How much commission does a health insurance salesperson make on each sale?

Question

How much commission does a health insurance salesperson make on each sale?

Answer 1

On major medical sales, my commission varies from carrier to carrier. Some carriers pay me %20 of the premium for the first year, and then %5 after that. Other carriers pay a flat %10. On large group sales the commission ratchets down to as low as %2 of the premium.

Don

http://mtnhealthinsurance.com

Answer 2

It depends on the product (the agents contract) and how long the client KEEPS the Plan.  I am a Captive agent ( I only work for one company) commission rates range from 23% to 70% in the first year.  For renewal years the range is 7% to 10%.

70% is on small life insurance policies since these are held by the clients the longest and the company only has one payout that is hopefully years and years away.  It sounds like a lot but life insurance that is in the $20 to $30 dollar range still takes the agent two to three hours to prepare and submit including the time spent with the client to determine what if anything is the right policy for them.  The same amount of time is required for a $600 per month health policy paying commision of 23%.

Most Company's have a way of getting the agent most of the first year commision within the first couple months of the policy.  A good agent CAN make $50,000 to $100,000 per year but many choose not do the work neccessary to succeed at that level.