Are insurance agents commissions too high?
On One Hand: Agents Earn Up Front And Renewal CommissionsInsurance agents earn commissions based on the product they sale. A life insurance agent can expect to receive 30 percent to 50 percent of the first year premium on a term policy with only about 4 percent of the premium for annual renewals. For a whole life policy, agents can expect to earn around 90 percent to 95 percent for the first year, and 6 percent on annual renewals. Health insurance agents earn less with 20 percent of the first-year policy and only 5 percent on annual renewals.On the Other: Long Hours And Travel ExpensesMany insurance agents work long hours, which may not compensate with the money they earn. Most work is done outside of the office, which means added travel expenses. Some business is handled over dinner or lunch with clients and when they return home, there is often paperwork to finish.Bottom LineThe average income for an insurance agent was around $45,000, According to the Bureau of Labor Statistics, in