Are you thinking about becoming a life insurance agent? If so, there’s no better time than now. The market for life insurance is booming, and agents are raking in big salaries as a result. Still, it’s important to know that only certain types of agents earn the biggest paychecks—and even then it can take years to get there.
You’ll need perseverance and dedication on top of your natural sales skills if you want to become one of those elite earners.
The average annual life insurance agent salary is $59,000.
The average annual life insurance agent salary is $59,000.
The average salary for a life insurance agent by state:
- New York, NY: $84,000
- California, CA: $74,000
- Illinois, IL: $69,000
The highest paying industries for a life insurance agent are:
- Software as a Service (SaaS) and Other Application Software – Systems Applications and Products – $88,000 (Median salary is the midpoint; half of workers earn more than this amount.) * Consumer Product Goods R&D and Engineering & Research Services – $82,500 (Median salary is the midpoint; half of workers earn more than this amount.) * Printing & Publishing Industry – Printing & Related Support Activities – $78,500 (Median salary is the midpoint; half of workers earn more than this amount.) The largest companies that employ life insurance agents have an average size of 99 employees.
51 percent of life insurance agents make more than $50,000 per year.
While most agents make between $40,000 and $50,000 per year, the top earners in the industry earn over $100,000. For example, one agent who had been in business for 10 years reported earning a salary of $87,500 and another made $100,000 after two years as an agent.
It’s also worth noting that while many agents work full-time outside of their homes, others combine their career with other professions such as teaching or being a stay-at-home parent.
The median annual salary for a life insurance agent is about $40,500.
The median annual salary for a life insurance agent is about $40,500. In other words, 50% of agents earn more than this amount and 50% earn less. The typical salary can be different from the average (mean) because some very high earners may pull the average up due to their extreme salaries.
In addition to looking at median incomes, we can also look at how much agents earn relative to others in similar occupations. For example, compared with other postsecondary teachers and instructors, who make an average salary of $48,000 per year according to Payscale data from 2017, life insurance agents are generally paid less ($42k).
Most agents earn enough to have a comfortable life, and the top earners pull in over $100k per year.
The average life insurance agent salary varies widely, depending on a number of factors. Factors that can affect your income include:
- The type of life insurance agent you are (e.g., independent or employee)
- The type of insurance company you work for (e.g., large national or regional)
- The specific product you sell (term vs whole life, etc.)
- Where you work geographically (rural vs urban areas have different costs of living)
Conclusion
There’s no doubt that life insurance agents are in high demand. With more and more people purchasing life insurance for themselves and their families, it’s important that we have a strong workforce available to help them make informed decisions about their coverage. If you think this career path might be right for you, then start your journey by getting licensed with one of the leading providers of life insurance policies today!