Do insurance salesmen make commission?

Asked by: Faustino Thiel MD  |  Last update: March 12, 2025
Score: 4.4/5 (2 votes)

Insurance agents are usually paid a commission on these insurance policy premiums, which means that the more policies they sell, the more money they can make.

How do insurance salesmen get paid?

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.

How much do insurance agents make on commission?

The average commission rate for insurance agents ranges from 10% to 20%, with some agents earn as much as 30% or more. For example, if an agent sells a policy with a $1,200 annual premium, and the commission rate is 15%, the agent would earn $180 per policy.

Is insurance sales 100% commission?

For every policy sold, the insurance agent earns a large upfront commission. This rate can range from 40% to 100% of the first-year premium, the amount the policyholder pays for the policy. The rate is set by the insurance company, and each state has its own commission limits.

Do insurance sales reps make good money?

Insurance Sales Agents made a median salary of $59,080 in 2023. The best-paid 25% made $83,420 that year, while the lowest-paid 25% made $43,440.

For New Insurance Agents - How Commissions Work!

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Why is selling insurance so hard?

Selling insurance can be stressful. It requires long work hours. You can also experience constant pressure to meet different quotas and targets. The highly competitive nature of the profession can create a work environment that often leads to stress and burnout.

Does AFLAC pay hourly or commission?

Aflac also offers a distinct advantage in that, unlike many other commission structures, agents are paid part of their commission as soon as coverage is issued. That means you don't have to wait until a policyholder actually starts paying for coverage before you see money in your account.

Which insurance company pays the highest commissions?

Some of the companies that offer high commission rates to their agents are HDFC Life, Max Life, ICICI Prudential, and Kotak Mahindra. These companies also have attractive incentive schemes and bonus programs for their top-performing agents.

How many hours do insurance agents work?

Insurance Agents generally work between 40 to 50 hours per week, but this can fluctuate depending on client needs, policy renewals, and sales goals. Many agents have the flexibility to set their own schedules, which can lead to working evenings or weekends to accommodate clients.

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.

What type of insurance sales makes the most money?

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 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.

How many policies does an insurance agent sell per month?

About on average 25 to 40 per month. 2.5 policies per month is the Official Number from the financial reports. But many people do it part time. 10 on average.

Do you actually make money selling insurance?

Selling life insurance is part of the financial services industry, which has a track record of generating more millionaires than any other industry. One of the reasons that selling life insurance is so lucrative is your ability to make ongoing, residual income.

What is the highest salary for insurance sales agents?

Highest paying cities near India for Insurance Agents
  • Bengaluru, Karnataka. ₹4,32,520 per year. 2 salaries reported.
  • Pune, Maharashtra. ₹3,78,830 per year. 14 salaries reported.
  • Gurgaon, Haryana. ₹3,68,520 per year. ...
  • Mumbai, Maharashtra. ₹3,42,557 per year. ...
  • Hyderabad, Telangana. ₹3,19,764 per year. ...
  • Show more nearby cities.

What percentage of insurance premiums go to the agent?

The common range is between 5% and 10% of a policy's total premiums for the first year, with the percentage going down after a plan is renewed.

Are insurance agents paid well?

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.

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.

Why are insurance commissions so high?

Insurance Company, Policy Type, and Coverage Level

For example, a life insurance agent might earn higher commissions on whole-life policies compared to term-life policies. Similarly, policies with higher coverage often yield higher commissions, as they typically have higher insurance premiums.

Do all insurance agents make commission?

Do Insurance Agents Get Commission? As an insurance agent, you'll earn commissions on the policies and products you sell, including property-casualty, life insurance and financial services. Commissions are usually a percentage of the premium that a client/member pays.

What insurance company pays their 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 is the average commission for life insurance?

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.

What does Aflac pay per day?

ACCIDENT HOSPITAL CONFINEMENT BENEFIT: Aflac will pay $200 per day when a Covered Person is admitted for a Hospital Confinement of at least 18 hours for treatment of Accidental Injuries sustained in a covered accident. Aflac will pay this benefit up to 365 days per covered accident, per Covered Person.