Definition - What does Commission mean?
In terms of insurance, a commission is a fee in a percentage of the premium that an insurance company pays an insurance agent in exchange for soliciting applications for insurance for the company.
Insuranceopedia explains Commission
The commission depends on the kind of plan purchased, the premium, the insurance company, and the marketing methods. Generally, for life insurance, it can range from 10 to 25% and 25 to 55% for term and permanent policies, respectively. With non-life insurance policies, such as auto insurance, the commission is generally 8 to 16% of the premium that the client pays.
How Well Do You Know Your Life Insurance?
The more you know about life insurance, the better prepared you are to find the best coverage for you.
Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.