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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
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Jeannie

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
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Ann

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

Chris
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Chris

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.

Bruce Kennedy
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Bruce Kennedy

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 »

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[…] 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 […]

Fred B
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Fred B

Which is more lucrative, personal insurance or commercial?

Charles Marr
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Charles Marr

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
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Crystal

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 !

Janelle
Guest
Janelle

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!

Barbara Sellner
Guest
Barbara Sellner

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
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April Buie

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

pedro padilla
Guest
pedro padilla

how can I become an insurance agent

nick m
Guest
nick m

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

Tanya C
Guest
Tanya C

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

Debra Miller
Guest

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
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Getachew

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

Hi Imrandom
Guest
Hi Imrandom

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
Guest
victoria

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
Guest
Margie

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

Betty A MILLER
Guest
Betty A MILLER

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

Chris
Guest
Chris

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.


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