Is being a life insurance agent worth it?
Asked by: Marlon Thiel | Last update: January 28, 2026Score: 4.6/5 (54 votes)
Is it hard to make money as a life insurance agent?
Comments Section It can be a good gig. But in this day and age, it's a highly competitive field. Traditionall, to make good money, you would have to sell expensive whole life policies, which are very hard to sell without a natural network especially as a young person.
Is it a good idea to be a life insurance agent?
Becoming a life insurance agent can be a promising career for some people, as it can provide a steady income and the opportunity to help others. However, it may not be a good fit for everyone, as it requires strong sales and communication skills, as well as the ability to build and maintain relationships with clients.
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).
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.
How I Made $176,887 in My First 12 Months as an Insurance Agent (MY STORY)
Is selling life insurance a good job for beginners?
Key Takeaways
Insurance sales typically don't pay very well at first, but, unlike with other occupations, the longer you stick around in insurance, the more income you can make. The best agents are the ones with respected industry designations, such as chartered life underwriter.
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 is life insurance so hard to sell?
However, even when you locate a good prospect, the product itself is hard to sell. People are loathe to discuss or even acknowledge their own mortality. Moreover, unlike a new car or cellphone, life insurance provides none of the instant gratifications that lead people to make impulse purchases.
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.
How many people fail at selling life insurance?
A more accurate statement is that 93% of agents choose to leave within three years.
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 is the failure rate for life insurance agents?
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.
How much do life insurance agents make per policy?
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."
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.
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.
What is the best 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.
How many hours do life insurance agents work?
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.
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.
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.
Is selling life insurance a good hustle?
In our opinion, it doesn't hurt that insurance is a lucrative business. You can gain commissions on the plans that you sell, so it's entirely up to you how much you want to hustle. You can also make more money with consistent renewals, so it pays in the long run to have loyal clients.
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.
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.
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.
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 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.