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 do insurance agents 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.
How much do Life Insurance Agents Make?
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 How Much Money Insurance Agents Make
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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