As a life insurance agent, you know that helping clients protect their loved ones and secure their financial futures is incredibly important. But while selling life insurance policies can be rewarding in itself, it's also important to consider the long-term financial benefits of your career. That's where residuals come in.
What Are Residuals
In the world of life insurance, residuals refer to the ongoing commission payments you receive from policies you have sold. These payments can provide a reliable source of income for agents, and can significantly boost your overall earnings.
Why Earn Residuals
There are several key benefits to earning residuals as a life insurance agent:
Passive Income
Residuals provide a passive source of income, meaning you don't have to continually sell new policies to continue earning commission. This can be especially useful for agents who are looking to retire or transition to a different career, as it allows them to continue earning income even after they are no longer actively selling.
Financial Security
Residuals can provide financial security for life insurance agents, as they can help ensure a steady stream of income even during times when sales may be slow. This can be especially important for agents who rely on commissions as their primary source of income.
Increased Earnings
In addition to providing passive income and financial security, residuals can also significantly increase your overall earnings as a life insurance agent. This is because residuals are based on the premiums paid by policyholders, which means the longer a policy is in force, the more you stand to earn.
Tips for Earning Residuals
There are several strategies you can use to increase your chances of earning residuals as a life insurance agent:
Focus on Selling Policies with Long-Term Premiums
As mentioned above, the longer a policy is in force, the more you stand to earn in residuals. So, it's a good idea to focus on selling policies with long-term premiums, such as whole life insurance, which can provide a lifetime of coverage.
Build Strong Relationships with Clients
Building strong relationships with clients can help ensure that they continue paying their premiums over the long term, which in turn can lead to higher residuals for you. This means taking the time to understand your clients' needs and concerns, and working with them to find the right policy for their situation.
Stay Up to Date on Industry Trends
To stay competitive as a life insurance agent, it's important to stay up to date on industry trends and changes. This can help you better understand the products and services that are most in demand, and position you to sell policies that are likely to generate higher residuals.
Final Thoughts
In conclusion, earning residuals as a life insurance agent can provide a range of benefits, including passive income, financial security, and increased earnings. By focusing on selling policies with long-term premiums, building strong relationships with clients, and staying up to date on industry trends, you can increase your chances of earning residuals and maximize your income as a life insurance agent.
If you are considering becoming an agent or if you are thinking about changing companies, Real Financial would love to have you on our team.
Click here to get started on your new career path and become an iKon