How hard is selling life insurance?
Asked by: Prof. Crystel McKenzie DDS | Last update: April 8, 2025Score: 4.3/5 (46 votes)
Is selling life insurance a hard job?
The Bottom Line
That said, it'll be tough going, especially at first. Agents have to have thick skin and be able to handle rejection. After all, they're all selling the same products, for the most part. So if client service and building relationships aren't your thing, you might want to pass on this particular job.
How hard is it to start selling life insurance?
Selling insurance isn't easy. It takes 3 to 10 years to build this business, and that depends on the time you have and your network you're surrounded by that are good potential clients.
Is life insurance the hardest thing to sell?
Life insurance salesmen have a reputation for being high-pressure and pushy because life insurance is one of the VERY HARDEST THINGS TO SELL. So if you're the best salesmen you've ever met, by all means, give it a shot. The rewards can be incredible. But if you're NOT, then I'd steer clear.
How profitable is selling life insurance?
Whether you are selling them to employers or individuals, these policies tend to be large, with significant annual premiums. 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.
How Hard Is It In A Career Selling Life Insurance?
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.
Do life insurance agents get paid hourly?
Since the agent has no allegiance to the carrier(s) they represent, they are not paid an hourly wage to market and sell the insurance products they carry contracts for. However, when the agent does make a sale, the commissions can be much more lucrative than salary alone.
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.
What is the hardest type of insurance to sell?
Life insurance is the most profitable—and the hardest—type of insurance to sell.
How do life insurance agents get paid?
Typically, a life insurance agent receives anywhere from 30% to 90% of the amount paid for a policy (also known as the premium) by the client in the first year. In later years, the agent may receive anywhere from 3% to 10% of each year's premium, also known as "renewals" or "trailing commissions."
Can I become a millionaire selling life insurance?
Some agents, advisors, and multi-line agents made a million dollars in the first year they worked with us selling life insurance! While most of the others it took 2, 3, or more years to make a million dollars per year selling life insurance.
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.
Can you make money selling life insurance from 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.
Do you have to be good at math to sell life insurance?
Agents work with complicated policies, and they need to make sure that the policies are a good fit for their customers. This requires considering multiple factors. Additionally, insurance agents may perform math calculations and need to take detailed notes when meeting with clients.
What are the cons of being a life insurance agent?
Several factors cause so many life insurance agents to leave the business. The most common is they simply cannot make a living. The vast majority of life insurance sales jobs are straight commission. That means no base salary—not even minimum wage—and no benefits.
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.
Is selling life insurance worth it?
The life insurance industry is competitive but lucrative.
Becoming a life insurance agent provides an exciting opportunity for ambitious professionals. Not only is the industry competitive and lucrative, but it can also create a rewarding career trajectory.
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.
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.
How many life insurance agents quit?
You Quit. We often hear about the statistic that 93% of agents leave this business within the first three years, but one thing that struck me during the live session is that agents don't actually fail out of this business. When you join LIFE180 or any agency, you're not in danger of getting fired.
Which life insurance agents make the most money?
Top paying companies in Insurance for Life Insurance Agent are National Agents Alliance, New York Life, and National Income Life.
Is life insurance in high demand?
The study reveals that 42 percent of American adults either need to obtain life insurance or increase their existing coverage. This persistent need-gap includes about 102 million adults, blending those who are uninsured and those who are underinsured.
How many hours a day do life 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.
What is the commission for selling 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.
Can you make a living as an insurance agent?
According to the most recent data from the Bureau of Labor Statistics (BLS), the median income for insurance sales agents (all types) in the US is $49,840 per year, or $23.96 per hour. This is 37% more than the national median income ($31,133) for workers in all other industries.