Is selling insurance a good career path?
Asked by: Dr. Nellie Ankunding Sr. | Last update: May 15, 2025Score: 4.8/5 (7 votes)
Does selling insurance pay well?
How much does a Selling Insurance make? As of Jan 17, 2025, the average annual pay for a Selling Insurance in the United States is $78,517 a year. Just in case you need a simple salary calculator, that works out to be approximately $37.75 an hour. This is the equivalent of $1,509/week or $6,543/month.
How hard is it to become an insurance salesman?
To be an insurance agent, you'll need a minimum of a high school diploma or GED as well as an insurance license from your state. Licensing requirements vary from state to stay but you are generally required to take a course and pass your state's licensing exam.
How stressful are insurance sales?
High-stress levels
The insurance industry can be a demanding and highly competitive field. Insurance agents often face pressure to achieve their goals while simultaneously providing exceptional customer service, meeting sales quotas, and staying abreast of industry regulations.
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).
If I Wanted to Become a Millionaire In 2025, I'd Do This
What are the cons of being an insurance agent?
- 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.
Why is it so hard to sell insurance?
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 people who sell insurance make so much money?
In essence, insurance brokers provide invaluable expertise to clients, ensuring they have the coverage they need. Their compensation, through commissions and fees, reflects the vital services they offer within the industry.
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.
Is the insurance industry a stable career?
Insurance is widely considered an “evergreen career,” one which typically offers excellent job security. Bureau of Labor Statistics research predicts that positions for insurance professionals will likely grow by 6% from 2021 to 2031, with approximately 32,900 new jobs per year.
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.
What is the average age of insurance salesman?
Insurance agents make on average $51,936 per year. The average age of an Employed insurance agent is 45.9 years old.
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.
Is selling insurance a side hustle?
Selling insurance as a side hustle offers a flexible and potentially lucrative opportunity to earn extra income. Whether you're a stay-at-home parent, a college student, or a full-time employee looking to boost your earnings, becoming an insurance agent can provide a rewarding way to achieve your financial goals.
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.
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 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.
Is insurance agent a stressful job?
Being an insurance agent can be a rewarding career, but that doesn't mean it doesn't have its share of frustrations. Like any job, selling insurance comes with pressure to perform and job related stress.
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.
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.
How much commission do insurance agents make per month?
For auto and home policies, captive insurance agents earn about 5% to 10% of the entire premiums paid for the first year, while independent agents receive about 15%. Commission rates for renewals range between 2% and 15%, averaging around 2% to 5%, regardless of the type of agent.
What percentage of insurance agents quit?
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 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.
How fast can I make money selling insurance?
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.