Do insurance agents make a base salary?

Asked by: Rex Mueller  |  Last update: October 1, 2025
Score: 4.8/5 (36 votes)

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.

Do insurance agents get base salary?

Insurance agents don't actually earn salaries, because they're independent business owners in charge of their own income. But the longer you're an agent, the greater your income potential, generally speaking – you'll get better at your work, you'll start getting referrals and your existing clients may grow.

Is it hard to make money as an insurance agent?

While it is possible to earn a significant income by selling insurance, becoming ``rich'' solely from insurance sales is not guaranteed. Insurance agents earn commissions on policies they sell, and building a strong client base and specialization can contribute to higher income potential.

How does getting paid as an insurance agent work?

Agents typically get paid through commissions, which are a percentage of the insurance premium or on a federally regulated standard. This doesn't mean you should always try and sell the most expensive policy. When agents sell a new policy, they earn a higher commission rate compared to when that policy is renewed.

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.

Do insurance agents make a base salary?

19 related questions found

Do insurance agents get paid good?

As of early 2023, the average annual pay for a Life insurance agent in the United States was $83,442 a year. The top four paying states for Life insurance agents are New York, New Hampshire, Vermont, and Maine. Life agents in these states earn higher salaries than the national average.

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.

Why do insurance agents earn so much?

Most professionals who sell insurance are paid largely on a commission basis. In fact, most agents aren't even employees of the carrier. More often than not, they're independent contractors who are compensated based on how much they sell, with higher commissions for certain types of products.

Why did I quit being an insurance agent?

There's two big reasons why insurance agents quit: they don't feel valued, and they aren't given the technology they need to do their jobs well. In addition, managing commissions while hitting performance goals is a stressful part of the job for many insurance agents.

Do insurance agents work full time?

How many hours per week does an insurance agent work? Most agents work full time and some work over 40 hours per week. Many spend normal business hours with clients and then, in the evenings, complete paperwork and prepare presentations for prospective clients.

What are the cons of being an insurance agent?

Cons of a career selling insurance
  • Unpredictable income. Working in a commission-based role has its drawbacks. ...
  • High-pressure work environment. Selling insurance can be stressful. ...
  • Finding new leads can be challenging. ...
  • Limited paid time off. ...
  • Experiencing a lot of rejection.

How do state farm agents get paid?

With multiple income streams, State Farm gives each agent the flexibility to determine their own income goals. Our independently contracted agents don't receive base compensation* but can earn commission, potential travel and other compensation by helping customers.

Do insurance agents make 6 figures?

A life insurance agent's income potential is uncapped. Some of the highest earners make well over six figures each year, while others choose to work as part-time insurance agents to earn some extra cash.

Can you make a living as an insurance agent?

The latest data from the Bureau of Labor Statistics (BLS) shows that insurance agents earn a mean annual salary of $79,650 or an hourly rate of $37. While wages for entry-level professionals can be significantly lower, industry veterans with an established customer network can earn salaries that can reach six-figures.

What is an entry-level insurance agent?

An entry-level Insurance agent works with individual customers to evaluate their circumstances and financial resources and presents various insurance plans that can meet their needs. They are responsible for growing our customer base and driving insurance sales through networking, referrals, and marketing strategies.

Is insurance agent a stressful job?

Insurance agents often face pressure to achieve their goals while simultaneously providing exceptional customer service, meeting sales quotas, and staying abreast of industry regulations. This, combined with the responsibility of safeguarding clients' financial well-being, can make for a stressful work environment.

What is the turnover rate for insurance agents?

Nearly 90% of agents across various lines of insurance, including life, quit within three years, according to life insurance agency management system provider AgencyBloc.

How long do most insurance agents last?

The burnout rate for life insurance sales agents is high. More than 90% of new agents quit the business within the first year. The rate increases to greater than 95% when extended to five years.

What not to do as an insurance agent?

Don't: Sell on Social Media. Insurance and financial services agents are limited to what and how they can advertise their products and services. For example, cold calling and going door-to-door are no-nos, as are soliciting at colleges, clinics, and certain places.

Which insurance company pays agents the most?

Popular companies for an Insurance Agent
  • Allstate. 3.5. $42K - $67K. ...
  • Platinum Supplemental Insurance. 3.2. $55K - $99K. ...
  • Farmers Insurance Group. 3.2. $67K - $114K. ...
  • New York Life. $97K - $176K. /yr. ...
  • SelectQuote. 3.1. $55K - $93K. /yr. ...
  • Bankers Life. $63K - $113K. /yr. $84K. ...
  • USAA. $51K - $78K. /yr. $63K. ...
  • American Income Life. 3.1. $68K - $122K. /yr.

What percentage of insurance agents succeed?

Dear Friends, Around 80% of new insurance agents hired by independent marketing organizations fail and quit within their first 12 months of getting their license. And then within 5 years, 80% of the remaining new insurance agents will struggle and quit! That is a 90% failure rate for new insurance agents.

Which insurance license is hardest to get?

Each insurance licensing exam presents its own challenge. Between Life and Health, students say that the Health insurance exam is the more difficult. Health insurance policies are simply more complicated than life insurance policies. The Property insurance exam is easier than the Casualty insurance exam.

What is the best insurance company to work for as an agent?

Farmers Insurance

Farmers Insurance Group is another American insurance company that sales agents and employees find best to work for. It offers a comprehensive range of insurance products and financial services, including auto, home, renters, life, and business insurance among others.

What degree do most insurance agents have?

Although college training is not a prerequisite for insurance work, those who have a college degree in economics, finance, or business will probably have an advantage starting out in this field. Many colleges and universities offer courses in insurance, and a number of schools offer a bachelors degree in insurance.