Are you looking for information on insurance agent salaries in 2024?
Trying to get into the landscape of insurance but have more questions than answers? Let us make things easier for you. Find all the information about insurance agent salary in 2024 here to make well-informed career decisions. While relevant knowledge is always essential, only a handful of positions besides that of insurance agent offer newcomers the potential to earn a significant income. But just because the industry gives rookies a chance doesn’t mean it’s easy to succeed. Finding success in your insurance career and making good money comes with sacrifice. It’s a challenging job, and people who don’t give it their all tend to fail eventually.
Featured Agents
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HOWARD WILLIAMS
- Specializes in: Term Life, Mortgage, Universal Life, Burial and Funeral, Whole Life, Credit, Survivorship, Variable Life, Supplemental
- Location: NC 28203
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Bridget Watkins
- Specializes in: Term Life, Supplemental, Survivorship, Universal Life, Credit, Burial and Funeral, Whole Life, Variable Life, Mortgage
- Location: Aurora, AL 80013
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Morris Mackey
- Specializes in: Motorcycle & ATV, Credit, Survivorship, Renters, Term Life, Recreational Vehicles, Motorhome, Dwelling Fire, Mortgage, Yacht
- Location: Eureka-springs, AR 72632
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C m B
- Specializes in: Cyber & Privacy Liability, Aviation Package, Commercial Fire, Special Events, Surety Bond, Private Hangar, Homeowners, Mobile Homeowners, Public Official, Small Commercial Package
- Location: Berea, DE 44017
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Carl Schutze
- Specializes in: Term Life
- Location: West-palm-beach, CO 33409
How Do Insurance Agents Make Money?
In 2024, insurance agents can make on average $50,000 per year. Top-level agents can make up to $95,279 and entry-level positions start at $39,914. Generally, an insurance agent makes money via commissions. It’s the most common form of compensation for insurance agents. The commission amount depends on the type and quantity of insurance sold. Whether it’s a new policy or a renewal also plays a part in determining the commission.
A majority of agents sell home, auto, life, and health insurance. Insurance carriers provide agents with a percentage of the premium and renewals for selling home and auto insurance. Life and health insurance policies, on the other hand, yield a larger percentage of the sale when a client first signs up. Agents can also make money from renewals, but not as much as from new policies.
For instance, let’s say Chet the insurance agent sells a health insurance policy to a client named Jeremy. The policy covers the client for most health-related events. The insurance company Chet works for pays a 90%/5% commission on health insurance policies. This means that the agent selling the policy receives 90% of the first year’s premiums and 5% of future renewals.
The policy costs Jeremy $150 per month, which is $1,800 per year. So, in the first year, Clint makes a commission of $1,620 ($1,800 x 90%). And in the following years, provided Jeremy makes his payments, Clint will earn $90 in renewals ($1,800 x 5%).
How Much Do Insurance Agents Make?
According to the Bureau of Labor Statistics (BLS), an insurance agent can earn more than $100,000 in their first year. The median annual wage for insurance sales agents for 2023 was $57,860. The lowest 10% of earners in the industry made an annual $31,530, and the top earners earned more than $130,350 or $62.67 an hour.
One of the core reasons why insurance agents’ salaries differ is commissions. Simply put, the better you are at sales, the more you’ll make. But there are additional factors that play a role in determining an insurance agent’s income.
What Determines an Insurance Agent’s Salary?
The relevant factors include:
- Type of Insurance Agent
- Type of Insurance Policy
- Location
- Commission Structure
Qualifications: To become an insurance agent, you will require a high school diploma (Some employers might also require you to have a bachelor’s degree), a state-issued insurance license, product sales experience, business management skills, good communication skills, patience, and a positive attitude.
The vast majority of insurance companies do not have strict requirements for hiring an insurance agent. Many do not require previous experience in the insurance industry because most companies have internal training programs for new agents. These programs teach them about the products they are going to sell.
Final Words
Your income in insurance sales is all about your performance. The better you sell, the more you earn through commissions and bonuses. If you work hard, stay eager to learn, and put yourself out there, you can make good money as an insurance agent. The insurance industry is always growing and needs people like you. If you do your best, adapt to changes, and promote yourself well, you can shape your insurance agent salary the way you want.
