How Much Do Insurance Agents Make?

Insurance agents make their living by recommending and selling various types of insurance policies to individuals and businesses. Since different policies vary widely in terms of the amount of coverage they provide, insurance agents are often able to make a comfortable living.

Factors That Influence Insurance Agent Income

Income potential as an insurance agent depends on several factors. These include understanding of the insurance industry, experience, commission structure, and the type of policy sold.

    • Understanding of the Insurance Industry – An insurance agent must have a comprehensive understanding of the policies they are selling. They must be able to explain the policy to potential customers, as well as determine whether a policy meets the customer\’s needs.


    • Experience – Experience matters in this profession because more experienced agents are more familiar with how to find the right policy for a customer.


    • Commission Structure – Insurance agents typically receive an average of 10% commission from the sale of each policy. This commission can vary depending on the type and amount of coverage provided. The more coverage sold, the higher the commission.


    • Type of Policy Sold – The policy sold can also influence an agent\’s income potential. Life insurance policies tend to have higher commission rates than other types of insurance, so agents selling those policies may have a higher earning potential.


Average Insurance Agent Salaries

According to the U.S. Bureau of Labor Statistics, the median annual wage for insurance agents in 2021 was $49,840. This average includes salary, commissions, and bonuses.

In general, salaries are higher in larger cities due to a larger customer base and higher demand for insurance products. Salaries also tend to be higher when the agent sells higher-priced policies, such as life insurance, disability insurance, and auto policies.


Insurance agents can make a comfortable living selling various types of insurance policies. The income potential can vary greatly depending on various factors, such as experience, commission structure, and the type of policy sold. However, the U.S. Bureau of Labor Statistics lists the median annual income for insurance agents at $49,840 for 2021, which is significantly higher than the median income for all occupations.

Check the latest U.S. Bureau of Labor Statistics data on insurance agents\’ income here:



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