How Hard is it to Earn a Living as an Insurance Agent? (2024)

It is not easy to make a living in insurance, but it is not as hard as you might think. As with any type of sales, becoming an insurance agent can be one of the best paying hard jobs or a terrible paying easy job.

Dedicated agents will become successful at insurance sales, just like at any other job. One benefit, however, that insurance agents have over other career choices is that they are perhaps more likely than some to see their efforts come to bear fruit, as compensation is directly correlated to performance.

If you are wondering what type of agent you should be, keep in mind that while the principles and basics of insurance carry over between lines, the actual day to day routine of agents in the different fields (and even with different companies) can be very different.

One of the best ways to get a better feel for what you'll be getting into is to ask an agent in your field and, if possible, in the same company. Often recruiting managers can be of assistance, but it can also be helpful to talk to other agents about how easy it was for them to make a living as agents when they were first getting started in the industry, and how that changed over time.

How hard is it to earn a living if I decide to become an insurance agent?

How Hard is it to Earn a Living as an Insurance Agent? (2024)

FAQs

How Hard is it to Earn a Living as an Insurance Agent? ›

It is not easy to make a living in insurance, but it is not as hard as you might think. As with any type of sales, becoming an insurance agent can be one of the best paying hard jobs or a terrible paying easy job. Dedicated agents will become successful at insurance sales, just like at any other job.

Is it hard to make money as an insurance agent? ›

Key Takeaways. The career of a life insurance agent is lucrative but involves constant hustling, networking, and many instances of rejection before a sale is ever made. Life insurance agents might be given a small salary to get started but are otherwise primarily dependent on commissions to make a living.

Can you make a living as a life insurance agent? ›

Annual income for a life insurance agent can vary from as little as $28,000 per year to as much as $125,000 per year.

Do life insurance agents really make a lot of money? ›

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.

What is the hardest part of being an insurance agent? ›

An agent who is only out to earn a commission, regardless of the needs of the client, is not likely to last long in the business. Agents and brokers who listen carefully to what their clients and prospects say will be able to earn their trust, which is the hardest part of their job.

What are the cons of being an insurance agent? ›

Cons of a career selling insurance
  • 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.
Jan 22, 2024

What kind of insurance agent gets paid the most? ›

High Paying Insurance Jobs
  • Health Insurance Specialist. ...
  • Insurance Broker. ...
  • Liability Claims Representative. ...
  • Insurance Adjuster. ...
  • Insurance Manager. ...
  • Final Expense Agent. ...
  • Life Insurance Actuary. Salary range: $79,500-$98,500 per year. ...
  • Insurance Loss Control Surveyor. Salary range: $79,500-$98,500 per year.

What is the most profitable insurance to sell? ›

Life insurance is the most profitable—and the hardest—type of insurance to sell. With the highest premiums and the longest-running contract, it brings in cash over a long period of time. In the first year, agents make the largest annual sum on a policy, bringing in anywhere from 40–120% of the policy premium.

How long does it take to make money as an insurance agent? ›

Most businesses don't make any profit in their first year of operating. It could take anywhere from 18 to 24 months for your insurance sales to actually provide profit. Don't feel discouraged. Every small business owner has to clear this hurdle.

Why did I quit being an insurance agent? ›

#1 Low Motivation

To be a thriving insurance agent, you have to want to succeed. Failure to work hard is one of the top reasons people in this industry want to call it quits. While it's true that this job isn't easy, it's also true that it can be very rewarding when you allow it to be.

Why do most life insurance agents fail? ›

Insurance agents succeed when they prioritize their customers' needs over their own profits. The most commonly cited reason insurance agents fail is that they fail to listen to their customers and take the time to find the best product to suit their needs.

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.

How hard is selling life insurance? ›

A career as a life insurance sales professional can be challenging. The competition is fierce, and you may experience a lot of rejection before a successful sale. Conducting business in the comforts of your home isn't any different. You should be willing to put in the effort for your venture to grow.

Can a insurance agent be a millionaire? ›

It isn't the most glamorous profession, and it often gets associated with pushy salespeople that force their products down your throat. But here is the reality: there is a lot of money in the money business! The financial services industry has created more millionaires than any other industry.

Is the insurance industry a stable career? ›

You Can Enjoy Increased Job Security

Nothing is guaranteed in life, but some professions have more stability than others. Insurance is widely considered an “evergreen career,” one which typically offers excellent job security.

Do introverts make good insurance agents? ›

As an insurance agent, you may think that being an introvert is a disadvantage when it comes to selling insurance. However, being introverted can be an advantage in this industry, as introverts often excel at building deep relationships and listening to the needs of clients.

How profitable is an insurance agent? ›

For auto and home policies, captive insurance agents earn about 5% to 10% of the entire premiums paid for the first year, while independent agents receive about 15%. Commission rates for renewals range between 2% and 15%, averaging around 2% to 5%, regardless of the type of agent.

Can you be successful as an insurance agent? ›

Having a strong work ethic works hand-in-hand with having good customer service skills. Being proactive both when developing new client relationships and maintaining current client relationships is key to a successful career as an insurance agent.

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