Alexandoy
VIP Contributor
In our ancestral home there was a neighbor who was an insurance agent. He is actually the father of my childhood friends. When I started working I have noticed that the agent was always home and drinking brandy. There was a time that I consulted him about insurance and that’s when I got to know of his income.
When you sell an insurance with a policy that is for 20 years of build up that means the insured person has to pay the monthly premium for 20 years. Although they can pay for 10 years but many preferred to have the 20-year package. The agent earns a commission on the premium. That is the secret, our neighbor said, that even after 15 years he is still earning from the premium. That is clearly a passive income that served as his livelihood.
When you sell an insurance with a policy that is for 20 years of build up that means the insured person has to pay the monthly premium for 20 years. Although they can pay for 10 years but many preferred to have the 20-year package. The agent earns a commission on the premium. That is the secret, our neighbor said, that even after 15 years he is still earning from the premium. That is clearly a passive income that served as his livelihood.