Insurance Sales Salary: How Much Can You Earn and What Influences Your Paycheck

Working in insurance sales can be quite lucrative, depending on various factors such as your experience, location, type of insurance, and company you work for. If you are considering a career in insurance sales, you might be wondering how much you can expect to earn and what influences your paycheck. In this article, we will cover everything you need to know about insurance sales salary and how to maximize your earning potential.

What Is Insurance Sales and What Do Insurance Salespeople Do?

Insurance sales is the process of selling insurance policies to individuals or businesses. Insurance salespeople, also called agents or brokers, work for insurance companies or brokerage firms and aim to match customers’ insurance needs with the right policy. They typically help customers understand the benefits, costs, and terms of various insurance options and provide advice on how to protect their assets and manage risks.

Insurance salespeople may specialize in different types of insurance, such as life, health, auto, home, or commercial insurance. They may work independently or as part of a team, and they often have to prospect new clients, build relationships with existing customers, and handle administrative tasks such as filling out forms and processing claims.

How Much Do Insurance Salespeople Make?

The amount of money an insurance salesperson can make varies widely depending on many factors such as:

The number of years you have worked in insurance sales and your track record of success.
The state, city, or region where you work, which can affect the demand for insurance and the cost of living.
Type of Insurance
The type of insurance you sell, which can determine your commission rate and the competition in the market.
The size, reputation, and culture of the insurance company or brokerage firm you work for, which can affect your earning potential and benefits.

According to the U.S. Bureau of Labor Statistics, the median annual wage for insurance sales agents was $52,180 as of May 2020. The lowest 10 percent earned less than $28,500, while the highest 10 percent earned more than $128,070. Keep in mind that these figures may vary depending on the factors mentioned above and your individual performance.

How Is Insurance Sales Salary Calculated?

Insurance salespeople typically earn their income through commissions, which are a percentage of the premium paid by the customer for the insurance policy. The commission rate may vary depending on the type of insurance, the insurance company, and the volume of sales. Some insurance agents may also receive bonuses or incentives for meeting or exceeding certain sales targets or customer satisfaction metrics.

For example, a life insurance salesperson may earn a commission of 50% of the first year’s premium for a policy with a face value of $100,000, which amounts to $2,500. If the salesperson sells ten policies in a month, their total commission would be $25,000. However, keep in mind that commissions are typically not paid upfront but spread out over the length of the policy, which can affect the cash flow and income stability of insurance salespeople.

What Are the Pros and Cons of Working in Insurance Sales?


Working in insurance sales can offer many benefits, such as:

  • Potential for high income if you are successful in sales and have a steady stream of clients.
  • Flexibility in your work schedule and location, as insurance sales can be done from home or on the road.
  • Opportunity to help people protect their assets and achieve financial security, which can be rewarding and fulfilling.
  • Training and development opportunities to improve your sales skills, knowledge of insurance products, and customer service.
  • Ability to build long-term relationships with clients and generate referrals, which can lead to repeat business and growth.


However, working in insurance sales also has some downsides, such as:

  • High competition from other insurance salespeople and online insurance providers, which can make it harder to find and retain clients.
  • Volatile income and cash flow, as commissions may fluctuate depending on market conditions, customer demand, and policy cancellations.
  • Demanding workload and pressure to meet sales quotas or targets, which can be stressful and affect work-life balance.
  • Need for ongoing learning and compliance with regulations and industry standards, which can require time and effort.
  • Potential for ethical dilemmas and conflicts of interest when recommending insurance products or handling claims.

How Can You Maximize Your Insurance Sales Salary?

If you want to earn a high salary in insurance sales, consider taking the following steps:

  • Focus on your sales skills, such as prospecting, qualifying, presenting, closing, and following up with clients.
  • Understand your customers’ needs and preferences and offer personalized solutions that fit their budgets and lifestyles.
  • Stay up-to-date with the latest insurance products, trends, and regulations and communicate them effectively to your clients.
  • Build a solid network of referral sources, such as friends, family, business owners, or other professionals who can recommend your services to others.
  • Use technology and automation tools, such as customer relationship management (CRM) software, social media, and email marketing, to streamline your sales process and reach more prospects.
  • Join professional associations or networks, such as the National Association of Insurance and Financial Advisors (NAIFA) or the Million Dollar Round Table (MDRT), to learn from top performers and access resources and events.
  • Be ethical, transparent, and honest in your dealings with clients and comply with all legal and ethical standards.


1. Is insurance sales a good career?

Insurance sales can be a good career if you enjoy helping people, have strong communication and sales skills, and are willing to invest time and effort in learning and growing your business. However, it also requires resilience, patience, and adaptability to handle the challenges and uncertainties of the profession.

2. How much do entry-level insurance sales agents make?

The salary of entry-level insurance sales agents can vary depending on their location, experience, and employer. According to Glassdoor, the national average salary for an entry-level insurance sales agent is $37,000 per year. However, this figure may be higher or lower depending on the commission rate and the volume of sales.

3. How can I become an insurance sales agent?

To become an insurance sales agent, you typically need a high school diploma or equivalent, a state license, and on-the-job training. Some employers may prefer candidates with a bachelor’s degree in business, finance, or a related field, and prior sales or customer service experience. You may also need to pass a background check and a state licensing exam, which may test your knowledge of insurance regulations and products. Once you are licensed, you can start building your client base and earning commissions.

4. Can insurance salespeople work from home?

Yes, many insurance salespeople work from home or remotely, especially in the wake of the COVID-19 pandemic. Working from home can offer more flexibility, autonomy, and cost savings, although it also requires self-discipline, time management, and a reliable internet connection. Some insurance companies may provide their sales agents with virtual tools and resources to help them work remotely and stay connected with clients.

5. What is the difference between an insurance agent and a broker?

An insurance agent represents one or more insurance companies and sells their policies directly to clients. An insurance broker, on the other hand, works independently and represents multiple insurance companies, offering clients a wider range of options and unbiased advice. Both agents and brokers can earn commissions or fees for their services, depending on the type of insurance and the arrangement with the client.

In conclusion, insurance sales can offer a rewarding and dynamic career with high earning potential, but it also requires dedication, persistence, and continuous learning. By understanding the factors that influence insurance sales salary and following best practices for sales success, you can build a thriving business and help clients protect what matters most to them.