How Much Do Final Expense Insurance Agents Make?

If you’re interested in becoming a final expense insurance agent, one of the first things you’ll want to know is how much money you can make.

The good news is that there is a lot of potential for income in this industry. However, how much you make will depend on a number of factors, including your sales skills, the company you work for, and your geographical location.

In this blog post, we will take a closer look at how much final expense agents can expect to make.

Generally speaking, final expense insurance agents can earn a decent salary (often between 50-100k/yr). Experience, skills, and location are just some of the factors that will affect how much you make as a final expense agent.

For example, an experienced final expense agent who works in a large city is likely to earn more than a new agent who works in a small town. Similarly, an agent with strong sales skills is likely to make more than an agent who struggles to close sales.

The best way to maximize your earnings as a final expense agent is to focus on honing your skills and building your experience. If you can do that, you should be able to earn a decent salary in this career.

The amount of money you make as a final expense agent will also depend on the brokerage you work with. Some companies offer higher commissions than others, so its important to find a brokerage whose compensation structure and benefits make it financially advantageous to work with them. Make sure to think about take home dollars after expenses since some brokerages will offer a lower commission rate on policies sold because they’ll provide additional benefits that make that trade-off worth while.

Geographical location will play a role in how much money you make as a final expense agent. Agents who live in more populated areas will generally have an easier time finding clients and selling policies than agents who live in rural areas.

Income also varies based on how well you sell. If you’re a top producer, you can make a lot more money than someone who’s just starting out. The sky’s the limit when it comes to how much you can make as a final expense agent.

Of course, it’s also important to keep in mind that how much you make as a final expense agent is not entirely up to you. There are also some external factors, such as the state of the economy, that can impact how much money you bring in each year.

Let’s break it down.

Let’s say you’re a new agent working in a mid-sized city. On average, you sell about two policies per week (which could be done in 2 days per week). Each policy has an annual premium of $1,200. If you’re making a 50% commission, this means that your average weekly gross annual income works out to be about $1,200. Breaking this down further, if you’re paid with a typical advance, per policy, you’ll get $450 in a lump sum payment and second payment of $150 10 months in (keep in mind, that if the client cancels, you’ll have to pay back part of that $450 advance). If you have a 20% close ratio and a $40/lead cost, you’ll have made $250 on that policy. This will lead to an approximate net income of $500/wk. Factoring in a 10% fall-off ratio (which will vary depending on your leads), you’ll likely bring in $450/wk net with a 50% commission.

If we break this down further, it means that you’re making about $30 per hour. Not too shabby!

Let’s also say that, after working with this agency for a year, your commission rate goes up to 60%. You’re more experienced so you’re selling five policies a week. And, they’ve moved you over to a bigger city with more potential buyers. At a $1,200 annual premium, that means you’re taking home $3,600 per week (that’s $129,000 per year!). Not bad! With the above net calculations, you’ll net about $612/wk with extra cashflow 10 months.

This is just an example, and your actual income will vary depending on how many policies you sell, the size of the premiums, and the commission percentage you are contracted at.

It’s important to remember that, while your earning potential is high, your weekly salary is not guaranteed. You might sell five policies one week, and none the next. Holidays, economic downturns, and other factors can impact your sales.

That’s why it’s important to have a solid plan in place for how you’ll generate leads, how you’ll follow up with potential customers, and how you’ll close the sale. The more policies you sell, the more money you’ll make.

Income potential is high for final expense insurance agents. If you work hard and sell policies with annual premiums of $2000 or more, you could easily make over $100,000 per year. Or you could choose to work 3 days a week and make 50k. And if you move to a larger city with more potential customers, that number could go up even higher.

So if you’re looking for a career with high-income potential, final expense insurance sales are definitely worth considering. But, don’t get caught up in the dollar signs. This is a people business, and you’ll only be successful if you genuinely care about helping your clients. If that’s something you can see yourself doing, then go for it! You won’t regret it.

Best Plan Pro helps agents systematize the underwriting component so that they can make more consistent money in Final Expense. Learn more about how we’re changing the underwriting game today.