Do insurance agents make a base salary?

Question

Zippia Team · Accepted Answer

No, insurance agents do not make a base salary. The vast majority of life insurance sales jobs are straight commission, which means no base salary. That's not to say that insurance agents do not make decent money.

The average life insurance agent, for example, earns around $79,730 a year. This figure is impressive when you consider that it is all commission-based. For this reason, more than 90% of new agents quit the business within the first year. However, for those who succeed, there is money to be made.

A life insurance agent, for instance, usually makes 40% to 90% of the first year premium as a commission. A term life policy lasts for a specific time, such as five, ten, or 20 years. Top-ranking producers may get 100% of the total premium in the first year as commission, and often 2% to 5% commission from the second to the fourth year.

Overall, the amount of commission paid will vary based on the agent's agreement with the insurance company or their employer (if they are salaried workers).