- Withdraw or take a loan on the cash value. ...
- Create generational wealth. ...
- Collect dividends. ...
- Surrender the policy (but only if you no longer need it)
- Finding Prospects On LinkedIn. ...
- Networking With Other Professionals. ...
- Start A Blog. ...
- Create A Content Marketing Campaign. ...
- Listing Sites And Directories. ...
- Maintain A Social Media Presence. ...
- Run A Referral Program.
About 100 million Americans are either without life insurance or inadequately insured, acknowledging their need for additional coverage, according to data from LIMRA. A record high of 30% of consumers have indicated their intention to buy life insurance in the upcoming year, also according to LIMRA data.
Who is the greatest life insurance salesman?
Ben Feldman (September 7, 1912 – November 7, 1993) was an American businessman and one of the most prolific salespeople in history.
Yes, selling insurance can be a good career for independent workers with strong sales skills. Sales agents often earn bonuses and commission, so their income potential depends on their talent.
The cash value is slow to grow
But this takes a while, so it can take 10 to 15 years (or even longer) for you to build up enough cash value to borrow against. If you'd prefer an investment that offers positive returns quickly, you'll want to look elsewhere.
1 If you need money, there is an alternative you may not have considered: life settlements. Whether you need cash for high medical bills, a divorce, or other living expenses, it may be possible to sell your life insurance policy to a life settlement provider.
Most businesses don't make any profit in their first year of operating. It could take anywhere from 18 to 24 months for your insurance sales to actually provide profit. Don't feel discouraged. Every small business owner has to clear this hurdle.
