How To Make A Million Dollars Selling Life Insurance? Complete Guide

Helen Skeates
Helen Skeates
18 min read

Do you wish you knew the secret to making a million dollars selling life insurance? Excellent, since we have compiled a list of all the reasons and means by which that is possible. Read on to gain a comprehensive understanding of the topic at hand.

You probably already know this, but we’ll tell you anyway: becoming a millionaire doesn’t happen overnight. We hate to be the ones to dampen your enthusiasm, though. The industry you’re getting into is really cutthroat. However, being a millionaire is not something you can accomplish suddenly. But if you follow some solid advice, have some determination, and put in the effort, you can succeed. In a relatively short amount of time, you can make history by becoming the first.

About Life Insurance

A life insurance policy is a contract between two parties. A large sum will be paid out to the policyholder’s heirs after the policyholder’s death, as promised by the insurer in the policy. In exchange for consistent premium payments made throughout the policyholder’s life.

Main Types of Life Insurance

Term Life Insurance

According to the Insurance Barometer Report, term life insurance is the most purchased type of life insurance (71%) due to its low cost and high popularity.

Who needs a million dollar life insurance policy? | Bankrate

Term life insurance provides protection for a predetermined time period and has consistent premium payments throughout the policy’s lifespan. Common options for coverage duration include 15, 20, 25, and 30 years.

If you pass away during the policy’s effective period, your heirs will be eligible to receive the death benefit in a tax-free payout.

You may be able to extend your coverage for an additional year after the initial term ends if your policy has assured renewability. However, the annual renewal fee will increase over time.

Permanent life insurance

There is no end to the protection provided by permanent life insurance. The reason it costs more than term insurance is that it:

  • Can potentially last for the rest of your life.
  • The value is compounded over time.

Over the course of the policy’s existence, the cash value component grows without incurring taxation. It’s the policy’s equivalent of a savings account. The cash value of a life insurance policy can often be withdrawn from, or used as collateral for, a loan. After paying any applicable surrender fees, you will receive the cash value of your policy.

Don’t expect to get access to a large sum of cash straight immediately if you have a policy whose cash value builds steadily over a number of years. The predicted cash value will be displayed in the graphic that accompanies your policy.

Permanent life insurance comes in a few different flavors:

  • The death benefit and cash value component of a whole life insurance policy are both assured and fixed. Dividends from whole life insurance contracts can be used to lower premiums or withdrawn tax-free.
  • Many people prefer the more freedom that comes with a universal life insurance policy over that of a full life one. In some cases, you may be able to make adjustments to your death benefit and premium payments. Depending on the specifics of the policy, cash value can grow over time with universal life insurance. One type of universal life insurance, known as index-linked, has cash value that rises and falls with an index like the S&P 500. Investment subaccounts are normally available in a variable universal life policy and can be selected and managed by the policyholder.
  • Small whole life policies, with death benefits typically between $5,000 and $25,000, are typical for burial insurance. The sole purpose of burial insurance is to pay for one’s own funeral and other final expenses.
  • This type of coverage is also known as “second to die life insurance” or “survivorship life insurance,” and it covers the lives of two people (often a married couple) under a single premium. When both policyholders have passed away, the beneficiaries receive the death benefit. Survivorship life insurance is typically used as part of a bigger financial strategy to pay for federal estate taxes or support a trust.

Life Insurance Agents

I’d be happy to talk to you about your responsibilities as an insurance broker. Let’s examine how to make a million dollars in the life insurance business. To begin, selling insurance requires a valid license. Then you can decide whether or not to sell insurance plans on behalf of a corporation. Another option is to push yourself to expand your potential.

Insurance agents that work for themselves and represent multiple insurers. Additionally, you will be paid on a commission basis, so the more clients you bring in, the more money you will make. The truth is, the level of success you have in this area is directly related to the amount of effort you put forth.

How tough is this career?

Like every other profession, this one has its share of highs and lows. But if you can become a famous agent, you may expect to make a good living from it. Unfortunately, getting to the point where you can be that agent is not easy. This, unfortunately, is a major contributor to the high rate of burnout among professionals in the sector. Since more than 90% of new agents leave the industry within their first year, this is a serious problem. When you do break through in this industry, maintaining your success is the next challenge.

Pros of this business

The following dismal information has probably made you rethink your choice. To this you may add, “can I make a million dollars selling life insurance?” Absolutely, go for it! We’re not completely devoid of virtue and strength. Life insurance sales provide several advantages and benefits, including those listed below.

Advantage#1. There are lot’s of insurance sales job

The life insurance sales industry is booming, so there’s no need to hustle or battle for a position. Don’t stress out; there are plenty of insurance firms that hire anyone who applies, so you have a good shot at getting recruited. When it comes to this field of work, everyone is on equal footing. They only need to be themselves and make an impression.

Advantage #2. You don’t need to go to college to be an insurance agent

If you choose this line of work, you won’t have to worry about amassing a mountain of debt right away. A high school diploma is the only formal education needed. A simple license course is required just in a handful of states.

Advantage #3. The percentage you get is higher

Additionally, the commission rates for life insurance sales are far greater than those of any other type of insurance. In addition, you get to decide how and when you conduct your work. Someone who is paid an hourly wage, for instance, is under no obligation to work a set number of hours per week, and can choose to work as little or as much as they choose and still receive the same wage. But that’s not the situation with you.

Advantage #4. The recession got nothing on the insurance industry

The COVID-19 pandemic is one such instance we can provide. Many companies were forced to close their doors as a result of the current economic climate being too unfavorable for a successful turnaround. Unfortunately, however, health insurance was still essential. And this is why it’s so important to put your resources into a company that can weather a downturn in the economy. If you’re curious about the demand for life insurance agents, here’s an article that could help: Five advantages to working with a life insurance agent.

Basic Life Insurance: What Is It?

The Golden Way

Can you explain what passive income is? It’s fine if you’re not, actually. Just keep this in mind; it’s the real key to financial success. We are, in fact, making this claim regarding passive income. Read the other post to find out what passive income is and how to generate it. Whatever the case may be, allow me to provide a brief definition:

What is passive income?

Passive income can be defined as money earned with minimal active effort. Those that are wealthy do not have to worry about spending all of their money. They have instead established a profitable structure. And insurance is a viable option because of the ongoing revenue stream provided by policy renewal premiums.

The logic behind this is as follows. Take the case when you’ve successfully persuaded a client to invest in a whole life insurance. Once they start paying their regular rates, they will be covered. There will be a renewal commission for you to collect. This commission may reduce in percentage terms each year, but even so, you’re already ahead of the game before you’ve had your morning coffee. Here are some ways to cut costs on life insurance while still providing excellent service to your clients.

How to Choose the Right Life Insurance Policy Type

It can be overwhelming to sort through all the life insurance policies out there to find the one that’s perfect for you.

Choose between term life and permanent insurance as a first step.

If you only need life insurance for a set period of time, term life insurance may be the best option for you. For instance, if you’re interested in “income replacement” insurance that would pay out during your working years in the event of your death.

If you are on a tighter budget, term life insurance is a smart option to consider. Term life insurance is cheaper than permanent life insurance since it only offers coverage for a set period of time and does not build cash value.

Your requirement for life insurance may fluctuate as you progress through life’s stages. One common feature of life insurance policies is the option to switch from a term to a permanent plan. Options may vary by policy and insurance provider. With a term life conversion, you can make the transfer to a permanent coverage without having to reapply or undergo a medical exam.

A permanent life insurance policy, on the other hand, will remain in effect for the rest of your life. Consider permanent life insurance policies if you value saving money over the long term. However, if you’re simply interested in buying a permanent policy for the cash value buildup, you could be better off placing your money into a savings or investment vehicle and skipping the life insurance and charges that come with a permanent policy altogether.

Moreover, beneficiaries aren’t usually expected to use cash value. When a policyholder dies, the cash value often reverts back to the life insurance provider. Your beneficiaries will receive the death benefit only; they will not receive the cash value of the insurance. However, for a larger premium, certain policies can provide both the death benefit and the cash value.

How Much Does Life Insurance Cost?

The price of life insurance can fluctuate widely based on a number of variables. How much you spend on life insurance will depend on a number of factors, the most important of which is the sort of policy you select. For the same amount of protection, term life insurance, for instance, costs far less than whole life insurance.

Listed below are some of the most influential aspects of life insurance premiums:

  • Age. Insurance premiums are cheaper if you obtain coverage when you’re younger. The risk of dying is lower, therefore the conclusion.
  • Sex. According to the National Center for Health Statistics, females have a life expectancy that is nearly five years higher than boys. That’s why most males pay more than women for their life insurance (except in Montana where insurers must provide gender-neutral life insurance rates).
  • Health. It’s no secret that the state of your health plays a key role in determining how much you’ll pay for life insurance. The insurer will look at your medical history and current health status to determine how long they think you have to live.
  • Lifestyle. Insurance companies may charge you more for life coverage if you have a criminal record, a history of reckless driving (such as a DUI conviction), or engage in particularly high-risk work or hobbies (such as scuba diving).

How to Choose a Life Insurance Coverage Amount

As a general guideline for determining the appropriate amount of protection, one should:

  1. Make a list of everything you need money for, from living expenses to income replacement to the cost of higher education for your kids.
  2. Deduct from that sum the sum your loved ones would need to cover final expenses from resources like savings and life insurance. If your spouse will require retirement funds down the road, don’t include them.

This is the amount of life insurance you should purchase. It could seem excessive if you’re trying to replace lost revenue over a long period of time. Nonetheless, it doesn’t harm to get quotations for life insurance at no cost.

Even if it turns out to be too expensive, you can still lock in a low rate by purchasing as much as you can right now. You can always make more purchases along the road, but keep in mind that your future premiums will reflect your increased age and any preexisting conditions you may have.

Use this tool to determine the appropriate amount of life insurance for your situation.

How to Get Life Insurance Quotes

15% of the population believes they cannot afford life insurance, per the Insurance Barometer. However, many buyers tend to exaggerate the actual price. Getting life insurance quotes from multiple providers is the best method to determine your true cost. It doesn’t cost anything to get a quote. Based on your age, health, and coverage needs, an expert life insurance agent will know which firms often offer the most competitive rates.

Age, health, cigarette use, family health history, driving record, and potentially harmful employment or hobbies will likely be among the topics covered in the interview.

When you find a good price on a car, you can begin the formal application process. When applying for term life insurance, the applicant is asked a number of detailed questions about the policy they wish to purchase.

Some insurance companies, after receiving an application for life insurance, will demand a medical exam. You may take these tests anywhere, including at home, at your place of employment, or at a designated testing center.

There is a wide range in application processing times depending on the insurer and the coverage requested.

  • Instantaneous acceptance is a perk of some insurers’ faster life insurance plans, which are aimed at healthy persons under the age of 60.
  • Some insurance providers offer “accelerated underwriting,” which allows applicants to forego a medical test and have their applications reviewed in as little as a day or a week.
  • And other insurance companies still utilize the old-fashioned method of conducting a medical exam and approving the policy, which can take upwards of a month.

How to Choose a Beneficiary

After your passing, the life insurance policy’s death benefit will go to the person(s) named as beneficiaries.

You have the option of naming numerous beneficiaries and specifying a percentage distribution among them. It’s also a good idea to name other beneficiaries who will get the payout if the primary ones are no longer alive.

It’s not common practice to designate a beneficiary. Trusts are a term used by some. You can control how your life insurance proceeds are dispersed by establishing a revocable living trust and designating it as the beneficiary. The trust funds could be used to pay for education or medical expenses for a child.

Consult an attorney about the appropriate trust structure before designating a trust as the policy beneficiary. Working with a financial consultant to include a trust into your overall financial strategy is also recommended.

Beneficiary designations must be reviewed and updated on a regular basis. Marriage and divorce are only two examples of the kinds of life changes that can influence your decision.

Contact your life insurance company and get a beneficiary change form to make any necessary changes. If you merely update your will, your life insurance policy won’t be affected.

How Does a Beneficiary Make a Claim?

In most cases, the insurer can process and pay a claim in as little as a week if it has all the necessary paperwork. Expecting a life insurance company to get in touch with you is unrealistic. They probably aren’t aware that your relative has passed away. Some insurance companies may proactively look for deceased policyholders, although even they may miss the initial signs of death.

  • If someone has passed away, the claim process cannot begin until a certified copy of the death certificate is submitted. The insurer is not required to return it. For this reason, if you require certified copies for a variety of reasons, you may want to obtain several of them.
  • Though you may be overwhelmed with grief and other responsibilities following a loved one’s passing, it is important to get in touch with the insurance company as soon as possible so that you can begin receiving benefits.
  • Make sure you’ve checked off every box for your claim: When filing a claim, be sure to include any and all paperwork that backs up your case. Such documentation may consist of a claim form and a copy of the individual’s death certificate.

In most cases, claims are settled within a month of the insurer receiving the required paperwork.

What Is Basic Life Insurance? - SmartAsset

A physical copy of the life insurance policy is not required at the time of filing a claim. In order to file a claim with an insurance company, all you need to do is find out the firm’s name.

That’s why it’s crucial to inform your beneficiaries about your insurance coverage and the company’s name. In addition, insurers have a legal responsibility to pay benefits exclusively to those named in the policy.


Finally, we’d want to remind you that we hope the information presented here has shown you the way to a million dollars in life insurance sales. It takes a lot of blood, sweat, and tears to realize your goals in life. Don’t give up on your goal; instead, work hard at it, and you’ll succeed. If you’re interested in learning more about life insurance, you should read up on how to dissolve an irrevocable life insurance trust. To paraphrase: I hope you enjoy the rest of your day.

Helen Skeates

Helen Skeates

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