Medigap insurance specialists assist the elderly with Medicare deductibles.
Insurance agents often diversify their business by offering multiple insurance lines, or they may specialize in one area of insurance. Medigap insurance specialists sell plans that help pay the deductible on Medicare plans for those who can't afford to pay the deductible all at once on their own. The average salary for those specializing in this area of insurance is typically lower than the average national salary for all insurance agents.
Average Salary
The average salary of an insurance agent specializing in the sale of Medigap insurance plans was $44,000 per year, as of July 2011, according to Indeed.com. This salary is significantly lower than the average salary earned by insurance agents nationwide in 2010. According to the Bureau of Labor Statistics, the average salary for these agents was $62,520 per year. One possible reason for the difference is that agents who specialize in one area may sometimes have a limited market to which they can advertise and sell, whereas more general agents have multiple products to offer to a more diverse market.
Pay Scale
Placing the salary of a Medigap insurance agent within the broader pay scale of insurance agents nationwide can provide additional context and insight. According to the bureau, the median salary for those working in this field was $46,770 per year in 2010. This places Medigap agents in the lower 50 percent of the pay scale in terms of average salary earned. The middle 50 percent of those in this field, however, earned between $33,330 and $71,620 per year, indicating that Medigap agents make what many other insurance agents make as well.
Location
According to the Bureau of Labor Statistics, the top-paying states in which to work as an insurance sales agent include Rhode Island, Massachusetts, California, New York and North Dakota. Those in Rhode Island made an average salary of $81,650 in 2010, while those in Massachusetts made $78,090. California sales agents made $77,920, while those in New York and North Dakota made $76,880 and $76,130, respectively. California was also one of the states with the largest number of employed insurance agents. Florida and Texas were the states with the two highest employment levels. Salaries in these states, however, were significantly less than in California and the other top-paying states. Florida insurance representatives made an average of $61,330 per year, while those in Texas made $57,240 in 2010.
Job Outlook
According to the Bureau of Labor Statistics, the number of jobs in the insurance sales industry should grow by about 12 percent during the decade from 2008 to 2018. One of the major demographic trends that will affect job growth for Medigap insurance sales is the increased number of people in the elderly population. As the cost of living and other expenses make paying deductibles more of a hindrance, Medigap agents may be able to provide needed financial assurance for clients.
Tags: average salary, Medigap insurance, insurance agents, According Bureau, According Bureau Labor, Bureau Labor
