Is there a shortage of life insurance agents?
Asked by: Earl Parisian | Last update: June 2, 2025Score: 5/5 (39 votes)
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.
Is there a shortage of insurance agents?
The shortage of experienced insurance professionals creates operational gaps that inhibit growth and increase policyholder risk. And while technology and automation can mitigate capacity constraints, true competitive advantage comes from deep insurance knowledge.
Why is life insurance so hard to sell?
Selling insurance is difficult for a number of reasons. Most of the time when people buy something it is tangible and they can see it in front of them where with insurance it is not. The buyer is purchasing something that covers risk which many do not believe they need to pay for until something goes wrong.
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).
Why Do So Many Insurance Agents Quit?
How many people fail at selling life insurance?
A more accurate statement is that 93% of agents choose to leave within three years.
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 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.
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."
What is the hardest type of insurance to sell?
Life insurance is the most profitable—and the hardest—type of insurance to sell.
What is the future outlook for insurance agents?
The Bureau of Labor Statistics projects 6.1% employment growth for insurance sales agents between 2023 and 2033. In that period, an estimated 33,400 jobs should open up. Insurance sales agents solicit, sell and negotiate insurance policies.
What is the average age of a life insurance agent?
Insurance agents make on average $51,936 per year. The average age of an Employed insurance agent is 45.9 years old.
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.
Is it worth it to be a life insurance agent?
The Bottom Line. Those who have a knack for selling life insurance, and the perseverance to grind through the tough early years, can make a lot of money and retire with a high degree of financial worth. However, life insurance agents, to be successful, must accept short-term pain in exchange for long-term gain.
What is the failure rate for life insurance agents?
In fact, many agents new to insurance are fearful, knowing they face a high risk of failure. How many agents quit selling insurance? There isn't an exact number. But we figure somewhere between 90% and 95% of agents quit in their first 12 months of receiving their license.
How many hours a week do 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.
Can you make a living as a life insurance agent?
You can make a good living selling life insurance, especially if you continue to earn commissions on policies you have already sold. However, it is not an easy career, as it requires constantly working to find leads, build relationships, and make sales.
What is the commission for a life insurance agent?
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.
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.
Is being a part-time insurance agent worth it?
One of the key advantages of working part-time as an insurance agent is that it enables you to maintain your main job. If you have bills to pay and responsibilities to meet, this can be hugely beneficial. You can gradually transition into the insurance field while ensuring a steady paycheck from your existing job.
Can you become a millionaire being a life insurance agent?
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.
Can I sell insurance at night?
You can sell final expense, mortgage protection, even health insurance products like Medicare Advantage, even on nights and weekends. These are all VERY workable sales systems as a part time insurance agent.
What is the most lucrative type of insurance to sell?
Life Insurance Policies
Financial Rewards: Selling life insurance can be highly lucrative, often offering substantial commissions.
Which state pays insurance agents the most?
Best-Paying States for Insurance Sales Agents
The states and districts that pay Insurance Sales Agents the highest mean salary are New York ($108,960), New Jersey ($106,910), Illinois ($105,150), Minnesota ($100,750), and Massachusetts ($100,590).
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.