How much can you prosper as an insurance agent?

Submitted by Anonymous (not verified) on Sat, 03/08/2008 - 19:41
Insurance agents can have quite a rewarding career. The commission that they earn from each policy they sell can be handsome, depending on the policy as well as the company they belong to. It is a job that requires a lot of hard work and success does not come easy. However, once you learn the ropes of the trade, there may be no limit to how much you can earn.

How much do life and health insurance agents earn?

  • Life Insurance Agents: Commissions earned by agents selling life insurance can vary depending on the kind of policy sold. It may also vary from one insurer to another but in general, the insurance agent typical commissions would be around 30% - 50% in case of a term policy and 90% - 95% in whole life policy. This would be the earning in the first year. However, the earnings from premiums in the subsequent years would be much lower. The average earning then would be around 6% from whole life policies and 4% per year from term policies for as long as they last.

    Some companies do not offer any fees. The only money their agent earns is from the commission he/she gets by selling a policy. Such agent may have a tendency to push a policy to the customers in order to earn more from the commissions.

  • Health Insurance Agents: Commissions paid on health insurance is almost 20% of the premiums for the first year and 5% for the subsequent years till the duration of the policy.
Some insurance companies may have flexible work policies while some may have very rigid ones. Not all insurance companies are like that, and if you are an independent agent, you need not be under the control of any company. However, independent insurance agent commission also centers on the number of products he/she can sell. Know more about how much insurance agents make.

Hello all,
I have decided to pursue a career as an independent ins. agent and am thinking of just focusing on health and life. I want to get to know all I can about these two lines of insurance and I am wondering if these two are a good choice to pursue as far as insurance agent commission goes. Can some one tell me what an average premium is for each of these policies and how this relates to my commission. How much do insurance agents make ? Thank you and I understand there are many variables but I am just talking about a ballpark figure. Say something like an auto policy 1000/yr and 15% new insurance agent commission, 10% renewal. TRhanks again.

Posted: 09 Mar 2008 05:27 Post Subject:

A lot depends on the state(s) that you write business.

Auto...about 2000 per year at 15% insurance agent commission.

Health...about 3500 per year at about 20% insurance agent commission.

Posted: 09 Mar 2008 02:53 Post Subject:

Ohio Health nailed it - 20% commission on average however my average premium is $4,100 per copy since I market to small business owners.

Renewals average 5% and health is much easier to market and sell as an independent agent then life or vehicle insurance policies.

Posted: 10 Mar 2008 06:39 Post Subject: Analyzing things should be your 1st priority!

Dear guest....don't you think it would rather be difficult for you to operate at both of these arenas...Life & health would often go hand-in-hand for many companies...but when it comes to working as an individual agent...to earn a handsome figure each term...you need to ensure that your database grows upon its potentiality. So, it could be better if you take one thing at a time.
Thanks,
RosalindM

Posted: 10 Mar 2008 09:04 Post Subject:

Dear guest....don't you think it would rather be difficult for you to operate at both of these arenas...



Yeah it may be easy to sell auto policy as it is the state requirement, but in terms of revenue earning the life and health insurance may get a rate higher than the auto policies.

Posted: 10 Mar 2008 12:20 Post Subject:

It's much easier to prospect for health than auto. Where do you find auto prospects outside of your natural market? However, people looking for affordable health insurance are everywhere.

Posted: 10 Mar 2008 01:16 Post Subject:

Guest,

Where are you located? My company is looking to contract some independent Life agents and each one of them are getting a very high insurance agent commission. Please let me know if your interested.

Posted: 10 Mar 2008 02:30 Post Subject:

Okay, I realize its early Monday morning and I might still be a bit "foggy" but, think I missed something here.

I have decided to pursue a career as an independent ins. agent and am thinking of just focusing on health and life. I want to get to know all I can about these two lines of insurance and I am wondering if these two are a good choice to pursue as far as commisions go. Can some one tell me what an average premium is for each of these policies and how this relates to my commision. Thank you and I understand there are many variables but I am just talking about a ballpark figure.



Doesn't it seem that we're gathering a little information about the L&H industry here?

Say something like an auto policy 1000/yr and 15% new commision, 10% renewal.



Then, from way out in left field, someone decides to throw in a little P&C. That should be illegal.............

If we have questions about L&H, we'll darn well address those. If you'd like to stick with the auto insurance challenges, you guys'll have to cover that.

Posted: 14 Mar 2008 08:25 Post Subject:

auto is a tougher arena to make it in...what other areas are overlooked..?

Posted: 15 Mar 2008 08:50 Post Subject:

I think we just have too many auto-explanation threads at the forums to make things simpler in terms of auto..

Posted: 15 Nov 2008 03:54 Post Subject: Health Insurance Commission

I think I have to move out of NJ :shock: ... an Ind Agent in NJ gets get 5-5.5% insurance agent commission on new small group health, 4.5-5% on renewals and about 7% on mid-large group health. Small group has to be written through a GA in NJ. No renewal commission on Life policies as far as I know.

Posted: 23 Nov 2008 01:34 Post Subject:

actually it is quite tough to be full-timer in the long run for this insurance business. becoz you may find 'auto 'a easy deal being it a mandatory for state but what about life?you need to work hard on it.health is very easy to pitch. :lol:

Posted: 18 Oct 2009 01:11 Post Subject: life, health vrs P &C

Sounds like none of you even own an agency. I actually own a rather large agency and sell all lines of insurance. Life and Health are good commissions for the short term as the renewals tend to be extreamly low. P & C is what really pays the bills. You need high renewals just to grow and keep the bills paid. In this economy life sales are way down and unless you represent the top health companies your health product probably won't be competitive at all. Starting out if you're not writting at least $3,000 a month in commission on the P & C side of things you won't be in business for more than 2 years.

Posted: 19 Oct 2009 11:25 Post Subject:

Starting out if you're not writting at least $3,000 a month in commission on the P & C side of things you won't be in business for more than 2 years.



It seems you're indicating that a guy who's not writing $3k a month has failed to understand the tit bits of selling P & C. It could also mean, a lesser motivation would be the cause to drive him out. Please explain it to us in a vivid way.

Posted: 24 Oct 2009 12:06 Post Subject: new broker

I am curious. I have "inherited" a insurance company with a very large affinity. Bringing a friend in to help direct the company how should they be compinsated ?

Posted: 24 Oct 2009 08:43 Post Subject:

I think it would be better if you'd break the compensation into fixed and variable components. you'd definitely need to see that the fixed element is good enough to help him sustain in that particular region. Apart from that you'd need to pay commissions upon achieving different levels of sales. Conduct market researches to know more about the earnings of your competitors in that particular field. This would probably give you an idea of the sales potential for your kind of business.

Posted: 06 Nov 2009 10:11 Post Subject: help!

P&C - The base salary is 25,000 plus commission. Commission paid on new business is 25% and renewal is 15% - is this good?? how much can i expect to make on commission??

Posted: 06 Apr 2010 04:38 Post Subject: Life insurance agent

I have an interview tomorrow with American income life for a buisness manager possition, ive been googleing all day too gain info on the subject of it and the income rates for the job and i havent found a thing, would that be commission or salary paid?

Posted: 09 Apr 2010 08:01 Post Subject: auto/home policies

How many auto/home policies can an independent agent sell the first year realistically? and what would be the earnings on 850 dollar premium on average?

Posted: 25 Jun 2010 09:56 Post Subject:

I'm with AmeriPlan. Even though I'm personally not an Insurance Agent, I have a lot of them on my team.

They do really well because they already have prospects coming in and they just have one more service to offer them. I think it really works out great for them since if you are working with someone that will not quailify or simply can not afford the monthly premium you'd then be able to present AmeriPlan.

Being licensed and selling life/health insurance is very profitable...its also very expensive to purchase leads, continuing education, etc. Things that are very hard to maintain if you are just starting out, you don't make a profit initially. AmeriPlan is different considering the monthly maintenance fee and the marketing is very affordable.

AmeriPlan offers daily pay, weekly bonuses, monthly residual income, awesome and easily attainable commission plan, bonus builder overrides etc.

Just thought I would share that for those looking to add a product line to your exisiting portfolio and in turn increasing your income.

Much success to you all!
~TaVona

Posted: 12 Nov 2010 06:52 Post Subject: commission

the insurance agent that wants to hire me is offer me 8% commission for auto insurance and 8% for house, 20% for life.. and no commission when renewing.. is this a fair offer?

Posted: 12 Nov 2010 10:28 Post Subject:

HARDLY FAIR!!

Although life insurance may not pay renewal commissions, auto and homeowner's both do. So not getting any renewal commission is a RIP OFF. Life insurance commissions (for cash value policies) usually starts at not less than 50% and can range to far more than 100% of the first year premium. Getting only 20% SUCKS!!

As for 8% on auto and homeowner's, consider this: the typical commission to an agent or agency for those products is about 20%-25%. So you would be giving 60% or more to the agent.

Unless you are being hired as a "solicitor" and not as an agent, these commissions are far too low. You're looking at a 40/60 split, with you on the short end. What is the agent offering to make up the difference?

If you are totally inexperienced, then I might consider it almost reasonable, but only if the agent is going to train you properly and then raise your split to at least 50/50 or 60/40 when you are capable of doing business on your own. An experienced agent would not accept less than a 75/25 split.

Posted: 29 Nov 2010 09:17 Post Subject: STARTING MY OWN AGENCY

I NEED SOME POINTERS ON STARTING AND MAINTAING MY NEW AGENCY FOR THE FIRST YEAR. I'M EXCITED ABOUT STARTING IT, BUT STILL A LITTLE NERVOUS AT THE SAME TIME.

Posted: 30 Nov 2010 02:50 Post Subject:

Do you have any prior experience in the industry? If not, you may find it more difficult than you ever imagined.

Posted: 01 Dec 2010 02:22 Post Subject:

You're starting an agency and looking for pointers here?

My advice...find someone you don't like much to pledge a bunch of collateral for your agency...they are going to lose that money.

Posted: 06 Dec 2010 08:27 Post Subject:

how much commision can you make off of a million dollar annuity

Posted: 07 Dec 2010 06:29 Post Subject:

As much as $80,000 from some companies. An 8% commission is fairly typical. But if you are in the business only for the commissions and not for the purpose of providing the right products to folks for the right reasons, then you need to reconsider your motives.

Posted: 10 Dec 2010 11:46 Post Subject: new business interest

Looking to write P & C in Iowa for commercial and personal to start. Intend to expand to offer life/health and annuities in the future. Any words of wisdom would be appreciated. Financial planning background/ obtaining a degree in finance & real estate...almost complete, and about a year of insurance background in commercial P & C lines. Any thoughts or pieces of advise? Keys to achieving success as an independant agent?

Posted: 11 Dec 2010 03:03 Post Subject: Becoming an insurance agent

Please tell me...is it better to clean up ones credit scores first or get the insurance sales training/licensure?

Posted: 14 Dec 2010 12:29 Post Subject:

Financial planning background/ obtaining a degree in finance & real estate...almost complete, and about a year of insurance background in commercial P & C lines. Any thoughts or pieces of advise? Keys to achieving success as an independant agent?

The degree in finance and real estate may be nice to have, but is unnecessary for success in our industry. What makes an agent successful is knowing his/her products and finding people who want/need them, and then being able to give a product presentation and not being afraid to ask for the check.

Prospecting and appointment setting activities are the most beneficial for establishing a business.

Posted: 14 Dec 2010 12:30 Post Subject:

is it better to clean up ones credit scores first or get the insurance sales training/licensure?



Did you want to BUY insurance or SELL insurance?

Posted: 11 Apr 2011 10:34 Post Subject: sales jobs

I must say that I am shocked at how little insurance agents make. I want to be an agent myself. I am currently knocking doors selling cable, and making as much as an insurance agent. The only thing that entices me to pursue becoming an agent is because I feel like a scum bag knocking on doors day after day selling someone something that they already have. The worst part about this job is minipulating the customer into believing that ours is better than theirs when there is really no differance and bashing the competitor in order to make a sale. I feel like a politition- bashing the other person running, not talking about how I can make life better. When I go home at night, all I can think about is what im doing as a job, and how ashamed I am to be doing it.

Posted: 06 Sep 2011 08:19 Post Subject: if now want to stop online sale my house..than why have to p

can you help me about i not want to sale the house in this time but agent make online in 3 week now why have to pay 1,500 $ for agent ? i think maybee that is so mush money:( can you explan to me please...

Posted: 14 Sep 2011 09:10 Post Subject: Commissions after death?

When an insurance agent passes away while actively collecting various commissions, does the surviving spouse continue to receive these commissions?
Thanks

Posted: 05 Oct 2011 07:48 Post Subject: Final Expense

What is generally the agent commission on final expense policies?

Posted: 07 Oct 2011 08:48 Post Subject:

I am not sure as how much you can earn by selling final expense insurance policies. I think it depends from one one company to another. However, I've often heard that the agents don't have to wait for long in order to receive the commission after selling final expense insurance policies.

Posted: 09 Oct 2011 06:43 Post Subject:

I remember it took a while to have enough clients and customer base to stand on my own as an insurance agent - first working for Farmers and then going on my own - so there is potential out there, you have to build up a reputation and be patient.

Posted: 15 Jun 2012 01:54 Post Subject: always been told I should sell insurance

I think I am ready to learn. What does it take to learn and use my sales skills to make it?

Posted: 15 Jun 2012 01:54 Post Subject: always been told I should sell insurance

I think I am ready to learn. What does it take to learn and use my sales skills to make it?

Posted: 06 Oct 2012 04:48 Post Subject: as a farmer insurance agent

i want to start my career as a farmer insurance agent .what do you think should i search for another company or its a better idea

Posted: 10 Nov 2012 06:59 Post Subject: Interested in becoming an agent

Hello Sil I am interested in becoming an agent. I am outgoing, love people and a self starter. I currently work for a major insurance company in the billing dept. U think this coul b for me? I want an increase and a new venture in my life with more money of course.

Posted: 11 Nov 2012 04:32 Post Subject:

If you can make the transition from being on salary to being on commission, it could work for you, too.

Posted: 10 Dec 2012 09:01 Post Subject: American Income Life

I am in the process of obtaining my Licenses and I am a bit concerned about this employment. I was told the postion I was being interviewed for was Benefits Director, however everything since has been directed towards being licensed and sales. I have no experience in this area and I'm concerned about it. I personally dont care for pushy sales people.

Posted: 10 Dec 2012 09:09 Post Subject: American Income Life

Ok is AIL a reputable company and do they have a high retention rate of employees and customers?

Posted: 10 Dec 2012 09:10 Post Subject:

I personally dont care for pushy sales people.


I don't care for them either. But not all sales people are "pushy" -- some are professionals who actually know how to sell -- by asking questions and listening to the answers.

It sounds, however, that you have been misrepresented the nature of the position. Did they tell you it was 100% commission to begin with, or did they just tell you you can make $100,000 per year? You probably thought there was a salary in there somewhere, right?

Posted: 10 Dec 2012 09:28 Post Subject:

If AIL = American Income Life Insurance Company, they are "reputable". Their agent retention is probably about the same as any insurance company -- 10%-20% after 1 year. Hire 10, and 1 or 2 will still be around a year from now.

Posted: 10 Dec 2012 09:37 Post Subject: American Income Life

It was a 3 part interview phase in which I passed or was considered for the 3rd phase at which time I was told I was hired. After I get my licenses and training I would start getting paid. In this jobless economy I was just excited at the time of being hired. Now after purchasing the training program, paying for finger printing and the license test, its all seeming as I will be just another sales agent working on commission. Can I get a refund on the items I have purchased so far?

Posted: 10 Dec 2012 10:32 Post Subject:

Can I get a refund on the items I have purchased so far?


You can try, but the answer is probably not. But the good news is that as a licensed life agent (or life and health), you can work for any insurance company. You could work for AAA selling insurance and annuities to members, you could work as a rep for an HMO or PPO, and earn a salary and commission bonus.

Where you are may not be the perfect fit for you, but you'll never know if you don't try. Study the materials, get your license, let AIL train you, and see how things go. Commission can be a scary thing, but from my perspective, it's a lot better than being on salary, because there is no limit to what you can earn. As long as you are doing the right things for people the right way.

You don't have to be "just another sales agent". You can be much better than that. But if you quit at this point, you have no one to blame but yourself. As I've told hundreds of students, it could take you two years to figure this out. What if you stopped after 23 months?

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.