Can you make a living as a life insurance agent?
Asked by: Rachael Murazik | Last update: February 16, 2025Score: 4.8/5 (3 votes)
Do life insurance agents really make a lot of money?
Life insurance agents are typically paid on commission. The more business they write, the more money they make. A life insurance agent who doesn't sell any policies is going to make zero. A successful life insurance agent can make $500000 or more per year. These commissions often pile up.
Can you make a good living selling life insurance?
Key Takeaways
Selling insurance isn't for the faint of heart, but you can make a good living doing it. The median income for an insurance salesperson in 2022 was $57,860. The insurance sales industry is growing, and it's easy to find a job. You can either be a captive or independent insurance agent.
Why do most life insurance agents quit?
Research shows (opens in a new window) that 80% of finance and insurance agents feel they aren't valued at work; they feel they are “only evaluated on what went wrong or could have been done better.” This is a major issue for finding and retaining top talent, which is more important than ever (opens in a new window).
Can you make a living being an insurance agent?
Successful life insurance agents can make very high incomes. It's not unusual for the successful ones to make $1000000 or more per year.
I Asked 166 Life Insurance Agent How Much Money They ACTUALLY Make Per Month
Can you become a millionaire being a life insurance agent?
If you have a great work ethic and are willing to place yourself out there to establish relationships with clients, you will get more opportunities to earn a higher income. Selling insurance may even make you a millionaire.
What kind of insurance agent gets paid the most?
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
Why is it hard to sell life insurance?
Why Is Life Insurance So Hard To Sell? It's hard to sell because it deals with the topic of death. That's something many people find difficult to consider or discuss. Furthermore, it's hard to keep trying to sell because agents find that they can't make enough money to support themselves.
What are the cons of being an insurance agent?
Cons of working in insurance sales
For some people, the thought of earning commissions is appealing. For others, it can cause stress and worry about their future financial situation. New insurance agents often work long hours to build and strengthen relationships and get their names out in the industry.
Why are insurance agents so rich?
One of the primary reasons insurance agents can accumulate wealth is their commission-based income structure. Unlike salaried employees, agents earn a percentage of the premiums they sell to clients. As they build a client base and generate more sales, their income potential increases.
Can selling life insurance be a side hustle?
Earn Supplemental Income
Looking to make some extra cash on the side? Now's the perfect time to start selling insurance! While we would never recommend going into any profession solely for the money, some people do enjoy earning something a little extra on top of their primary income.
How many policies does an insurance agent sell per month?
How many policies does an insurance agent sell? According to the financial reports, the Official Number is 2.5 policies per month. However, many people just do it part-time.
What is the most lucrative type of insurance to sell?
Life Insurance Policies
Financial Rewards: Selling life insurance can be highly lucrative, often offering substantial commissions.
How fast can you make money as a life insurance agent?
In the first year, a life insurance agent can earn anywhere from 30% to 90% of this premium, along with 5% to 10% of premiums paid in later years.
Is there a high demand for life insurance agents?
Job Outlook
Employment of insurance sales agents is projected to grow 6 percent from 2023 to 2033, faster than the average for all occupations.
Is it hard to be a life insurance agent?
“Being an insurance agent is not easy – at least if you want to be a good one,” he explains. “Most people become agents because they think it will be easy to make a ton of money and have a passive income stream. But that is incorrect. To be a successful agent, you must work harder than you ever expected.”
Why do most life insurance agents fail?
The most commonly cited reason insurance agents fail is that they fail to listen to their customers and take the time to find the best product to suit their needs. Agents who bring the right solutions to customers build trust, and that helps them build a book of loyal customers.
Do insurance agents get a base salary?
Many insurance agents also work full-time as salaried employees for insurance companies and agencies. Depending on their contract, they may earn a fixed wage or this plus commissions. Companies may also provide staff bonuses if they reach a certain profit target.
What is the hardest part of being an insurance agent?
What is the hardest part of being an insurance agent? The hardest part of being an insurance agent often revolves around the constant need for lead generation and sales. Many agents struggle with the cold calling aspect, where rejection is frequent, and maintaining a steady stream of new clients can be challenging.
What is the hardest part of selling life insurance?
Building trust with potential clients is perhaps the most demanding part of selling insurance. It requires more than just pitching policies and presenting numbers; it's about establishing a personal connection, actively listening to their concerns, and providing them with comprehensive solutions.
How much do life insurance agents make per policy?
Commission structures vary by policy and company. But typically, life insurance agents receive as commission 60% to 80% of the premiums you pay in the first year. They collect smaller commissions in subsequent years. Added up, 5% to 10% of all the premiums you pay over the life of the policy could go to commissions.
Can you sell life insurance at home?
Yes, you can sell life insurance from home. You'll need a state license to sell life insurance, and you may need a business license from your state or municipality as well. 51 A computer, high-speed internet connection, printer, and phone will allow you to work productively and meet virtually with clients.
Which state pays insurance agents the most?
Best-Paying States for Insurance Sales Agents
The states and districts that pay Insurance Sales Agents the highest mean salary are New York ($108,960), New Jersey ($106,910), Illinois ($105,150), Minnesota ($100,750), and Massachusetts ($100,590).
Which insurance field makes the most money?
Roles such as Life Insurance Actuary, Underwriting Manager, and Consulting Actuary often command the highest salaries in the life insurance sector. The best paying jobs in life insurance in terms of salary also include positions like Claims Director or Chief Compliance Officer.
What is the commission of a life insurance agent?
The most common way life insurance agents make money is through commissions. Generally, agents receive front-loaded commissions of 40% to up to 115% of the policy's first-year premiums, although the figure for renewals falls steeply to about 1% or 2%.