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:
- Captive agents - Those who represent a particular insurance company.
- Independent agents - Those who sell insurance products from various insurance companies.
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.
TopHow 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.
TopWhat 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 |
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.
TopIs 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.
TopReading discussions & reading
- Qualifications you need to be an insurance agent
- How to become an insurance agent
- Can you make millions as an agent?
- What are the commission opportunities of an agent?
- What makes insurance agents click in the industry?
Posted: Wed Jan 07, 2009 10:27 am Post Subject:
Sorry folks, but I've been in this business far too long and heard the dreamings of far too many NEW agents - and that post is almost exactly what they all sound like.
Yes,... but,... you have to admit,... $265,000 in commission,... 6 months into the business,... does sound good!
Posted: Thu Feb 26, 2009 04:24 pm Post Subject:
Posted: Thu Mar 12, 2009 10:59 pm Post Subject:
I made about 80,000 my first year selling life insurance and annuities, but I didn't start from scratch. I had my securities licenses and worked with a major bank (decent client base).
Posted: Fri Mar 13, 2009 05:36 pm Post Subject:
I made about 78,000 in my first year.
Posted: Sat Mar 14, 2009 03:52 am Post Subject:
Hey Glenda, why not become a part of this community? You can surely add a lot to it. :)
~Jeremy
Posted: Fri Mar 27, 2009 06:27 pm Post Subject: Making extra to supplement your income
If you are a licensed life and health insurance agent in your home state who would like the freedom to work from home selling life insurance products over the phone please contact me. It's a great way to make extra money during these tough times. You have complete control of your schedule. As a licensed agent providing services to clients, you'll receive inbound calls at your home from potential customers wanting to learn more about the products they have seen through various mediums, including mailers, TV spots, and sweepstakes. There is NO cold calling.
You will get a great per talk minute rate and sales incentives. Plus other perks like having your non-resident licenses paid for.
If you are really interested and your health/life state license is in good standing please contact me ASAP so I can get the process started for you.
I have been doing this work for over 2 years and was recently asked by the company to get new recruits because they are expanding.
Please email me with any questions:
theinsurancerecruiter AT gmail DOT com
We are not currently recruiting in the following states:
Texas, Massachusetts, New York, New Hampshire,
Connecticut, California, Oregon, Washington.
Posted: Sun Mar 29, 2009 04:02 pm Post Subject:
A great way to make 'extra' money? Does that mean you are looking for the part-timers? That's about all we need in the industry now...more part-timers who don't take this as a serious career.
Posted: Sat Apr 11, 2009 02:14 am Post Subject:
Todd King is a joke. He calls himself an IMO. Works out of his house I bet. Ask him what kind of training he gives to agents. He don't even have a website. I think it is very sad for any IMO to recruit from forums. Is this how IMO's make their living? I bet some of them put ads on craigslist too. What a joke. I'm going to become an IMO soon, and work out of my house.
Posted: Sat Apr 11, 2009 03:20 am Post Subject:
Spencer,
I don't know who you are. You obviously know my name, but that must be all you know about me. You want to visit my website? www[dot]ngfgllc[dot]com
I never claimed to give training to agents. I actually hire very few untrained agents. My contracts are not for those agents.
Is it really that sad that I give agents an opportunity that they don't get somewhere else?
What I do is help people. You, my stealth friend may be alien to that concept but I'm not.
Why don't you come from behind the shadows and let me know who you are. But then again, if you did that, I'll be willing to bet I could probably share a story of why you are out to defame me for no good reason. Did I say something to hurt your feelings on another forum or something?
You should be careful with your accusations out of ignorance else they may come back to bite you. There are a few people on this forum who know me very well and know what I do for people to help them.
What do you do for people my friend? Not very much I suspect!
You want to hide in the shadows and call me a joke? If you think you have the "truth" about something, come on out and present it like a real man!
Otherwise, stay in the shadows and make your little childish accusations and continue to act in childish ways.
If in fact I have wronged you in any way, please let me know, I'll do what I can to set it right...I never deliberately try to hurt someone, but I will go out of my way to make a thing right.
Website link deactivated as per the forum rules
Posted: Sat Apr 11, 2009 11:04 am Post Subject:
Hi Ohio,
I happen to be all of the above...with the exception of having a complete understanding of the internet. Therefore I am not making a million bucks per year.
So, you're highlighting the impact of internet technology within the insurance industry! Are you pointing at a larger database being covered online? Or is it that you're stressing upon a wider and more flexible agent network online? I'd be glad to listen to you.
Steven
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