Hey
Heard about insurance business and not sure whether it's for you?
Ask all that u want to know here.
Let's us clarify on some of the myths you heard.

Is really insurance agent can earn 5k every month?

Life Insurance or General Insurance? Working in insurance company or as agent?

Yes. Averagely life insurance agents will earn 5k a month after 3 years in the business. (With hard work and be a good follower)

Let's do the maths:
For every investment-linked plan sold, an agent earns 20% basic commission. (Very transparent, because nowadays commission disclosure is provided in quotation)

Average commission breakdown over 6years:
Year 1: 20%, Y2: 20%, Y3: 13.5%, Y4: 18%, Y5: 15%, Y6; 15%

So, if customer A bought an insurance plan of $200 premium monthly.
$200 x 12mths x 20%=$480yearly commission
Assuming 4cases closed a month, in a year
48cases x $200 premium x12mths x 20%=$23,040yearly commission.

If consistently perform as this level, after 3 years...
Year 1 =$23,040
Year 2 =$23,040 + $23,040 (Y1)
Year 3 =$23,040 + $23,040 (Y2) +$15,552 (Y1)

Hope this info helps. And of course, it involves hard work, as you are doing your own business.

so which the biggest life insurance co in malaysia now ?

So i work 3 yrs then only get 5k? What about during the 3 yrs? How much am i paid?

michwaka,

Thank you for explaining for us why we SHOULD NOT buy investment linked insurance...

Dreamer

Is suicide cover by life insurance ?

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Added on July 23, 2011, 9:45 amhhaha to much commission to them

This post has been edited by ivanswk: Jul 23 2011, 09:45 AM

y u say like that? he is explaining how agent make money la nothing wif customer

if i work after 5 years and leave, what happen to my client ?

Great Eastern if I'm not mistaken..

i damn hate insurance agent.

last time my fren (not very close wan) suddenly cold call me and ask me to buy insurance, i told them i dont believe in insurance but that sohai fella still keep calling me (farking thick face fella)...

in the end, i told him to get the fark off.... he is not my friend anymore and he also unfriend me in FB.

In Malaysia currently, Prudential has done 1Billion new business sales last year, being the first life insurance company that achieved 1B in Malaysia.

Anyhow, choosing the right company is important, and signing with the right Agency is of the same important, as when you are new, you'll mostly depend on the team effort to groom you up.

If you want to know more, let us know. you can visit us at facebook.com/echelonadvisory.

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Added on July 23, 2011, 11:35 amAs you do your insurance business from the start of year 1, your commission will gradually build up to that amount.

Based on the example mentioned, in Year 1, your earning by end of the first year, will be approx. $1,900 every month.

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Added on July 23, 2011, 11:37 amHi Dreamer

Do you know insurance agent earn lesser by selling you investment-linked plan? They will earn higher when sell you traditional plan, like whole life, critical illnesses plan, which in the first year, basic commission is 30% above. If you want your agent to earn less, but a retirement plan, like Prudential PRUretirement plan, then he/she only earn 5-7%

Please re-consider.

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Added on July 23, 2011, 11:48 amI guess many of you not really understand how this insurance thingy works. Let me tell you this, after i, myself being "con" after few times, and end up doing insurance myself.

ON SUICIDE CASE
Only after the policy inforce for 12months, you'll be paid if suicide successfully. Why i say suicide successfully? cos if suicide failed, insurance company will not pay you medically on self inflicted injury. so, make sure you think twice before acting.

ON COMMISSION
Based on the commission that an insurance agent earned, it's very transparent, he/she has to provide you the services required when claim or query arise. and bear in mind, agent also has expenses, like buying customer lunch, yearly diaries, greeting cards, petrol to collect your premium, handphone bills etc. They are solely living on this commission.

Imagine this, if you are an agent, you call client A for appointment. Then you don't get to choose the area most of the time, it's always based on the customer convenience spot. Later, when you reach there, where it's always a cafe or coffee house, you buy drinks. And, you know very well this is your business, so if you are agent, you want to spend this money or not? so, end up every time you see customer, you end up incurring cost on coffee. Lets say, you go kopitiam, so, both drinks already cost easily $6-$10.
And, every $100 policy, you only earn $20. If client A sign on the spot, you save. but in real life, you usually follow up with client 2-3 times, so before you see client, already doing losing business.

And, of course, why people still coming in to this business? is mainly because when client is happy with our servicing, they will refer friends or relatives. that's the time you start earning.

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Added on July 23, 2011, 12:04 pmHi Jurlique
Thanks for hating us, insurance agents!

Simply because, whether you believe insurance or not, it's still the best risk management tools in financial planning. Lets say, are you willing to insure me $100,000 with me paying you $300 monthly? And, you have to make sure my family get this $100,000 when i died yesterday. I strongly believe only insurance companies will guaranteed that.

So, It's alright to hate us, because if you don't hate us, your family members won't love us when you are not there to provide financial support.

I'm sure you're already cursing, saying of cos I'll say that, as I'm an insurance agent, and all agents say that. But, being an agent for over 7 years and a client based of over 700, let me tell you this, I saw tears from a mother, when I handed her a cheque of a sole bread winner in the family. I saw a widow cursing us, of why not asking the deceased husband to buy more life insurance. I saw a family moving from big house to smaller house, and I also saw a housewife sending children to other relatives when the husband passed away.

We are proud of what we do as we are more noble than doctors, who only charged you high medical cost to treat you and hoping you coming back again, so he earns his income.

And for insurance agent, when one day no one buy from us, it means everyone has the insurance they need. Without prejudice.

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Added on July 23, 2011, 12:04 pmAs agent, my dear.

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Added on July 23, 2011, 12:11 pmIf you have resigned, your clients will stay remain with the agency leaders, and she/he has to meet up your clients on servicing part. It's very much depends on the agency system.

But honestly, not many agencies have this contingency plan in place, that's why you'll hear stories of your friends' policies with no servicing agents.

PM me when you want to know how our team contingency plan works, pre resignation plan.

This post has been edited by michwaka: Jul 23 2011, 12:11 PM

for example, if me and my spouse die in a car accident and cannot determine who die first, the benefit will go to whose estate? I go to my estate my parent can claim. if go to my wife estate, my parent can of touch rite?

wat life insurance u recommend compare to wholelife, term and endowment?

my parent policies is whole life and more than 30 years plus, most agent I meet mention, no need to pay, let the cash value pay for itself, wat u think?

what is critical years?

thanks

U mean the company will pay me $1900 per month as basic then add insurance commission? then after 3 yrs basic go to 5k? wow not bad..

Hi
first thing first, when insurance company wants to pay you a lump sum, like death claim, they will get the necessary report to determine who died first and it also depends on whether nomination done or not.

(1)Lets say, you have done your nomination to your wife, so your policy is a trust policy. In the event, you died yesterday, insurance co will issue the death cheque to your wife, even though wife passed away, it will form as part of her estate for distribution. Unless you do a will, and put in a clause that your wife has to survive you 30days (for example) in order to get the estate. That's why wealth planning is a cycle, you first start with wealth protection, and later wealth accumulation, wealth preservation and wealth distribution.

(2) basically, i can't just recommend you without knowing what you have. Insurance is a tool of risk management. many agents will tell you to keep buying. But let me be honest, see how much your liabilities, buy at an insurance sum assure that can cover these liabilities when you are not around, then later consider how much your family needs when you are not there to support.
At least, you settled all the loans, and your wife don't have to worry about the instalments, then she just need to work to support herself.

(3) For our parent's policy, you can't just leave it like that, because it'll incur APL (automatic premium loan). You can convert the plan into a paid up term policy. Whole life policy don't have cash value, they only have surrender value when you cancel the policy.

(4) Critical years was introduced many years ago. but Bank Negara stopped it about 10years ago. Let's say, in older days, agents tell you this is a whole life plan, and you only need to pay for 10 years, then don't have to pay, you just convert this plan into term or so. but it all depends on which company and which plan that you sign up. It's very subjective.

PM me if you need more info.

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Added on July 23, 2011, 1:42 pmGenerally, insurance agent is based solely on commission income, that $1,900 is your commission income. but of course, it takes hard work and disciplined.

If you need an insurance career with basic, please PM me.

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Added on July 23, 2011, 1:52 pmMany people have give insurance business a try, and honestly not everyone is suitable. But if you never try, you'll never know the outcome.

I have seen many friends joined, not that they are not good or the business not suitable, it's they don't stay long enough to see the fruits. And many still have the "employees" mentality when they joined the business.

This post has been edited by michwaka: Jul 23 2011, 01:52 PM

what about part time insurance agent, do they receive the same as full time agent? and what are the requirement to apply for part time agent? (sorry if noob question)

Maybe one day, you will know the importance of insurance.. But that will be too late

Same treatment for both full time or part-time agents in all insurance companies. But, as all agents have to register as agents through agency, it depends on whether there's different treatment by the agency leaders to full time or part time agents. Commission wise, all same.

Minimum requirement as an agent:
You must have min.5 credit/passes in SPM.
Passed both PCE (basic life insurance) and Investment linked (if the insurance company issues this type of product) exams.

you just need to select an agency, see the Agency manager, i believe they'll guide you on this requirement.

You're not answering his question..you're just merely promoting the company of insurance you're selling..

I'm not an expert in life insurance, but i assume the size of insurance company is determined by looking at their gross earned premium.

For last year, these are the figures for the GEP for top two life insurers in Malaysia.
1. Great Eastern - RM 4.8b
2. Prudential - RM 3.5b

So I guess Great Eastern is the biggest life insurer in Malaysia.