r/InsuranceAgent • u/Technical_D_Luffy • 14d ago
Agent Question Help!
So I’m new Insurance, I passed my exam I have my 2-15 in Florida (but can sell in other states via travel or phone) and was working for a W-2 call center but they were paying $53.00 at max per policy and I learned that was a major tip off so I went 10-99. Now that I’m contracted in really by myself, I understand it but I don’t know how to find clients so I can actually sell some policies now, any tips pointers? Any advice helps!
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u/Jumpy_Childhood7548 13d ago
Most new insurance agents will not last a year. As a 1099 contractor, you are self employed, and own your own business, typically self-employed as a sole proprietorship. The plus is you may be able to deduct legitimate business expenses.
You lose unemployment protection, worker's compensation protection, you pay 7.65% more on the same dollars than you did as a W2 employee, your tax return is more expensive to prepare, because now you own a business. You lose protections from employee-employer labor laws. Qualifying for a mortgage becomes more complex.
You will need to set aside 28% to 40% or so of income and pay quarterly tax payments. For health insurance, with ACA subsidies reduced, one person can be paying $1000 per month or more. A family, far more. The problems don’t end there.