How profitable is an insurance agent?
Asked by: Brenna Cummerata | Last update: June 25, 2025Score: 5/5 (56 votes)
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.
Do insurance agents make a lot of money?
As per ZipRecruiter, as of Oct 17, 2024, the average annual pay for a Licensed Insurance Agent in the United States is $71,292 a year. Generally, an insurance agent makes money via commissions. It's the most common form of compensation for insurance agents.
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).
Is it hard to run an insurance agency?
Just like other types of businesses, running your own insurance agency requires hard work, commitment, and dedication. It also helps if you have a certain level of industry experience as this puts you in a much better position to succeed.
What To Expect Your First 90 Days As An Insurance Agent!
Can a insurance agent be a millionaire?
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.
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.
What is the disadvantages of being an insurance agent?
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 failure rate for insurance agents?
A more accurate statement is that 93% of agents choose to leave within three years.
Which insurance license makes the most money?
- Insurance Agent.
- Insurance Underwriter.
- Actuary.
- Personal Finance Advisors.
- Claims Adjusters, Appraisers, Examiners, and Investigators.
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 is selling insurance so hard?
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.
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.
What is the hardest part of being an insurance agent?
Agents and brokers who listen carefully to what their clients and prospects say will be able to earn their trust, which is the hardest part of their job.
What is the most lucrative insurance to sell?
Life insurance is the most profitable—and the hardest—type of insurance to sell. With the highest premiums and the longest-running contract, it brings in cash over a long period of time. In the first year, agents make the largest annual sum on a policy, bringing in anywhere from 40–120% of the policy premium.
Are insurance agents in high demand?
Job Outlook
Employment of insurance sales agents is projected to grow 6 percent from 2023 to 2033, faster than the average for all occupations. About 47,100 openings for insurance sales agents are projected each year, on average, over the decade.
Do insurance agents get a base salary?
Insurance agents usually make money through commissions, with the commission amount often depending on the type and number of insurance policies they have sold and whether these policies are new or renewals.
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.
Can insurance agents make 100k?
An agent selling one or two policies per week at this commission level could make $50,000 to $100,000 in their first year as an agent.
Who is the richest insurance agents?
- Berkshire Hathaway's, Warren Buffet. ...
- Patrick Ryan of the Ryan Specialty Group. ...
- Erie Indemnity Chairman, Thomas Hagen. ...
- W.R. Berkley's William R. ...
- Mark and Robyn Jones of Goosehead Insurance. ...
- Brown & Brown's, J. ...
- Mercury General's, George Joseph. ...
- Henry Engelhardt of the Admiral Group.
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.
Can I be an insurance agent as a side hustle?
You may find that the insurance industry can be a very profitable way to work for yourself, have a flexible schedule, and help the people you work with! A part-time insurance business is a great way to dip your toes in the water and find out if it's right for you.
Who is the highest paid insurance agent?
Gideon du Plessis failed in the 10th standard and never went to college. He is today the highest earning insurance agent in the world, with annual commissions amounting to Rs 7 crore (Rs 70 million) plus.