Can An Insurance Agent Sell Themselves A Policy?

Insurance agents are allowed to sell themselves life insurance policies and earn a commission for doing so. Some people might think this is a problem because it could be a conflict of interest. But, the truth is that it’s not necessarily a conflict of interest because the agents still have to pay their own premiums just like anyone else.

Can An Insurance Agent Sell Themselves A Policy

As an insurance agent, I am frequently asked if it is possible to sell an insurance policy to myself. This is a very valid question that deserves a thoughtful answer. Ultimately, the answer is yes!

Overall, this is just a normal job perk that insurance agents get to enjoy. Every industry has its own perks and benefits, and this is just one of them for insurance agents. So, it’s totally legal and makes sense for them to take advantage of it!

In this article, we will explore the legal and ethical considerations, the pros and cons of selling yourself insurance, the standards and regulations of doing so, and look at some real-world examples. Let’s get started! 

Insurance Agents Selling Themselves A Policy

Because of how insurance agents get paid and the type of work they do, they can actually write their own insurance policies, which can be pretty beneficial. However, it’s important to note that there are some challenges that come with this situation.

One of the advantages of an agent writing their own policy is that they can earn a big commission on the sale – sometimes up to 45 or 50 percent of the yearly premium for the policy. This commission goes straight to the agent, so when they write a policy for themselves, it’s like they’re getting a discount on their insurance equal to their commission. Plus, because the agent gets a commission on each yearly premium, they have complete control over how long they receive renewal income on this particular policy.

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I’ve done it myself. I’ve written my own home insurance, car insurance, and life insurance. It is legal to do so and I collect the commissions, so why not?

When it comes to buying life insurance, one of the toughest things to figure out is how much coverage you actually need. Some insurance agents might suggest buying more insurance than you really need, just so they can earn a bigger commission.

Even agents who are honest and want to do right by you may not know all the details about your life and situation as well as you do.

However, if you write your own insurance policy, you’re getting coverage from someone who knows your situation better than anyone else – you!

This means you can ensure that the policy you buy is tailored to your specific needs and interests. You can set the coverage amount and terms based on your lifestyle and realities, and be confident that you’re making the best decision for yourself.

Ultimately, writing your own policy can be a great way to put your own interests first and get the coverage you need, without worrying about any hidden agendas.

As an insurance agent, I can tell you that there are a lot of legal and ethical considerations that arise from simply selling insurance. But selling an insurance policy to yourself it pretty straightforward.

The insurance agent is the insured, therefore all of the responsibility falls upon one party which cannot contradict itself.

Its important to remember that there may be state-specific laws and regulations that must be followed when selling insurance. As an insurance agent, our primary responsibility is to act in the best interests of our clients, and if we sell a policy to ourselves – then great! There’s no conflict of interest because the interest is unified with one party.

Real-World Examples

As an insurance professional, I know that it is important to see examples of success and even failure in the insurance industry, and this is true of agents who have sold themselves a policy. Real-world examples of insurance agents selling themselves policies can vary greatly. In most instances, an agent may have successfully sold themselves a policy without any issues or complications. 

However, in other cases, the agent may have faced legal or ethical repercussions.

One example of an insurance agent successfully selling themselves a policy is a small business owner who purchases a business liability policy to protect their company. In this scenario, the agent has a clear understanding of the coverage they need and is able to make an informed decision when purchasing a policy.

On the other hand, an example of an insurance agent facing legal or ethical repercussions for selling themselves a policy is an agent who sells themselves a policy without disclosing their profession to the insurance company. But this is unlikely as the insurance company whom the agent represents would be on the application, therefore acknowledged and known by the carrier.

Another example is an agent who sells themselves an insurance policy and then proceeds to file a claim, this is seen as a conflict of interest and is not allowed. It can lead to the policy being denied and the agent being held liable for any damages.

Regardless, it is crucial for insurance agents to understand the potential consequences of selling themselves a policy and to always act in accordance with industry standards and regulations.

Frequently Asked Questions

How much money can someone earn by selling an insurance policy?

The amount of money someone can earn by selling an insurance policy depends on the policy and its terms. The higher the premium, the higher the commission. For instance, a term life insurance policy that costs $1,000 per year will yield a one-time commission of $800-$1,200 for the insurance agent.

Is it possible to sell life insurance to a family member, like my mom?

It’s possible to sell life insurance to a family member without any issues so long as standard ethical, compliance, and general underwriting guidelines are followed.

Can an insurance agent write a policy for themselves?

An insurance agent can write a policy for themselves without concern so long as the policy is underwritten correctly.

Can someone who’s 70 years old get life insurance?

Someone who’s 70 years old can still get life insurance, but it might be more expensive than for someone who’s younger. If there are any health concerns (pre-existing conditions) then the person may not be eligible.

When is a good time to cancel life insurance?

It’s a good time to cancel life insurance when you no longer need the coverage, like if your kids are grown up and financially independent or if you have no outstanding debts such as a mortgage, credit cards, or otherwise. But still, life insurance is a good hedge to protect against unforeseen death.

Is it possible to have two life insurance policies at the same time?

It’s possible to have two life insurance policies at the same time. Many people often have a term life insurance policy as well as a permanent life insurance policy such as whole life and universal life. This is due to their different use cases and affordability.

How much would a million-dollar life insurance policy cost for someone who’s 60 years old?

The cost of a million-dollar life insurance policy for someone who’s 60 years old depends on a few factors, like their health, lifestyle, and the type of policy they choose.


As an insurance agent, I can tell you that selling yourself an insurance policy is technically possible, but you need to consider legal, ethical, and industry standards, as well as the benefits and drawbacks. Agents should weigh pros and cons and follow regulations, prioritize client interests and be transparent with clients. It is important to carefully consider all factors and prioritize clients’ needs to ensure you are as ethical as possible and following legal and employer requirements.

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