I believe mortgage insurance is basically term insurance.
How much does an agent pocket for selling MI?
… how much is the average first year premiums etc
2 Comment(s)
Mortgage insurance is a term policy with a decreasing payout. It costs MORE than a straight term policy, so I don’t sell it. I mean, what’s the point?
Premiums depend on the policy limit and age of the clients. So assume 30 year old, healthy, 25 year term, $200 a year, first year commission, maybe $175, second year commission – $10.
You can’t make a living off of it – the continuing commissions are too small.
Considering the mass mailings I get since I bought my house I’d have to say that you wouldn’t get paid jack in commissions. You’d have to make up for the lower payouts with A LOT of sales volume.
Admitedly every company is defferent and would have differing levels of payouts for 1st year and then residuals, your better off just going ahead and getting an Life, Health Accident license and then go join some big insurance company (or even a supplemental insurance company).
In theory the policy may be good for the first couple of years for the insured but over the long term they (and you) would be better off if you sold them a regular Term insurance policy (or in some situations a Permant Policy).
Mortgage insurance is a term policy with a decreasing payout. It costs MORE than a straight term policy, so I don’t sell it. I mean, what’s the point?
Premiums depend on the policy limit and age of the clients. So assume 30 year old, healthy, 25 year term, $200 a year, first year commission, maybe $175, second year commission – $10.
You can’t make a living off of it – the continuing commissions are too small.
mbrcatz17 | Apr 30, 2008 | Reply
Considering the mass mailings I get since I bought my house I’d have to say that you wouldn’t get paid jack in commissions. You’d have to make up for the lower payouts with A LOT of sales volume.
Admitedly every company is defferent and would have differing levels of payouts for 1st year and then residuals, your better off just going ahead and getting an Life, Health Accident license and then go join some big insurance company (or even a supplemental insurance company).
In theory the policy may be good for the first couple of years for the insured but over the long term they (and you) would be better off if you sold them a regular Term insurance policy (or in some situations a Permant Policy).
Crighton | May 1, 2008 | Reply