Agent Commission
Did you ever wonder how a health insurance agent gets paid? Maybe you think there is “wiggle” room in the price? Possibly, you thougth that if you bought directly from the insurance company itself you could save money? In today’s world of negotiating and bargining, it’s certainly easy to believe that all of the above could be true. Fact is, however, those questions/statements are all completey false.
First of all, the state and federal governments strictly regulate the insurance industry. So, regardless if you purchase a health insurance policy from the company or through an agent, you will pay the same amount of money for the same plan…it’s the law. That’s great information to know the next time you’re shopping for a health insurance policy. Now, you will feel much better about talking to a health insurance broker. You really should because health insurance can be very confusing, and besides, wouldn’t you rather support an agent by purchasing from him/her so they can earn their pay? I certainly would.
Now, I also wanted to cover the details about how an insurance agent gets paid. Why? You might ask. Well, here at Health Assurance Network, we want to be totally upfront and honest about our business. You get paid to go to work and perform a job and so do we. We’re definitely not ashamed to say that we do ok selling insurance. But, you will get friendly, professional service when you call us for assistance and we provide you with an easy-to-use online platform to shop and compare health insurance plans from several different health insurance companies. Insurance companies will pay an aget or broker somewhere between 15% and 25% commission for the first year. So, if your policy costs you $100 per month, your agent will get paid between $15 and $25 per month for the first year. That equates to between $180 and $300 in commission for the agent as long as you keep the insurance policy in force by making your payments each month. After the first year, the agent will usually get paid a small “service” commission. This is usually in the neighborhood of 3% to 7% depending on the company he or she wrote the policy with. Those numbers are all based on the individual health insurance market not the employer sponsored or group plans…those are usually a much smaller commission per individual.
Now you can see that it benefits you and your agent if you purchase from an agent or broker instead of going directly to the insurance company itself. First, you get expert help from the agent or broker and you still pay the same. I think it’s always better to have an actual person that you’re familiar with to speak to about your insurance, don’t you? Second, you’re supporting an individual who is working for a living, not just the company. You can visit our online health insurance quote and service center 24 hours a day, seven days a week. We have courteous and professional staff on hand to be your personal health agent. We look forward to helping you and your family with all of your insurance needs.