Careers · The money
How much do life insurance agents make in 2026?
The government’s number, why it’s misleading for commission agents, and the simple math that decides what you’ll actually earn.
The short answer
The U.S. Bureau of Labor Statistics puts the median at $62,280 a year for insurance sales agents (May 2025), with the bottom 10% under $37,330 and the top 10% over $138,140. For independent, commission-only life agents the range is even wider, because pay comes down to issued premium × commission rate − chargebacks. Activity and skill move that number more than time on the job does.
What the official numbers say — and what they miss
The BLS figure counts every kind of insurance sales agent: salaried call-center reps, property-and-casualty agents at a local office, health and Medicare agents, and independent life agents. In May 2025 the median was $62,280; the lowest-paid 10% earned under $37,330 and the highest-paid 10% earned over $138,140.
BLS also notes that independent agents may be paid by commission only, while employees of an agency or carrier may get a salary, salary plus commission, or salary plus bonus. That’s the key: a commission-only agent doesn’t have a salary at all. Their income is the direct result of how much premium they place — and keep on the books.
| Pay model | How you’re paid | The trade-off |
|---|---|---|
| Salaried / call center | Hourly or salary, sometimes plus bonus | Steadier pay, lower ceiling, less control over your schedule |
| Captive career agent | Commission, sometimes a salary or training allowance at first | One company’s products; clients usually stay with the company if you leave |
| Independent, through an agency | Commission from many carriers, often with advances | No salary — the highest upside and the most variability |
The formula that actually decides your income
Example: a client buys a final expense policy at $85 a month. That’s $1,020 of annual premium. At a 100% illustration rate, that one policy is worth about $1,020 in first-year commission. Many carriers advance a portion — often 75% — when the policy issues, so about $765 arrives up front and the rest follows as the client keeps paying. More detail: how commissions, advances, and chargebacks work.
Everything else — leads, scripts, product knowledge, underwriting skill — exists to push three numbers: how much premium you write, how much of it issues and stays on the books, and the rate you’re paid on it.
What different incomes take, at a glance
| Monthly income goal | Issued AP needed at 80% | At 100% | At 120% | Policies a month* |
|---|---|---|---|---|
| $5,000 | $6,250 | $5,000 | $4,167 | ≈5 |
| $10,000 | $12,500 | $10,000 | $8,333 | ≈10 |
| $15,000 | $18,750 | $15,000 | $12,500 | ≈15 |
| $20,000 | $25,000 | $20,000 | $16,667 | ≈20 |
*Issued policies at the 100% illustration rate and an average of $1,000 of annual premium per policy. Rates shown are illustrations, not our contract schedule.
Run your own numbers
Income math calculator
Drag any slider. Everything recalculates.
Illustration only — not a promise, not a typical result, and not our contract schedule. Commission-only income depends on your activity, skill, persistency, and contracts. Chargebacks on early lapses reduce what you keep.
Why two agents at the same agency earn wildly different amounts
- Activity. Dials, contacts, and presentations per day. Nothing moves income more.
- Close rate. Two agents with the same leads can write very different numbers because of how they run the conversation.
- Average premium. Covering a spouse too, sizing coverage to the real need, and offering term or mortgage protection when it fits all raise premium per sale.
- Placement skill. Knowing which carrier takes which health history means more applications issue instead of getting declined.
- Persistency. Policies that stay on the books keep their commission; early lapses turn into chargebacks.
- Contract level. Your rate usually rises as your production grows.
What the first year usually looks like
Month one is mostly licensing, contracting, and training — plan on little or no commission. Months two and three are where most new agents write their first steady business while their skills catch up. By months four to six, people who kept their activity up usually know whether this is a career for them.
Costs and taxes to plan for
- Licensing: a pre-licensing course, the state exam, and a license application — paid to the course provider and your state.
- Errors & omissions (E&O) coverage, which many carriers require — often a few hundred dollars a year.
- Non-resident licenses if you sell in other states — state fees are often under $100 each, some higher.
- Tools: a phone line, a headset, and sometimes a dialer, depending on the agency.
- Taxes: as a 1099 contractor you pay your own income and self-employment taxes. Many agents set aside 25–30% of every commission — ask a tax professional what fits you.
Straight answers
Common questions
How much do life insurance agents make their first year?
It varies more than almost any job. Many first-year agents earn little while they get licensed and learn; consistent full-time agents often build to several thousand dollars a month within a few months; a smaller group earns six figures. The BLS median across all insurance sales agents was $62,280 in May 2025. Your activity, training, and leads decide where you land.
Are life insurance agents paid salary or commission?
Independent agents are usually paid commission only. Employees of a carrier, agency, or call center may get a salary, salary plus commission, or salary plus bonus, according to BLS. At United Eagles it’s 1099 commission with leads provided — no salary and no draw.
What percentage of the premium do life insurance agents get?
Agents are paid a percentage of the policy’s first-year premium, set by their contract level and the carrier. For final expense that commonly ranges from around 50% to more than 100% of first-year premium. Any agency you consider should show you your exact rates in writing.
Can life insurance agents make $100,000 a year?
Yes — BLS reports the top 10% of insurance sales agents earned more than $138,140 in May 2025. For a commission-only life agent, $100,000 a year is about $8,300 a month; at a 100% illustration rate that means roughly $8,300 of issued annual premium every month, plus a cushion for chargebacks. That’s steady full-time production, not a typical first-year result.
Is life insurance sales income guaranteed?
No. Commission-only means you earn when policies issue and stay in force. Anyone promising guaranteed income from commission sales is a red flag.
Keep reading
If it fits
Talk to a licensed producer — not a recruiter
Sixty seconds to apply, one honest phone call, and a clear path from licensed to producing. We’ll show you the contract in writing and tell you plainly if it’s not a fit.
- 1099 commission, uncapped — leads provided, no draw, income never guaranteed
- No fee to apply, train, or contract with us
- Dozens of A-rated carriers; remote-friendly