Can a agent buy life insurance for his own and get percentage of commission from insurance company?
UPDATED: Oct 12, 2016
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Asked October 12, 2016
Insurance agents are legally permitted to sell themselves life insurance policies and receive the usual commission. Now on the surface, some may believe that this can represent a conflict of interest. It really depends on how you decide to look at the situation. For instance yes they make a commission, however, they are still responsible for the payments of the premiums just like every else.
This situation is not any different than a person who owns a painting company painting their own home. They are experts, who know how to supply a specialized service. Providing yourself with that service and benefitting from it in a legal way is that natural course of things. Is the painter expected to hire an outside service and spend additional money? No, why should he or she spend additional money on something they know how to do? Now pose the same question to yourself about the insurance agent. The agent already knows how to write the policy, and can benefit from their area of expertise. Quite honestly, who would not utilize this completely legal perk of the job? Job perks are something everyone enjoys they just depend on the industry you specialize in. Insurance agents happen to be able to get paid for theirs.
Answered October 14, 2016 by bystander318