How much do insurance agents make?

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Insurance agents can have a rewarding career, and more so, since nowadays individuals have recognized the need for having insurance protection. However, it's difficult to predict the exact earnings of an insurance agent. That is because, an agent's earnings depend on his client base and how much insurance coverage he can sell. Thus, the more you put your effort as an agent, the more policies you'll sell and the more will be your income.

To know how an insurance agent earns, you must be aware of their mode of work. Based on how they work, insurance agents are broadly classified into two types:

  1. Captive agents - Those who represent a particular insurance company.
  2. Independent agents - Those who sell insurance products from various insurance companies.
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How much do the Captive agents earn?

Captive agents are employees of an insurance company and usually have fixed wages. The initial few months would be the training and learning phase for such an agent. Thereafter, the insurers usually set a target for each agent which has to be fulfilled within a pre-determined time period. According to his or her performance, his or her salary gets revised. There might even be a scope of earning performance bonuses, after the agent meet the target. The salary structure usually depends on a number of factors like the location, the company etc.

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How much do the Independent agents earn?

The independent agents represent multiple companies. They don't get a fixed remuneration from the insurance companies. They usually receive a percentage commission from the insurer, which depends on the amount of insurance they sell. Moreover, revenue is only generated on sale of new policies. Thus, to earn more, the agents need to sell more insurance policies.

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What is the range of income?

The average income of an insurance agent is around $62,970 for a year, as the May 2011 reports of the Bureau of Labor Statistics have pointed out. However, since the individual income is generally based on the commissions earned, skilled agents having a large number of clients can earn much more than the BLS mean. The yearly income of around 50 percent of the agents ranges from $33,850 to $72,490, with the experienced ones earning as high as $115,300 on an average per year or even more than that.

Employment Annual mean wage Annual median wage
$3,21,780 $62,970 $47,450

Area Names Employment Annual mean wage Annual median wage
Arizona $6,390 $51,980 $40,750
California $23,890 $75,140 $59,240
Florida $26,940 $59,420 $46,530
Kansas $4,070 $56,010 $45,130
Nevada $2,250 $51,580 $35,640
New York $18,580 $74,890 $57,180
Texas $26,490 $57,820 $40,630
Washington $5,830 $54,710 $46,770
source

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How much can be the agent commission?

The independent agents working for the insurance companies usually earn from the commissions after each policy sale. The agent compensation is usually paid only for the initial year of a new policy. The agents selling homeowner's insurance and auto insurance receive around 10 to 15 percent commission on the first year's policy premiums. The allowed compensation depends on the insurers though, and can be as low as 8 percent or as high as 15 percent. Life insurance agents earn a lot more, typically in the first year only. They usually receive most of the premium that the policy holder pays in the first year, or even all of it at times.

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Is there a scope for earning more?

Apart from the standard commissions which solely depend on each individual agent's performance, the insurance agents have the scope of earning more if the client renews the coverage. The renewals commissions typically range between 2 to 5 percent for each policy.

Along with that, any insurance companies also offer year-end bonuses and non-cash rewards like trips and prizes for the insurance agents.

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PostPosted: Thu Feb 16, 2012 11:35 pm   Post subject: How manys years of schooling is required?  

How many years of college is required to be an insurance agent? What classes are required?


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Wenzell
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PostPosted: Wed Feb 29, 2012 12:04 pm   Post subject: oHhrQClvcjXw  

A lot. More today than a year ago.Because of Obamacare, no cnpmaoy in America offers stand alone children's health insurance.Why? Obamacare dictates that it is guaranteed issue, without rate ups, regardless of health. Therefore, there is no reason to purchase it until there is a claim needing to be paid.That's not health insurance. That's a confiscatory tax on health insurance companies. Fortunately, they aren't slaves yet, so they exercised the F U clause in the contract with the purple bellies from Washington and just refused to do business where they are guaranteed to lose money.How do you fix the problem of un- and under-insured? By making health insurance affordable.How do you make it affordable? By removing ALL government mandates, loser pays tort reform, encouraging competition between providers (enforce existing anti-trust laws), eliminate the AMA monopoly on billing codes, and eliminate the connection between employment and health insurance.Do these things and we'll see health insurance cost less than auto insurance. More people will be covered, more people will be healthy.


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PostPosted: Mon Apr 16, 2012 12:49 am   Post subject: THANK YOU  

That is what i needed to read. Smile


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PostPosted: Mon Apr 23, 2012 4:26 am   Post subject: Nike Set free Dame  

Thank you for sharing

I really like


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PostPosted: Fri Apr 27, 2012 9:01 pm   Post subject: Is this Insurance Producer Offer Decent?  

I have extensive B2B sales experience, but have been offered a position for an insurance company that is it's own brokerage and represents about 10 different lines. They made me an offer of a base of $55,000 for the first year and will pay for the training and my licensing. This company focuses on commercial property and casualty for businesses that pay a minimum premium of $50,000 per year. The commission structure they are offering is 40% for new contracts and 25% for renewals. The base salary is reduced by 1/3, the following year (in the thought that the commission will make up for it) and another 1/3 in year 3 so that it is fully commission based. My question is, does this seem like a good opportunity to make a very good income with a lot of hard work and tenacity? I will be completely new to the industry and appreciate any and all guidance. Thanks so much.

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PostPosted: Thu May 17, 2012 9:11 am   Post subject: Exquisite  

Have you ever considered writing an e-book or guest authoring on other blogs? I have a blog based on the same ideas you discuss and would really like to have you share some stories/information. I know my viewers would appreciate your work. If you are even remotely interested, feel free to shoot me an e-mail.


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PostPosted: Thu May 24, 2012 7:32 am   Post subject: 6537582081  

With havin so much content and articles do you ever run into any issues of plagorism or copyright violation? My blog has a lot of unique content I've either written myself or outsourced but it appears a lot of it is popping it up all over the web without my permission. Do you know any solutions to help prevent content from being stolen? I'd really appreciate it.


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PostPosted: Fri May 25, 2012 10:02 am   Post subject: 5580112977  

Hi are using Wordpress for your blog platform? I'm new to the blog world but I'm trying to get started and create my own. Do you require any coding expertise to make your own blog? Any help would be really appreciated!


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PostPosted: Fri May 25, 2012 6:44 pm   Post subject:   

Can we start from moonlighting as an insurance agent? Have a full time job, but wanted to explore other opportunities. How can we start?

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PostPosted: Sat May 26, 2012 3:25 am   Post subject: 7784688406  

Hi there! Do you know if they make any plugins to protect against hackers? I'm kinda paranoid about losing everything I've worked hard on. Any suggestions?


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PostPosted: Thu Feb 21, 2013 3:25 pm   Post subject: The article above  

The person that wrote the article above has zero idea of how the insurance business works. It's unfortunate when someone scribbles out a bunch of nonsense on a topic and then publishes it to the internet trying to pass as an expert. First she says that agents only receive commission for the first year of a home or auto policy and then she says they can receive 2%-5%. Wrong and wrong. She goes on to state the commissions can be as low as 8% (unlikely unless you're buying a workers comp policy. Most nonstandard commission is at least 10%) and as high as 15% (Preferred home policies are usually just under 20% commission). Many companies will offer trips for production (the trip will cost a very small percentage of the total written premium) and yearly bonuses (which are hard to qualify for and are based on your loss ration).



99% of what is written in Sil's article makes no sense and please do not use it as reference.


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PostPosted: Fri Mar 08, 2013 11:28 am   Post subject:   

You see (and hear) the agent salary question pop up at lot. The bottom line is that is just like most small business and sales models. Meager beginnings with lots of upside.



There is a high churn rate with new agents just because not everyone is cut out to be in sales. With a good work ethic and honing your sales and marketing chops you can build a strong book of business and make a very good living.



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PostPosted: Sun Mar 31, 2013 6:10 am   Post subject: What to do  

Insurance company telling people I still work for them. That's a lie, they were taking money in my name police got my money back, my account was over draft.


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PostPosted: Sat Jan 04, 2014 9:01 pm   Post subject:   

They do make lot of money earlier but nowdays there is so much restriction as company does not have anything hidden from the client as there is lot of competition these days so agent are now earning much less than they earned a decade ago

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PostPosted: Tue Jan 07, 2014 2:13 pm   Post subject:   

I cannot tell about others but auto insurance agents make good given the fact that having a policy is mandatory for car owners. So may or may not someone get a life insurance. But someone who has a car, would definitely need an insurance...

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