How much do insurance agents make?

Insurance agents earn a median of about $62,000 a year, but what any individual takes home depends heavily on how they’re paid. Captive agents who work for a single carrier usually draw a salary, while independent agents live on commission — they earn nothing until a policy sells. That difference is why pay spreads so far across the field, from under $37,000 at the low end to well past $138,000 at the top.

Experience, location, and what they sell can move an agent to the higher end. Agents who handle more complex products like life or commercial coverage tend to earn more, and so do those working in busy markets. Demand for insurance has stayed strong, especially in health and senior coverage, so the career outlook is healthy too.

How much do insurance agents make?

Insurance agents make a median of $62,280 per year, according to the U.S. Bureau of Labor Statistics. Most earn between $37,330 and $138,140 annually, depending on experience, specialty, and location. The average (mean) wage is higher, at $81,480, because top earners pull it above the midpoint.

Across all industries and experience levels, the BLS reports the following national wage estimates for insurance sales agents:

It’s worth noting that the average annual wage of $81,480 sits well above the $62,280 median. That gap reflects the pull of top earners — agents in high-paying specialties and markets — who lift the average above the midpoint figure that more typically describes the field.

These BLS estimates capture wages, salaries, commissions, and production bonuses, but they exclude self-employed agents and business owners, so the real earning ceiling for successful independent agents can run higher.

How do insurance agents make money?

Insurance agents help people buy insurance policies. Many specialize in a single product line — life, health, or home insurance, for example — while others sell several types of coverage.

Agents fall into two broad camps. Captive agents can sell policies from only one insurer, while independent agents can place business with multiple carriers. Independent agents earn through commission alone, making money only when they close a sale. Agents employed directly by an insurer or an agency may instead receive a salary, commission, or a combination of both.

What is a captive agent?

A captive agent works exclusively with one insurer or agency. These agents frequently earn a base salary on top of the commissions they generate, and they benefit from the brand recognition that comes with representing a well-known company.

How much do captive agents make?

Captive agents can be compensated in several ways. Many receive a salary from the company they work for, but they may also earn commissions, and some carriers and agencies layer on a bonus for hitting specific targets.

The commission structure can pay out more than once: first when the policy is sold, and again each time it renews. (In the case of life insurance, a payout can also come when a term policy converts to a permanent or whole life policy.)

Keep in mind that the BLS wage figures don’t include commission earnings. That matters for captive agents, who typically earn lower commissions than their independent counterparts — when they earn commissions at all.

Typical captive-agent commission rates run 5% to 10% of the first year’s premium for home and auto insurance. For life insurance, first-year commission rates climb much higher — between 40% and 100% of the premium, depending on the policy type.

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What is an independent agent?

An independent agent is licensed to sell policies without being tied to a single carrier.

“I work for the client, not the company. I can shop around from dozens of insurance providers to find the best deal and the right fit,” says Alex Schlesinger, founder and CEO of Active Mutual and an independent agent.

A single independent agent may offer home, auto, and life coverage all at once, comparing premiums across several companies to land on the policy that fits a client best.

“If one company turns you down or charges too much, I’ve got five others ready to go,” Schlesinger says. “That flexibility can be the difference between someone getting covered or going unprotected.”

How do independent insurance agents get paid?

Independent agents work on commission. When they sell a policy, the carrier behind it pays them a percentage of the premiums.

Commissions are calculated on either the first-year premium or the annual premium when a policy renews. That distinction matters: policies that aren’t typically renewed, such as life insurance, can pay out more than 100% of the first-year premium in commission.

Term life commissions generally fall between 30% and 70% of the first year’s premiums, while whole life insurance — designed to last a policyholder’s lifetime — can pay as much as 120%. The difference comes down to pricing and duration: term life carries lower premiums and covers only a set period.

How much do insurance agents make on renewals?

Agents who earn a commission on a policy’s first year often keep earning whenever that policy renews, though usually at a reduced rate.

For property and casualty insurance — home and auto — renewal commissions typically land around 2% to 5%.

Life insurance doesn’t renew in the usual sense, but term policies can sometimes convert to whole life when the term ends. On those, an agent generally earns about 50% to 90% on the first year of premiums, followed by 2% to 5% for each subsequent year the policy stays in force.

How much do insurance brokers make?

An insurance broker works on behalf of the customer, helping them find and select policies that fit their needs. Brokers can’t issue a policy themselves, so they still work through an agent or carrier to put coverage in place. In the BLS data, brokers aren’t tracked as a separate occupation — they’re counted within insurance sales agents, so the same wage range applies.

Like agents, brokers are paid on commission and can earn on both first-year premiums and renewals. The percentage varies by line of insurance and by each carrier’s rules, with life insurance generally paying more than home and auto.

What are typical insurance agent commission rates?

How much an agent earns depends on the type of policy, the company, and how the commission is structured. Captive agents often combine a salary with commission, while independent agents typically work on commission alone.

On average:

• Captive home and auto agents typically earn 5% to 10% commission on the first year’s premium
• Independent agents generally earn more, averaging around 15% on new home and auto policies
• Life insurance agents earn most of their income up front. Term life usually pays 30% to 70% of the first-year premium, while whole life can pay up to 120%
• Renewal commissions for property and casualty insurance generally run 2% to 5%, and life insurance commissions after the first year typically fall in the same 2% to 5% range

Where insurance agents work

Insurance sales agents held about 479,100 jobs nationwide, according to the latest BLS figures. The overwhelming majority work within insurance agencies and brokerages.

Industries employing the most insurance sales agents:

Geographically, employment clusters in the largest and most populous states.

States with the most insurance sales agents:

Metro areas with the most insurance sales agents:

How to become an insurance agent

Get your degree

Most agents start with a high school diploma, but a college degree can make you more competitive. New hires often receive on-the-job training, frequently by shadowing experienced agents, which helps them learn products, sales techniques, and client interaction.

Get licensed

Every agent must be licensed in the states where they sell, which means completing state-sponsored courses and passing an exam. Agents also need a license for each specific type of insurance they want to sell.

Keeping a license current may require periodic refresher courses, and the rules for renewal vary by state, so check with your state’s department of insurance.

Agents who also want to sell financial products must pass additional exams from the Financial Industry Regulatory Authority (FINRA), such as the Series 6 for mutual funds and annuities or the Series 7 for broader securities sales.

Get employed

Once you’re licensed, the next step is finding a job. Most independent agents still work through an agency, so locating one is the move if you want to be independent. If you’d rather work for a carrier, start applying to the companies that interest you.

It’s also possible to join an agency or carrier before getting licensed — in some cases the business will pay for your licensing, though you may need to start in an entry-level role and work your way up.

Build your client base

Clients who trust you come back when they need more coverage, which means more sales and relationships that can last a lifetime.

“I stay in touch with my clients over the years, checking in to answer questions or update their coverage if their life changes, like with a new baby or a marriage,” Schlesinger says. 

“Ultimately, my goal is to build long-term relationships. It’s a job where many of my clients end up like friends or family, and that’s a responsibility I take very seriously.”

Is a career as an insurance agent worth it?

Whether a career as an insurance agent is worth it depends on your finances and where you live. The $62,280 median is well above the roughly $50,980 median for all U.S. occupations (BLS, May 2025), but how far it goes depends on your cost of living, expenses, and tolerance for commission-based income that varies month to month.

A national median only tells you so much. That same salary supports a comfortable life in a lower-cost state but feels tight in an expensive metro like New York or Los Angeles. Your own budget — housing, family size, and debt — matters just as much as the number itself.

The commission model is the other key factor. Independent agents earn only when they sell, so income can swing from strong months to slow ones. New agents often spend a year or two building a client base before earnings catch up, which makes a financial cushion important early on.

For people who can manage that variability, there is high earning potential, a flexible schedule, and lasting client relationships.