How Much Can You Make Selling Life Insurance

Due to the aging population, selling life insurance is becoming an increasingly popular career choice. Life insurance provides individuals with financial protection in the case of an unexpected death, and selling it allows you to help them secure their future. 

How Much Can You Make Selling Life Insurance?

As a licensed insurance agent, I understand the appeal of selling life insurance. It is a growing industry with a high earning potential. When deciding whether or not to pursue a career in selling life insurance, it is important to know how much you can expect to make. In this article, we will discuss the factors that affect life insurance, the average commission, and how to increase your earnings. Let’s get started!

How Much Do Life Insurance Agents Make?

On average, life insurance agents make between $40,000-$85,000 per year. It is a highly competitive niche that requires tons of work from the salesman but it can be both fulfilling and lucrative.

I’ve sold many life insurance polices (term, whole, universal life insurance) and like some aspects of the business and dislike others.

One of the best things about selling life insurance (aside from helping people) is the ability to make large commissions. Selling one policy can produce commissions in the tens-of-thousands of dollars. But on the other hand, selling life insurance typically doesn’t allow for any renewal commissions!

Work with Us to Increase Insurance Sales

Let’s Talk

Are you an insurance agent who wants to build a sales pipeline that never runs dry? Look no further. Contact us and discover how we can help you take your sales to the next level!

Factors That Affect Life Insurance Commission

As a life insurance agent, I know that a lot of people consider selling life insurance due to the earning potential. Here’s a list of things that affect life insurance commissions:

Type Of Life Insurance Policy: The type of life insurance policy a client purchases can greatly impact the commission earned by a salesperson. For example, a whole life insurance policy generally has a higher commission rate compared to a term life insurance policy. This is due to the fact that whole life insurance policies have a savings component and offer a cash value over time.

Insurance Company: The insurance company you represent can also play a role in determining your commission. Some insurance companies offer higher commission rates than others, so it’s important to research and compare commission structures when selecting an insurance company to work with.

Experience And Qualifications Of Salesperson: As an insurance salesperson, your experience and qualifications can affect your commission rate. A licensed and experienced agent is often able to negotiate a higher commission rate with their insurance company. 

Sales Volume: The amount of life insurance policies sold can also impact a salesperson’s commission. Insurance companies often offer bonuses or increased commission rates for meeting certain sales quotas. As a result, consistently selling a high volume of policies can result in a higher overall commission.

Geographic Location: The geographic location in which you sell life insurance can also affect commission. Insurance commissions can vary by state, so it’s important to research and understand the laws and regulations in the area in which you plan to sell insurance.

Market Competition: Finally, market competition can impact commission rates. In a highly competitive market, insurance companies may offer higher commission rates to attract and retain salespeople. On the other hand, in a less competitive market, commission rates may be lower. 

Average Commission For Life Insurance Sales

As an insurance professional, I understand the importance of understanding what you can expect on average for your commission during your career planning. 

Type of PolicyCommission Rate
Term Life Insurance50%-125% of the first year’s premium, no renewals
Whole Life Insurance50%-100% of the first year’s premium, 2%-5% of subsequent premiums
Universal Life Insurance60%-100% of the first year’s premium, 2%-5% of subsequent premiums
Variable Life Insurance50%-90% of the first year’s premium, 2%-5% of subsequent premiums

The average commission for life insurance sales can vary based on the type of policy sold. A whole life insurance policy typically has a higher commission potential compared to term life insurance. This is because whole life (and any permanent life insurance such as universal life etc) are more expensive.

Because life insurance commissions are based upon the premium, the higher the premium the more the commissions!

Increase Your Earnings As A Life Insurance Salesperson

As an independent insurance broker, I understand the importance of maximizing your earnings, especially as commission can cause your salary to fluctuate. Here are ways to increase earnings as a life insurance salesperson:

Specialize In A Certain Type Of Life Insurance: Specializing in a specific type of life insurance, such as whole life insurance, can increase your earnings as a salesperson. By focusing on one type of policy, you can become an expert in that area and potentially negotiate a higher commission rate with your insurance company. I’ve seen many salesmen do this with success.

Obtain Advanced Certifications: Obtaining advanced certifications and continuing your education can demonstrate your expertise and potentially increase your commission rate. By keeping up-to-date with the latest industry trends and knowledge, you can position yourself as a valuable asset to your insurance company and increase your earnings.

Focus On High-Risk Clients: Focusing on high-risk clients, such as those with pre-existing medical conditions, can also increase your earnings as a life insurance salesperson. These clients may require a higher level of coverage, resulting in a higher commission for you.

Frequently Asked Questions

How much money can you earn by selling life insurance policies?

The amount of money you can earn by selling life insurance policies depends on factors like your sales skills and the number of policies sold. Income can vary greatly, but it’s common to earn a commission based on the premiums sold.

Which type of insurance is the most profitable to sell?

The most profitable type of insurance to sell typically depends on the agent’s expertise and target market. However, commercial insurance and specialized policies often yield higher commissions than personal insurance lines.

Is it difficult to earn a living by selling insurance?

It can be difficult to earn a living by selling insurance, especially for those new to the industry. The success rate varies, but building a steady client base and mastering sales techniques are critical factors.

Does selling life insurance cause stress?

Selling life insurance can cause stress due to the pressure of meeting sales targets and managing client expectations. Additionally, the commission-based income structure can lead to financial uncertainty, which may contribute to stress.

Can you become a millionaire by selling life insurance?

It is possible to become a millionaire by selling life insurance, but it requires dedication, hard work, and a strong sales strategy. Agents who excel in their field and establish a large, high-quality client base can achieve significant financial success.

Is it a wise decision to sell life insurance?

Selling life insurance can be a wise decision for those who are passionate about helping others secure their financial futures. However, it’s essential to consider factors such as job stability, personal motivation, and the ability to thrive in a sales-driven environment.


As an insurance agent, I understand that selling life insurance is an appealing career choice, and it’s important to understand the factors affecting the commission of life insurance salespeople, such as policy type, experience, and location. Be sure to follow our provided tips to increase earnings, such as specialization, obtaining certifications, and using technology. By understanding the commission structure and implementing these strategies, life insurance agents can build a successful career.

If you liked this blog check out our other insurance articles on: