Life Insurance Agents and Brokers

In May 2023 the median yearly income of insurance agents was $59,080, according to the U.S. Department of Labor. The department also reported that the lowest paid 10 percent of these workers, which typically includes those just beginning in the field, made less than $34,940. The highest paid 10 percent earned $134,420 or more. Fifty percent of insurance agents earned between $43,440 and $83,420.

Many offices also pay bonuses to agents who sell a predetermined amount of coverage. Beginning agents usually receive some form of financial assistance from the company. They may be placed on a moderate salary for a year or two; often the amount of salary declines each month on the assumption that commission income on sales will increase. Eventually, the straight salary is replaced by a drawing account—a fixed dollar amount that is advanced each month against anticipated commissions. This account helps agents balance out high- and low-earning periods.

Agents receive commissions on two basis: a first-year commission for making the sale (usually 60 to 80 percent of the total first-year premium, according to NerdWallet.com) and a series of smaller commissions paid when the insured pays the annual premium (usually 5 to 10 percent of the yearly payments of the life of the policy). Most companies will not pay renewal commissions to agents who resign.