As early as 2011, when the world was very different from today, selling life insurance from home was seen as a crazy idea. <! – ->
How do we know?
Because everyone that we talked to about what we did and our idea of working with customers across the country said it would not work. These people never trust to pay big premiums for a policy offered to them from someone they could not see or smell.
But in fact, this site started as an attempt to do just that … to attract customers who would be interested in buying life insurance. And that a large majority of the business would take place in a virtual environment. <! – ->
Until then, our efforts to sell life insurance policies have largely been conducted face-to-face meetings, often in someone's office or at the kitchen table in the evenings after they have finished their work day.
Is it a good career opportunity to sell life insurance?
That's the million question, right? Most people who sell life insurance from home really make it a career. To be honest, selling life insurance on a part-time basis seems like a difficult task as it is not the type of work that fits nicely into shared time blocks.
It will obviously depend on the type of life insurance sales you choose to focus on for your career. Speaking of experience, the time and energy required to train, guide and manage the sale of mixed (term riders with paid supplements) whole life insurance or indexed universal life insurance would be difficult to manage part time. <! – ->
Many times when, for example, you design an entire life insurance policy, there is an extensive telephone call or web conference that must take place. As you may or may not know, these types of life insurance policies have illustrations that need to be signed and recognized when applying.
Most people want to understand what happens before they sign it, which is reasonable. Remember that with cash life insurance, many times people spend $ 20,000 + each year in premiums and they plan to do so for many years.
It's a big commitment and they need to be sure they understand all the pros and cons of the particular whole life policy that you recommend to them.
The same can be said for the index universal life insurance – some even claim that it requires more explanation. It is a matter of opinion, but it certainly requires a slightly different discussion than the whole of life with the same amount of details for the clients to reach a certain level of comfort in order to make a final decision.
Can You Really Make Money Selling Life Insurance?  Yes, you can definitely make money selling life insurance policies from home. It is a relatively simple business depending on the type of life insurance you sell and the needs of your customers. One thing that has not yet been discussed in this article is that many who sell life insurance from home are focused on selling term life insurance.
Selling term insurance from home is certainly less complicated than a fully based life insurance and indexed universal life insurance. Mainly because forward insurance is a very simple product to understand. You pay a reasonable premium to any company that gives you the best price for the death benefit you want to have given your health profile.
This does not mean that it is simple, just less complexity in the product, its design and ongoing maintenance that must be done after the sale. The big challenge with selling only futures insurance is that there is no renewal commission for the majority of agents. This means that you only get paid commission on the first year's premium. After that, you get nothing in compensation.
It's not necessarily a bad thing, just the reality here of selling mostly futures insurance. You need to process a much higher business volume each year and with much greater regularity. To break it down into its most vital activity – you should have a way to fresh wires in the door every day or at least a couple of times a week. <! – ->  We have colleagues who sell life insurance from home who earn barely enough to survive and we have some who earn up to $ 1 million each year. Your level of success will be largely determined by your commitment to the model you choose – the type of life insurance you focus on will dictate how you build your business to be most effective and how much money you will make.
How much does a life insurance agent earn per insurance?
There is no fixed amount that a life insurance agent makes on each policy. Your first year commission is usually a percentage of the annual insurance premium. The percentage may vary from company to company and from agent to agent.
As a rule, you start earning about 80% commission as a new agent. Someone will write to tell us how wrong this number is and that you can earn much more or much less. Agreed, there is no real parity in the market, but the 80% figure is generally true for most new agents.
This means that if you sell an insurance policy that has a premium of $ 1,000 annually, you will receive $ 800 in commission for the insurance. If the client pays every month, you will receive your commission every month. <! – ->
There is also something called a commission advance that some companies will offer, but I would like to warn against it if possible. You can easily end up in a situation where a client stops paying his premium the first year and you (agent) owe the life insurance company for the money advanced to you.
How Much Can You Make Selling Life Insurance?
If you work as an independent agent and get paid as a 1099 entrepreneur, as most of us are, heaven is the limit. How much you can earn depends on how much you can sell.
Can you develop a systematic way to get new leads in the front door, assess their needs, persuade them to move forward and have back-end processes in place to process application, insurance, insurance delivery and get your new client to make the first premium payment? Remember that you will not be paid your commission until the customer's insurance has been approved and they have paid their first premium.
Is the sale of life insurance a pyramid scheme?
This is really an interesting question and one that may have some nuance when it comes to giving the right answer. Here's what google tells us is the complete definition of a pyramid scheme: <! – ->
Based on the dictionary definition, no, selling life insurance is not a pyramid scheme. In fact, this definition is synonymous with a Ponzi scheme. And I can assure you that selling life insurance is not if you do it legally and do not act fraudulently.
On the other hand, based on how we hear most people describe what they think a pyramid scheme could be, life insurance sales could be recognized as such. That is, a company that is largely based on recruitment and that the person who recruited you receives a commission for each insurance you sell.
Usually that piece is paid directly to your "upline" by the insurance company. That person has proven their competence and skill in the life insurance sales business and thus earned a higher commission than you.
Here is an example to illustrate the point:
Tom has been in the life insurance business for 12 years. He's really tired of running around at night and on weekends meeting people at their kitchen table. So he talks to his friend Bob and lets Bob know that he could do really well by selling life insurance. Bob hates his job and wants to make a career change so he will work with Tom.
Tom helps Bob get a contract and is named to some life insurance company. Bob now earns 80% commission on all insurance he sells per his contract. What he may not know is that Tom earns 100% on every insurance, so that means he gets 20% on everything Bob sells. And you can be sure that whoever recruits Tom for the business does something on everything that Tom and Bob sell as well.
The life insurance industry has always worked that way. Most people define it as a pyramid scheme but in reality it really is not. This is actually how most companies work that have a product to sell and distribute. Just think about how many people get a piece of almost every product you buy before it reaches your hand. Life insurance business is no different. Each insurance company has a total commission that will be paid out at the first-year premium – somewhere around 140-150% in total.
Conclusion on life insurance sales from home
Selling life insurance from home is a viable career path and one that is sure to grow in popularity in the coming years. More and more traditional life insurance sales and agencies will disappear and provide space for us who choose to sell life insurance practically from our home offices.
Like all other work from home, it requires self-discipline. , determination and a healthy dose of barley.