What is the average salary for a life insurance agent?
A life insurance agent's salary can vary depending on where they live and what company they work for. On average, a life insurance agent makes about $64,857 per year but they could nearly double that amount in some cases. Life insurance agents can opt to work captively for larger insurance companies or as independent agents to sell a variety of life insurance policies from different companies.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
UPDATED: May 26, 2023
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UPDATED: May 26, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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How much is a life insurance agent’s salary?
As with most occupations, a life insurance agent’s salary can vary depending on factors such as the employer, work experience, licensure, and even where they live. Becoming an insurance agent can be a potentially lucrative career in some cases.
According to the Bureau of Labor Statistics, the average insurance sales agent makes $51,180 per year or roughly $25.08 per hour. This average would include all types of insurance and all experience levels, not solely life insurance sales.
A life insurance sales agent’s salary is largely dependent on a person’s commitment to the work, which is apparent when reviewing statistics that include the entire range of salaries for agents. The ranges aren’t entirely clear, but we’ve compiled sample statistics from multiple organizations below, along with an average for the mean, minimum, and maximum salary based on the selected data.
| Statistic | ZipRecruiter | Comparably | Zippia | SalaryExpert | Average |
|---|---|---|---|---|---|
| Average | $79,730 | $55,512 | $62,000 | $62,185 | $64,857 |
| Minimum | $20,000 | $18,394 | $41,000 | $36.628 | $29,005 |
| Maximum | $174,000 | $122,590 | $94,000 | $78,065 | $117,164 |
Using this data, the average across the United States is over $60,000. This is a decent salary considering you could potentially become a life insurance agent with nothing more than a high school diploma and your associated licensure. Below, you can see how salaries may vary depending on where you reside.
| State | Annual Salary | Monthly Pay | Hourly Wage |
|---|---|---|---|
| New York | $89,872 | $7,489 | $43.21 |
| New Hampshire | $87,121 | $7,260 | $41.89 |
| Vermont | $82,353 | $6,863 | $39.59 |
| Wyoming | $80,242 | $6,687 | $38.58 |
| Maine | $80,085 | $6,674 | $38.50 |
| Michigan | $64,491 | $5,374 | $31.01 |
| Illinois | $64,218 | $5,352 | $30.87 |
| Texas | $63,745 | $5,312 | $30.65 |
| Missouri | $63,096 | $5,258 | $30.33 |
| North Carolina | $58,753 | $4,896 | $28.25 |
The table above reveals that many Northeast or New England states are among the top of the list for income from a geological perspective. You can expect to earn more as a life insurance agent in these states, but the cost of living might also be higher.
The variance by state is significant regardless, considering a $30,000 annual salary difference between the highest-earning state (New York) and lowest-earning State (North Carolina).
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How do life insurance agents make money?
A licensed insurance agent’s salary can depend on a number of factors as mentioned above. What determines how much a life insurance agent makes? There are a handful of variables listed below:
- Where the agent lives
- Licensure
- Employment status (full-time or part-time)
- Captive vs. independent
- Employer
It’s obvious that the region you live in will play a role in how much you can earn as a life insurance agent. If there’s nobody nearby to sell to, you insurance commissions may be limited. In most cases, an insurance sales salary is largely dependent on volume.
Since volume, or the number of policies you sell, is an important component of a life insurance agent’s salary, obtaining additional licensure could be of benefit to you as an agent. This simply indicates that you may eventually want to obtain additional insurance sales credentials to sell different insurance policies, such as health or auto insurance.
Many companies, such as Allstate or State Farm, sell a myriad of insurance products that you could capitalize on with the right credentials. Allstate and State Farm, among many other major insurers, use captive insurance agents who usually work full-time.
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A captive insurance agent is only allowed to sell insurance products from their employer, whereas an independent agent can sell products from multiple insurance companies. Most name-brand insurance companies hire captive agents which ultimately indicates that independent agents can’t sell those products.
Independent agents tend to have more flexibility with pricing and policy options, but captive agents often get leads simply because they work for a company that advertises frequently. Overall, the company or style of insurance sales you select can play a major role in your income potential.
What are the best life insurance companies to work for?
There are many life insurance companies to choose from when searching for an employer. Each company will offer different benefits that may or may not be of interest to you. For example, some employers might pay better while others encourage a strong work-life balance.
Glassdoor offers some insight into the overall employee experience with insurance companies. According to this information, some of the top-rated life insurance companies for employees include:
- Primerica (4.0 stars)
- Globe Life (3.9 stars)
- Family First Life (4.5 stars)
- Allianz (4.3 stars)
- Kemper (4.0 stars)
- Mutual of Omaha (3.9 stars)
- Munich Re (4.3 stars)
You may notice that many larger companies aren’t listed above. The majority of bigger companies are rated significantly below 4.0 stars for a variety of reasons. Therefore, it’s always a good idea to read employee reviews before you commit to an employment contract.
Even with the list above, Globe Life and Mutual of Omaha are among the more popular life insurance providers and have the lowest employee ratings. It might be worthwhile to take a deeper look into why those ratings aren’t as high.
A Life Insurance Agent’s Salary: The Bottom Line
Becoming a life insurance agent could be a great option for anyone interested in joining the insurance sales force. Life insurance agents can earn a stable income with minimal initial education-associated debt. Your credentials and location play a significant role in how much you can earn as a life insurance agent.
We hope you enjoyed discovering more about a life insurance agent’s salary. Learn more about how much insurance agents make selling other insurance products.
Frequently Asked Questions
What is the average salary for a life insurance agent?
According to the Bureau of Labor Statistics, the median annual salary for insurance agents, including life insurance agents, was $52,180 as of May 2020. However, salaries can vary widely based on factors such as experience, geographic location, and commission structure.
How do life insurance agents earn their income?
Life insurance agents typically earn a commission on the policies they sell. The commission can vary depending on the insurance company and the type of policy being sold. In addition to commissions, some agents may receive bonuses or other incentives based on their sales performance.
What education or training is required to become a life insurance agent?
The specific requirements for becoming a life insurance agent vary by state. In some states, a high school diploma or equivalent is all that is required, while in others, a college degree or completion of a pre-licensing education course may be necessary. Most states also require passing a licensing exam.
What skills are important for success as a life insurance agent?
Successful life insurance agents typically have strong communication skills, both verbal and written. They are also skilled at networking and building relationships with potential clients. Additionally, agents should have knowledge of insurance products and the ability to explain them clearly to clients.
What is the job outlook for life insurance agents?
The job outlook for insurance agents, including life insurance agents, is projected to grow 5% from 2029 to 2030, according to the Bureau of Labor Statistics. The demand for insurance is expected to increase as the population ages and more people become aware of the importance of insurance coverage. However, advancements in technology may reduce the need for face-to-face interactions, which could impact job opportunities in the field.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.