Passive income can be associated with selling life insurance products, as life insurance brokers earn commissions on policies sold. These commissions are a percentage of the premium paid by the policyholder and can generate ongoing income for the broker as long as the policy remains active.

However, there are positives and negatives associated with this type of passive income model. On the positive side, life insurance brokerage can be a lucrative field with high commissions and ongoing income potential. Additionally, as policies often have long-term durations, brokers can enjoy consistent income streams over time.

On the negative side, the commission structure of life insurance policies can be subject to clawbacks if the policy lapses. This means that the broker may have to repay a portion of their commission if the policy is not kept in force for a certain period of time. This can reduce the passive income potential of life insurance brokerage and create uncertainty for brokers who rely on these commissions as a significant source of income.

Overall, while life insurance brokerage can provide passive income, brokers should be aware of the potential risks and uncertainties associated with this type of income model. It is important to carefully consider the commission structure and other factors before deciding to pursue this as a source of passive income.