How much does a life insurance agent make?
Being a life insurance agent sounds intriguing, but how much does a life insurance agent make? It depends on many different factors. Life insurance agents make anywhere from $55,000 to $89,000 annually based on where they live, commission options, and more. If you're willing to spend a lot of time developing your career and are good at communicating with people, becoming a life insurance agent may be a good fit for you.
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Licensed Insurance Agent
Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients. Scott quickly grasped the unique insurance requirements of his...
Scott W. Johnson
Insurance Claims Support & Sr. Adjuster
Kalyn grew up in an insurance family with a grandfather, aunt, and uncle leading successful careers as insurance agents. She soon found she has similar interests and followed in their footsteps. After spending about ten years working in the insurance industry as both an appraiser dispatcher and a senior property claims adjuster, she decided to combine her years of insurance experience with another...
Kalyn Johnson
Updated June 2023
- Life insurance agents make anywhere from $58,000 to $89,000 annually, depending on where they live
- In some U.S. states, life insurance agents are required to pass a licensing exam
- Many life insurance agents quit the profession because of the overwhelming time commitment
If you’re interested in selling life insurance, one of your first questions is probably, “how much does a life insurance agent make?”
Life insurance agents are responsible for explaining different life insurance options, selling life insurance plans from different companies, and answering policyholders’ questions.
If you’re interested in learning more about whole or term life insurance or looking to purchase a life insurance policy, one of the best things to do is research different companies and rates online.
You can use our free quote tool above to find and compare life insurance rates online to see which companies offer the best deals.
How much does a life insurance agent make?
An insurance agent’s salary will vary based on the products they sell, where they live, and more. For life insurance, some agents are commission-based, while others receive a set annual salary.
The table below gives the average annual salaries for life insurance agents in the different U.S. states:
| State | Annual Salary |
|---|---|
| Alabama | $70,748 |
| Alaska | $74,004 |
| Arizona | $75,095 |
| Arkansas | $64,568 |
| California | $70,590 |
| Colorado | $68,730 |
| Connecticut | $76,047 |
| Delaware | $68,556 |
| Florida | $68,275 |
| Georgia | $72,441 |
| Hawaii | $77,809 |
| Idaho | $66,062 |
| Illinois | $64,218 |
| Indiana | $74,613 |
| Iowa | $69,205 |
| Kansas | $69,383 |
| Kentucky | $65,791 |
| Louisiana | $70,510 |
| Maine | $80,085 |
| Maryland | $73,349 |
| Massachusettes | $79,965 |
| Michigan | $64,491 |
| Minnesota | $72,706 |
| Mississippi | $65,007 |
| Missouri | $68,220 |
| Montana | $75,875 |
| Nebraska | $72,157 |
| Nevada | $73,422 |
| New Hampshire | $87,121 |
| New Jersey | $75,263 |
| New Mexico | $69,053 |
| New York | $89,872 |
| North Carolina | $58,753 |
| North Dakota | $73,563 |
| Ohio | $72,210 |
| Oklahoma | $67,064 |
| Oregon | $70,361 |
| Pennsylvania | $76,771 |
| Rhode Island | $74,664 |
| South Carolina | $68,947 |
| South Dakota | $71,414 |
| Tennessee | $72,740 |
| Texas | $63,745 |
| Utah | $71,115 |
| Vermont | $82,353 |
| Virginia | $71,212 |
| Washington | $77,731 |
| West Virginia | $78,092 |
| Wisconsin | $72,655 |
| Wyoming | $80,242 |
As you can see, where you live as a life insurance agent can have a tremendous impact on how much money you make.
You may be wondering, “how much does a life insurance agent make in commission?” or “how much does a life insurance agent make their first year?”
The answers to questions like these depend on where the agent lives, the company the agent works for, whether the agent receives company leads, and more.
If you’re interested in selling life insurance products in your state, speak to a life insurance company or different insurance agents to see what the job is like, what qualifications you need to meet, and whether the career would be the right fit for you.
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How can I become a life insurance agent?
Learning how to become a life insurance agent may seem a bit daunting at times.
Like many other jobs, the career of a life insurance agent has a bit of a learning curve. It will take time to meet all the standards and requirements in order to get your first job as an agent.
Most companies do not require any sort of educational background in order to become a life insurance agent. However, some companies will require that you have a few years of experience before they hire you.
In certain states, you may have to take a licensing test in order to sell insurance products, so you will want to do your research to learn what your state requires.
Getting hired as a life insurance agent is the easy part. Once you find a job, the hard work begins.
Why do a lot of life insurance agents quit?
The life insurance agent career does not have a high retention rate. Plenty of individuals start as life insurance agents but move on to other careers. If you’re wondering why, you’re not alone.
When ex-life insurance agents are interviewed to see why they left the career, many of them say the work was too much to keep up with. In addition, selling life insurance products and recruiting individuals to purchase different policies is exhausting.
As people want to start families, they find that the job of a life insurance agent is too time-consuming. They often move on to find something more suitable than discussing whole life insurance policy types for hours on end.
The prospect of constant rejection, and sometimes even hostility, is another aspect of the job that wears on life insurance agents over time.
If you know you don’t want to spend all your time working, or if you know you’re sensitive to rejection, the job of a life insurance agent may not be the best fit for you.
Are there benefits to becoming a life insurance agent?
As is true with many other careers, there are positives and negatives to being a life insurance agent. Though some agents find it hard to keep up with the work for long periods of time, they sincerely enjoy things about the job.
First, life insurance agents can make good money. This is especially true if an agent receives a significant commission off insurance sales. The annual salary is what makes most life insurance agents maintain their careers.
Life insurance agents will probably not have a difficult time finding a job. There are countless insurance companies that depend on life insurance agents to sell their products.
Lastly, life insurance agents have the opportunity to receive passive income based on their previous sales. Agents can continue to receive a commission on their sales every year a policyholder renews a policy. So, income for an agent can grow over time.
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Should I become a life insurance agent?
If you are looking for a new career and are open to spending a good amount of time perfecting your craft, selling life insurance may be a good career for you.
As a life insurance agent, it’s important that you relate well to people, communicate clearly and effectively, and take your time answering different questions.
If you’d like to learn more about different life insurance products, or if you want to buy life insurance, enter your ZIP code into our free tool below to compare different life insurance rates in your area today.
Frequently Asked Questions
Can life insurance agents make a comfortable living?
Yes, life insurance agents have the potential to make a comfortable living. The insurance industry offers lucrative opportunities for agents who are dedicated, hardworking, and skilled in building client relationships. Successful agents can earn a substantial income that enables them to support their desired lifestyle. With a strong work ethic and the ability to meet clients’ insurance needs, agents can enjoy a comfortable living and financial stability.
Are there opportunities for life insurance agents to earn bonuses or incentives?
Absolutely! Many insurance companies offer bonuses and incentives to reward high-performing life insurance agents. These additional earnings can come in the form of performance-based bonuses, trips, recognition programs, or other incentives. Such rewards provide agents with further motivation to excel in their sales efforts and build their client base. By consistently meeting or exceeding their targets, agents can unlock additional financial benefits and perks.
Is there potential for career growth as a life insurance agent?
Yes, the life insurance industry offers significant potential for career growth. Agents can progress in their careers by consistently meeting sales targets, expanding their client base, and demonstrating leadership skills. With experience and a proven track record, agents can advance to managerial positions, such as sales manager or agency director, where they oversee and mentor a team of agents.
Can life insurance agents build a stable income over time?
Absolutely! Life insurance agents have the opportunity to build a stable income over time. By establishing long-term relationships with clients and providing them with ongoing insurance solutions, agents can generate a consistent stream of renewals and referrals. As agents continue to build their client base and maintain strong customer relationships, their income becomes more stable and predictable. This stability allows agents to plan for the future and enjoy the financial security that comes with a successful insurance career.
Are there any additional benefits besides income for life insurance agents?
Yes, being a life insurance agent comes with various additional benefits beyond income. Agents often enjoy the flexibility of working hours, allowing them to create a work-life balance that suits their needs. They also have the opportunity to make a positive impact on people’s lives by helping them protect their families and plan for the future.
Can life insurance agents enjoy a high level of job satisfaction?
Yes, many life insurance agents find their work fulfilling and experience a high level of job satisfaction. The nature of the job, which involves assisting individuals and families in securing their financial futures, can be personally rewarding. Agents often build strong relationships with their clients, and the ability to provide peace of mind through insurance coverage brings a sense of fulfillment. Furthermore, achieving sales goals and earning recognition for their accomplishments can boost agents’ job satisfaction and motivation.
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