how much do insurance agents get paid?

[minnie]

i have a friend from my diploma days in college and she apparently bought a Mercedes C class with the money she earns from her insurance sales job, so it got me wondering how much they earn?

For more context she just graduated 2 years ago right after her diploma and started working in this job about a year ago (according to her IG posts, timeline might fluctuate). She also works in a popular insurance called N*

 

[dongchau123]

@minnie most agencies do this:

for every rm1000/year you pay to insurance company per year, they get rm250-300 for first 2 years. then rm200 for 3-4th year and rm150 for 5th year.

so if you are paying rm3000 per year, the agent takes about rm1000 for the first year. thats why they always push for life / investment plan.

if your friend lucky, find many big customer, then happy lo

 

[minnie]

@dongchau123 Ahh I see, thanks this clarifies a lot. From what I know or what she’s posted on IG she normally does more funeral services like pre booking caskets and etc. so would that earn her more?

Genuinely so shocked how someone this young can afford a C-class out of nowhere

 

[dongchau123]

@minnie that prebooking thing is with another company right? not insurance. should be company like Nirwxxx. they sell land for the burial too right? commission quite high i heard.

 

[minnie]

@dongchau123 Yeah, she works under Nir and i think she specialises in the funeral aspect of it.

 

[puremgtowpaladin]

@minnie Thats not insurance agent. I have friends doing N too. Quite similiar to insurance agent and how they operate la, just selling different products

 

[c0ndy]

@minnie Dude that is Will Agent, probably Rockwill or Nirwana. Cant tell you about this as never experience before but heard it quite high commission.

 

[redmackman4ever]

@minnie My IG gets at least 2 ads per scrolling of youngsters achieving their sales comm in property, insurance etc and getting their first Mercs or whatever, no longer shocking.

One of my college classmate also joined Nirvvvv, a year later last I’ve heard he can make about 11k monthly.

Another classmate who joined A 1 A is now able to travel every month, so yeah

 

[romoes]

@minnie If your friend works with nirvana they definitely do make a killing. I recently buried my late father in a crematory spot (a small box area) in a memorial park and it cost us 25k and the prices vary depending on where the spot is. (Eye level is most expensive).

This is just for crematorium, for the lavish spenders u can option for burial, a nice spot that is on elevated ground which starts from 30k all the way to 250k. My aunty was buried in a burial land for something close to 170k.

The salesperson that handled the sale of our crematory spot drives a 2022 yellow Mercedes a class sedan and he is only 26 so u can imagine the veterans who’ve worked in the field much longer.

 

[dubois]

@minnie They get paid big fat commission if they sell shitty insurance policy to you. Shitty in a sense that you pay high premium for very low coverage, because the policy is tied to some investment garbage that underperform the benchmark over time. If Malaysians are a bunch of smart people, they would just buy term life at the lowest premium for the highest coverage while investing the rest of their money on index fund or blue chips, then insurance agents would not be driving a Merc or a BMW. You don't know you are actually funding their lifestyles.

Second hand Merc C class veli cheapo wan. No need to be jelly.

If sell burial plot, then different story lor. Burial plot is a ripoff these days. Developer buys cheap land at cheapo price per sqft. Then build an estate to store burial urn at many thousands per sqft. Untung besar lor. Much more untung than property developer. Imagine 1 sqft of space can be used to build a shelf that can store up to 6 burial urn. Say each "unit" is priced at RM2,400 average, then total price per sqft is RM2,400 x 6 = RM14,400. The developer baru saja bili for RM100/sqft or RM250/sqft after construction. So untung gila babi lor. So company can give out fat big commission lor.

Chinese people mah. They always know how to sembelih the fellow Chinese mah. And some more most Chinese people are pendidikan jenis kebangsaan cina also mah, so IQ below average cannot buat kira-kira correctly, so readily kena sembelih lor. So company untung besar. And agent also untung besar.

 

[aiden236]

@dubois Sometimes I hear its bcoz burial land on a hill, so got "overlooking nice view" to be buried in.

 

[dubois]

@aiden236 That one is just excuse by the company to overcharge for the "unit", because vacant land in outskirt area far away from the city and general public infrastructures usually is selling at very low dirt cheap price, like below RM20/sqft. That translates to much bigger profit margin.

 

[solo81]

@dubois +1 burial plots salespeople really know how to exploit SJKC education. Their sales pitches are more comical than an insurance agent's.

 

[greenrock]

@minnie Your friend is just the one of out 20 then.

The rest of 19 either get subminimum wage pay or outright quit after 2 years.

It's an overly glorified field. They specifically focus on the outlier successes and keep hush hush about the failures or even the average Joe's.

 

[c0ndy]

@minnie Most people overlook insurance because they see them as a salesperson or, at best a consultant, according to them.

Insurance Agents who survive 2 years in the insurance industry average income RM8000/monthly, survive 10 years average income RM50K/monthly (Medium Achiever Group)

High Achiever Group Average income who survive 10 years RM200K - RM500K/monthly.

This group usually quite wide, either they are Lifetime TOT, MDRT or Agency Manager, or Unit Manager.

 

[minnie]

@c0ndy I see! I normally brush them off as another MLM seller. It's because of the way they advertise their job. I just looked at my friend's profile and how she advertises her job is on par with a 'get rich quick scheme.' Which I also wonder why they need so much manpower in the first place? Cause if their pay is so high how can the company afford so many people

 

[d33smth]

@minnie Because its mostly commission based. the unit & agency manager will also get a cut from each agents sales. Their pay is based on the money paid by customer. Not the insurance company itself. After a year working, theres plenty of bonuses as well. This is when they get lum sum big payment and pay big deposit for cars normally. They will also get free trips to overseas when reach certain sales targets. The commission will be reduced after a few years as mentioned above so if they want to keep their lifestyle, they need to keep on finding new customers or become managers to keep the income flowing.

 

[lilliana]

@c0ndy

survive 10 years average income RM50K/monthly (Medium Achiever Group)

dafuq..

 

[yodas_prodigy1]

@c0ndy Im gonna disagree with this. The income amount is always depending on how many customers you have. Dont mention who have bought from you a few years ago does not mean you are still getting the commission. You are just saying 1/10 people earning this figure.

 

[lynq]

@minnie 1st and 2nd year 25% for selling ILP.

It's a simple concept. Sales job. More you do, more you earn.

You sit in your office, rain or shine, you get the same pay. You exceed expectation...? Othrr ppl get 4%, you get 5% increment. Bonus... other ppl get 1 month, you get 1.25 months.

Sales job, if you perform, you can 2x 3x your earnings... it is reallyvjust how hard you work.

Sales job is also not for everyone. You need to have temperament for it