Can selling life insurance be a side hustle? (2024)

Can selling life insurance be 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.

Is it easy to make money selling life insurance?

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 stressful is selling life insurance?

Insurance sales jobs are highly stressful with little pay guarantee and is an industry with a high quit rate. To be successful in the industry, new agents should understand the skills and attributes that are common among top producers.

What is the hardest part of selling life insurance?

Building trust with potential clients is perhaps the most demanding part of selling insurance. It requires more than just pitching policies and presenting numbers; it's about establishing a personal connection, actively listening to their concerns, and providing them with comprehensive solutions.

Can you be successful selling insurance?

Strong earning potential

A career selling insurance can be a good way to make money. It provides many opportunities to earn a high income with strong potential for growth. Because your income will mostly come from commissions, there can be no limit to how much you earn.

Why I quit being an insurance agent?

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.

Can you 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.

Is selling insurance a pyramid scheme?

As we all know, pyramid schemes are illegal. However, most of the insurance companies we'll talk about today are 100% legitimate. The only downside is that they operate in a way that reminds people of the culture that's rife within pyramid schemes.

What is the risk of selling life insurance?

You won't get the full death benefit back, and, in fact, you're likely to lose most of it. In addition, you will have to pay the broker fees and taxes on the sale.

Why are insurance agents so rich?

Because many insurance agents make money through commissions, this also means that those who have a great work ethic and are willing to go above and beyond to forge strong relationships with clients are rewarded handsomely in the form of higher income.

What is the most profitable insurance to sell?

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.

What type of insurance sales makes the most money?

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.

Why not to sell insurance?

Unpredictable Income

While the insurance industry is stable and the income is lucrative, it can sometimes be hard to plan ahead and know where your next paycheck will come from, since your income may be solely based on sales made.

What should I say in an insurance sales interview?

Sample Answer: I'm interested in working for a company that is dedicated to helping people. I'm also interested in the challenge of selling insurance and helping people understand how it works for them.

Can you sell life insurance by yourself?

Yes, you can sell life insurance from home. You'll need a state license to sell life insurance, and you may need a business license from your state or municipality as well.

How many life insurance agents quit?

The burnout rate for life insurance sales agents is high. More than 90% of new agents quit the business within the first year. The rate increases to greater than 95% when extended to five years.

What is the disadvantages of being an insurance agent?

Cons of working in insurance sales

Many insurance agents are independent contractors, which means they don't qualify for base salaries. Even those who earn a base salary must supplement their income with commissions, which are paid based on sales and achieving certain quotas and goals.

What is the hardest part of being an insurance agent?

Dealing with rejection is one of the most complex challenges of being an insurance agent. Remember that not every prospect will say yes, but you should keep going. Stay positive and focus on the prospects that are interested in what you have to offer.

Is selling life insurance a good side gig?

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.

Is selling life insurance a good income?

As of Mar 13, 2024, the average annual pay for a Life Insurance Sales Agent in California is $102,747 a year. Just in case you need a simple salary calculator, that works out to be approximately $49.40 an hour. This is the equivalent of $1,975/week or $8,562/month.

How do people who sell life insurance make money?

The most common way life insurance agents make money is through commissions. Generally, agents receive front-loaded commissions of 40% to up to 115% of the policy's first-year premiums, although the figure for renewals falls steeply to about 1% or 2%.

Is selling insurance passive income?

After the first year, your commission rate on a policy decreases, but you continue to earn 5% to 10% as long as the policyholder pays their monthly premium. This is the monthly passive income you make without having to do anything at all.

What's the difference between MLM and pyramid?

The main difference between multi-level partner marketing and a pyramid scheme is that in an MLM, the focus is on selling a legitimate product or service, whereas in a pyramid scheme, the focus is on recruiting new members and basically selling a “promise” of a huge ROI.

Which life insurance companies are MLM?

How much can you sell a $100 000 life insurance policy for?

How much can you sell a $100,000 life insurance policy for? On average, you can expect to receive 20% of the policy's face value when you sell it, according to the Life Insurance Settlement Association (LISA). That means a $100,000 life insurance policy might sell for $20,000. However, this is only an average.