Insurance Agent Singapore Salary
The most common and frequent questions that we receive most of the time is how much does an insurance agent earn? Long story short, as an insurance agent, there is no limit to how much you can earn as your salary. Your total salary is based on the commission earned for each policy closed and your basic salary.
In order to help an new insurance agent kick start their career, they can be enrolled into the company’s insurance agent training program (management associate program ) where a fixed amount of allowance will be paid in 24 monthly installments. This allowance is an addition to any commission payable under the adviser’s Agreement. Currently, the allowance ranges from $1,000* to $5,000 per month.
* Applicable for Undergraduate who can either choose to apply for the $1,000 allowance tier, or delay the allowance application till after graduation to qualify for the $3,000 tier.
For A levels graduate, you can choose $1,500 or $2,000. For Local Diploma holder, you will get $2,500 and Degree holder, you will get $3,000.
For those of you who are switching career, you can match your last drawn. For example, if your last drawn is $3,500, you can choose to take $3,500 under the scheme.
The commissions earned for an agent varies according to the type of policies sold & the payment term of the policies. It’s normally split into 2 main components
- First Year Commission
Assuming you just sold a whole life policy with an annual Premium of $2,000.
- First Year Commission will be 50% of $2000, which is $1000.
- 2nd year renewal commission is 25% of $2,000, which is $500
- 3rd year renewal commission is 10% of $2000, which is $200
- 4th to 6th year renewal will be 5%, which is $100 per year.
There are also other policies like Term Insurance which payout lesser or personal accident insurance which have a flat payout of up to 30%.
Agency Schedule of Commissions
Let’s imagine a realistic case study where an new insurance agent in Singapore with an education level of Local Diploma managed to close 2 life policy per month for the first year. He or She would earn $24,000 on commission alone. On top of the allowance of $2,500 per month as a local diploma holder, he or she would have earned a decent amount of $54,000 on his or her very first year as an insurance agent. This amount is almost equivalent to a senior manager in private sector.
Now, let’s assume you set a target of $100,000 as your salary for the first year, then you just have to close 70 policies or 1 every 1.5 weeks. Keep in mind $2,000 is a very low entry level. Client normally opt for higher amount from $3,000 to $5,000 onward.
There is no limit to how much an insurance agent salary should be. It’s up to each individual as to how much income they want to earn and they work towards their goal accordingly.