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Is it worth it to become an insurance agent?

I'm studying to become an insurance agent. My study book says the following: ....?

  • My study book says the following: "It's important to remember that insurance is a BUSINESS. Some people think of insurance as a service that helps people in times of need. Insurance companies operate to produce a PROFIT. Therefore, they want to collect more in premiums than they pay out in claims." Seriously - this is what it says. Who do you think the insurance companies in the USA are going to care for: the insured or the insurance company?

  • Answer:

    Both. If they don't care for their bottom line this year, they won't be around to care for the insured next year. You can't seperate the two. Companies that don't worry about their bottom line (all companies, not just insurance companies) are called, "Out Of Business". FWIW, keep in mind that insurance companies pay out in claims, for each dollar taken in: health - $.99 Homeowners - $.80 auto - $1.15 workers comp - $1.25 So you're NOT looking at huge profits here. Oh, and to compare, government health care - medicaid - pays out about $6 for every $1 taken in, in premiums (the taxpayers subsidize it), but about 80% of it is administrative costs. Private insurers pay closer to 27% in administrative costs.

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This is an easy one lol. Any business stays in business by making a profit. They have to pay their employees, their lawyers, and their creditors. An insurance company spends billions of dollars per year in claims, a lot of them bogus, and they could not do this just by caring about individuals. After all why would you be charged premiums if they were just going to give the money away. Oh but wait where would they get the money to give away?

Thomas B

Insurance company obviously. This is why I've been advocating national plans for things like the health of our citizens. I understand insurance for nice tangible items like valuables and such. But unfortunately democracy (U.S.) promises the right to vote but gives no rights on health. People should not have to worry about basic health expenses. thank you for your posting.

jmaat1

Let's say that it was a service to help people.... It wouldn't be around very long to help folks if it didn't operate at a profit. You can make a profit and still have a social conscience. That sounds like what you want to do.

aaron p

seriously, are you in disbelief about that? did you think insurance companies were NOT profit? that they just handed out money for no reason? of course they are a business, and like any other business, they WANT to make money and KEEP it. Maybe you should research the job your trying to get into BEFORE you get into it.

Queen B

The insurance company is number one! And your job as a producer is to represent the company, NOT the 'insured'.

Joshua

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