Life Insurance Agent… What are the advantages and disadvantages?

Currently, almost every life insurance (both locally and internationally), selling its products through agency distribution channels. With this distribution lines, insurance companies come up with a very attractive remunerations for agent so that  the  marketing officer will earn commissions, bonuses and lots of prizes on the sale of the policy. The famous remunerations come from unit-linked products that can provide extraordinary commission.

Why do insurance companies give such a large package of remuneration? And where the remuneration came from? 

Remuneration package is provided in a way, because the insurance policy is a program that is very hard to sell but the benefits of the product itself is very good for the customers. By providing high remuneration packages, the marketing will be motivated to sell so that all efforts including socialization finally will run. Remuneration package is certainly taken from customer funds are deposited (included in the premium).

We know the agent as the seller of life insurance or by profession; they are the life insurance marketers. With a pattern of agency employed by an insurance company, then in fact there are advantages and disadvantages are obtained by an insurance agent.

The advantages of the particular agency insurance system are:

1. Potential gain remuneration package of up to more than 90%
2. They can manage their own financial benefits without depending on others.

But there are also short comings of this system. Not many agents who know about it.  The drawback is:

1. The insurance company will ask each agency to remain responsible for errors arising on any sale of the policy even though the agent has already quit.
2. Agent is not acting on behalf of the company, but only as a corporate partner but given workload to serve customers forever because of the remuneration has been accepted as if the agent is an employee of the company.
3. Agents will be obliged to sell in accordance with predetermined targets or will be terminated where the company this principle against the principle of agency agreements in which the recipient as a partner, why should there be a target and set a career?
4. Agents are forced to perform risk management and customers grouping in the early stages where until recently most of the agents only obtain knowledge about the risks and types of funds are arguably almost never taught how to classify the risk of human needs on the type of work or something.
5. Agents who are not productive, although once successful, will still be  terminated by the company.

Is there a better system for an insurance agent in Indonesia? Once again the description above is only my opinion only. In Indonesia, I think there is no perfect system, but can be tricked by combining multiple system into one such system with Direct Sales agency also services the Branch System.

Dare to argue on this review? There is always a fun way to learn finance and if we know the tips and Tricks ... It's a Fun-nancial Tips and Trick. Have  A  Good  Day.