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How Much Money Do Insurance Agents Make?

One of the most common questions asked by students who enroll in America’s Professor’s online insurance agent exam preparation courses is a fairly obvious one: “How much money can I expect to make?” The good news is, most insurance agents can expect to make well above the average median income. While the exact amount of money an individual insurance agent makes can vary wildly between agents, statistics regarding the earnings of insurance agents in the U.S. shows that most of them are capable of making a comfortable income from their work.

Insurance agent salary

Insurance Agent Income

The most recent government data regarding the average income of American insurance agents was compiled in 2012. According to that data from the Bureau of Labor Statistics:

  • The median annual wage for insurance agents was $48,150.
  • The highest paid 10% of insurance agents earned more than $116,940 annually.
  • The lowest paid 10% of insurance agents earned less than $26,120 annually.

As the numbers show, there is a wide range of possible incomes for insurance agents. Because the amount of money insurance agents earn is comprised largely of commissions and bonuses, the number of sales an insurance agent makes is the biggest factor that contributes to the disparity between the highest and lowest paid of insurance agents. Factors such as the price of the plans they sell and the type of insurance they specialize in also contribute to the wide range of incomes for insurance agents.

How Do Insurance Agent Incomes Compare to the Average?

According to the most recent census data, the average median salary for an American worker is $26,695 per year. If you were paying attention to numbers regarding the income of insurance agents, above, you’ve probably already noticed that the average median income in the insurance industry is nearly twice that of the average median income per person. With the lowest 10% of insurance agents earning around $26,120, even those insurance agents who are paid below the industry average can expect to be making more than the average American income.

More Good News for Insurance Agents

In addition to the already high earning potential of insurance agents, the same Bureau of Labor Statistics report that recorded insurance agent incomes in 2012 also notes that the industry is expected to do nothing but grow. By 2022 the insurance industry is expected to have grown by at least 10% from where it was in 2012, and the demands of an increasingly aging population and federal regulations such as the Affordable Care Act are only creating more demand for insurance among American consumers. If things look good for insurance agents now, they’re only going to get better.

If you’re interested in having a lucrative career as an insurance agent, the first step you have to take is to become licensed in your state. America’s Professor offers online video prep courses for multiple state licensing exams, taught by industry professionals with combined decades of experience in the field. You can register today or learn more by calling 800-870-3130.

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Jeannie
Jeannie
1 year ago

I am an life insurance producer. It is very possible to make $400,000. Definitely need to continue getting educated on obtaining different licenses to work up to the high paying commission products. You left out annuities… Retirement planning is the way to go… Rollover 401K , 403b, CD’s, company retirement IRA’s etc.. It’s a no brainer. Love my job! People are very grateful for our help..

Ann
Ann
1 year ago
Reply to  Jeannie

This is awesome to hear I’m studying now to get my license. I look forward to taking on this career.

Chris
Chris
1 year ago
Reply to  Ann

Do you know why new agent give up because they have a huge advertising bills min $700.00 per week and you lose 20% of your business because people cancel there policy for a cheaper price that they find and people get depressed and leave the field. And you will be working 7 days a week 13+ hours a day. If you still want to be a agent just have a lot of money to fall back on and the job you are considered a contractor and need to spend money on a accountant to set up your business.

Alan Doyle
Alan Doyle
9 months ago
Reply to  Jeannie

Just getting started and would love to get to the 400k per year! Would like more info!!!!

Patricia
Patricia
7 months ago
Reply to  Jeannie

Hi Jeannie,
I’m contemplating on joining and I live in Ohio but currently researching as much as I can. If you don’t mind me asking were u experienced and how do you obtain your customers?

Bruce Kennedy
Bruce Kennedy
2 years ago

The insurance industry is very lucrative. If you are creative and have a team of producers working in the field with you, you can definitely earn $400,000 a year or more. It is not uncommon for our first year reps to earn over $125,000 as a sole producer. The stats on the internet showing incomes of $26,000 are very misleading. This is through static insurance systems that purposely control and restrict your income. Independent reps with appointments to multiple insurance company’s can earn a exceptionally good living. Yes, it is more then possible to earn 400k annually in the insurance… Read more »

Guy Craig
Guy Craig
9 months ago
Reply to  Bruce Kennedy

is that AFTER advertising expenses, etc

Levoris Harmon
Levoris Harmon
6 months ago
Reply to  Bruce Kennedy

Very informative! Thank you. I’ve spent the past 20 years in the military and have decided to retire and do something different that seems exciting. I was recently hired on by Equis Financial and I’m currently studying to attain my insurance license. I have some experience in recruiting and sales so I’m hoping that I can harmonize that experience with the knowledge I gain in the insurance industry and become successful. Many people have told me that with tenacity and charisma, this industry can be very lucrative.

Cheikh Ahmed Mbareck
Cheikh Ahmed Mbareck
1 month ago
Reply to  Bruce Kennedy

Hi Bruce,
Can you please give more information about this “Independent reps with appointments to multiple insurance company’s can earn a exceptionally good living”
Best,

Tatiana Gerberg
Tatiana Gerberg
22 days ago

I am insurance broker for 22 years and can help you to get appointed with multiple companies. email to me tatianager@yahoo.com

Todd Davis
Todd Davis
7 months ago

I make about $285 to $340K per year, but I also have a securities license. I make about $200 K at the get go due to renewal commissions. Get into the senior market, ie medd supp and Medicare adv plans. They are so confused out there. Im basically the only game in town. I work 8:00 to 3:00 now. But, I paid my dues. Started captive but now have had my own agency past 20 years. PC lic but I do none of that.

Muhammad Odom
Muhammad Odom
6 months ago
Reply to  Todd Davis

Question Todd, So I have my Personal lines License , to be a big game hunter in this field. What license would you recommend ?? P&C ? I’m told Life Insurance is bad to go into since Obamacare but please lol any advice I will take!

Tatiana Gerberg
Tatiana Gerberg
22 days ago
Reply to  Muhammad Odom

I am insurance broker for 22 years and can help you to get appointed with multiple companies. email to me tatianager@yahoo.com

Kimberly Ann Pucci
Kimberly Ann Pucci
1 month ago
Reply to  Todd Davis

Hi Todd, I am just now working on getting my life and health insurance license. I am in my early 50’s and I had to change careers due to a layoff at my job. I live in Colorado but I am planning on moving to Florida next year. Do you have any suggestions that could help me get new clients and that would help me boost myself into the 100k to 200k per year income? Thank you!

Tatiana Gerberg
Tatiana Gerberg
22 days ago

I am insurance broker for 22 years and can help you to get appointed with multiple companies. email to me tatianager@yahoo.com

trackback

[…] a motivating factor for some of those looking to gain a job in the insurance industry. The insurance agent salary of the highest 75 percentile rang in at about $73,650, while the lowest 25 percentile came in at […]

Tanya C
Tanya C
2 years ago

I am an insurance producer now and I only receive about 50% of the premium for each policy. But I am wondering is this typical? I am new to this job and get frustrated because I am wondering how someone could even live off of this? I have not seen a paycheck yet and have been doing a lot of foot work and traveling and wondering is this even worth it? please any advice is helpful

Charles Marr
Charles Marr
1 year ago

Hi I’m Charles I’m 21 and looking to get into insurance but I am scared of commission. I cant go in and not make much the company that wants me is American income life any advuce?

Crystal
Crystal
1 year ago

I am looking to get into this program. My only concern is my background. I would like to eventually get my license but am I able to do so even though my background is not clear? It’s not like I did terrible crimes but I just wouldn’t want this to hold me back and I’d like to peruse this. Thanks in advance !

Christine Melsopp
Christine Melsopp
1 year ago
Reply to  Crystal

Hi, I know it’s late but have you started studying for your license yet? If you are really worried about your background hire a licensing lawyer BEFORE you apply for your license. They will help you with the application process

Tammy
Tammy
8 months ago
Reply to  Crystal

Crystal, They check for felonies and for crimes involving theft or money. They don’t care about traffic tickets. They will ask about misdemeanors. You simply have to send in a copy of the court case, show you paid your fine etc. Again, the misdemeanor needs to be a simple one, like dog at large.

Janelle
Janelle
1 year ago

Hello, my name is Janelle. I am very interested in selling insurance but, I’m unsure of which license to get first. I was leaning towards health and life. Mainly, because, I have worked in the medical field for 5+ years but want a step in a new direction career wise. After doing some research, I am now leaning towards property and causality. I have read it is better for beginners. Any insight? Thank you in advanced!

James
1 year ago
Reply to  Janelle

We are always hiring

Fred B
Fred B
2 years ago

Which is more lucrative, personal insurance or commercial?

Barbara Sellner
Barbara Sellner
2 years ago

I was curious because on a Dave Ramsey radio show, a caller came in saying she was an insurance. And she made $400,000.00 per year. She didn’t go into more details than that. I was wondering what kind of insurance agent makes that lind of money?????

April Buie
April Buie
2 years ago

How do you go about obtaining the licensure for casualty and property?

pedro padilla
pedro padilla
2 years ago

how can I become an insurance agent

Debra Miller
1 year ago

I’m considering getting my 215 license, would this be a good starter license? I’ve been working in retail for 30 years and need a change. Is it too late for me to get started at almost 50? Please lead in in the right direction.
Thank You!

Getachew
Getachew
1 year ago

Where do you recommend for study guide or for class to be certify insurance agent

Hi Imrandom
Hi Imrandom
1 year ago

How much money do insurance agents make? I am just curious because I am a licensed chiropractor wanting to be an insurance agent. I was doing some research on it but couldn’t find out how much they make a year. Sorry to bother!

victoria
victoria
1 year ago

I am interested in Property & Casualty License in South Carolina, Just relocated from FLA DO I need to have a sc drivers license right now for paperwork in regard to testing and fingerprints etc?

Margie
Margie
1 year ago

As a independent 215 licensed agent, can you be appointed with more then one company? Please advise. Thank you!

Betty A MILLER
Betty A MILLER
1 year ago

Is the P&C license sufficient to pursue an underwriting position?

caro
caro
10 months ago

I’ve read that you need to buy “leads”? Meaning info of potential clients.

Tony
Tony
10 months ago

As an independent agent, which broker(s) pays the highest comission for car insurance?

Stephen
Stephen
9 months ago

Is it common for healthcare providers to get involved in insurance sales on the side? Health insurance or Medicare supplements?

Brittany Lanham
Brittany Lanham
8 months ago

Hello, I’m 21 and have just obtained my associate’s degree and I’m now working towards my bachelors in business. Will this give me an advantage when looking for an agency to work with and if the position offers salary could I potentially make more starting off due to my background? I’m looking into jump starting my career before graduation. Can I be a full time student and still make money working part time as an insurance sales agent? Any advice?

Boggy Really
Boggy Really
8 months ago

What you make, Or the numbers written on your offer letter, Or the name over the building you enter might differ from between a $ for millions a year.
Yet “Once” you water all the BS down, millions of past , current and future employees will struggle to make rent and living expenses.

Trina
Trina
7 months ago

I have my accident, health, life license. So far, I have only used my life license for life products. However, I am interested in doing all three. My goal is to increase my income 100%. Then eventually obtain my investments license.

Al Fuentes
Al Fuentes
5 months ago

Im studying for CIC license and sponsored by a reputable local Agency to sell Commercial P&C insurance. They offer base salary, $50% Commission on all New business with 30% residual income.(That’s where income grows). Key is to partner with a reputable insurance Agency/group. Like everything else, if you are expecting to make $$ easily you WILL fail.

Mousa Major
Mousa Major
3 months ago

would anyone agree that selling insurance would make a great side hustle?

Tatiana Gerberg
Tatiana Gerberg
22 days ago

I am in insurance industry for 22 years and know this industry very well. If you build your book of business and have multiple companies to serve your clients needs, than you can move much faster. If you have good mentors who teach you not only product side, but a business side you will move much quicker. Every successful business take time and effort to build. I love this business because no overhead, and I can run my business from any part of the world. Tatiana Gerberg

nick m
nick m
2 years ago

how much of a commission does my farmers insurance agent make on my home and auto policies which total $5,848 per year

Chris
Chris
1 year ago

I’m a life agent too don’t forget about the lost business when costumers cancel there policy you loose your a$$. Let’s talk real numbers 20% lost business every year that number. Here is the thing if you are not a very good underwriter and price the customer policy correctly it is going to be replaced because everyone is looking to save more money and constantly have insurance companies calling them to sell insurance. This is a bad occupation and you will work 7 days a week and spend unbelievable amount of money on advertising to make good money.



We make every effort to ensure that the content on our site is accurate but it’s always recommended to you contact your state’s Insurance Licensing Department or Test Provider for information. Thank you. – The AP Team

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