How long does it take to make money in insurance sales? (2025)

How long does it take to make money in insurance sales?

Most businesses don't make any profit in their first year of operating. It could take anywhere from 18 to 24 months for your insurance sales to actually provide profit. Don't feel discouraged. Every small business owner has to clear this hurdle.

Is it hard to make money in insurance sales?

It is not easy to make a living in insurance, but it is not as hard as you might think. As with any type of sales, becoming an insurance agent can be one of the best paying hard jobs or a terrible paying easy job. Dedicated agents will become successful at insurance sales, just like at any other job.

Is insurance sales profitable?

A career selling insurance can be a good way to make money. It provides many opportunities to earn a high income with strong potential for growth. Because your income will mostly come from commissions, there can be no limit to how much you earn.

What is the success rate of insurance sales?

It is estimated that new insurance agents experience a 30% to 50% success rate, with this figure gradually dropping over time. The rate can vary depending on various factors, including the amount of training the agent receives, mentorship available, and the agent's overall outlook.

How do I succeed in selling insurance?

Strong customer service skills are essential for an insurance agent to succeed. Timely responses to inquiries, emails and phone calls are a must. Customers want their insurance agents to help them resolve issues quickly and easily. Having a strong work ethic works hand-in-hand with having good customer service skills.

How fast can I make money selling insurance?

In the first year, a life insurance agent can earn anywhere from 30% to 90% of this premium, along with 5% to 10% of premiums paid in later years.

What type of insurance sales makes the most money?

While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.

What is the easiest insurance to sell?

Term Life Insurance

The siren call for most newbie salespeople tends towards term life policies. They're simpler than universal or whole-life options but still carry potential for good earnings if sold effectively.

How stressful is insurance sales?

How stressful is being an insurance agent? Being an insurance agent can be quite stressful due to the high-pressure environment of sales jobs and the need to meet quotas. The uncertainty of income and the hard work required to build and maintain client relationships add to the stress levels.

Why do people who sell insurance make so much money?

Most professionals who sell insurance are paid largely on a commission basis. In fact, most agents aren't even employees of the carrier. More often than not, they're independent contractors who are compensated based on how much they sell, with higher commissions for certain types of products.

Why do most life insurance agents quit?

There's two big reasons why insurance agents quit: they don't feel valued, and they aren't given the technology they need to do their jobs well. In addition, managing commissions while hitting performance goals is a stressful part of the job for many insurance agents.

How many insurance agents fail in the first year?

In fact, many agents new to insurance are fearful, knowing they face a high risk of failure. How many agents quit selling insurance? There isn't an exact number. But we figure somewhere between 90% and 95% of agents quit in their first 12 months of receiving their license.

Can I become a millionaire selling insurance?

Some agents, advisors, and multi-line agents made a million dollars in the first year they worked with us selling life insurance! While most of the others it took 2, 3, or more years to make a million dollars per year selling life insurance.

Is it hard to make money selling insurance?

While selling insurance can be challenging, especially at the beginning, it's certainly not impossible. Over time, insurance sales agents earn much more as they begin to build a strong client base and develop their selling abilities.

How do insurance sales people make money?

For auto and home policies, captive insurance agents earn about 5% to 10% of the entire premiums paid for the first year, while independent agents receive about 15%. Commission rates for renewals range between 2% and 15%, averaging around 2% to 5%, regardless of the type of agent.

What skills do insurance agents need?

What is the easiest and most profitable insurance to sell?

Life insurance stands out as one of the most profitable types of insurance due to its steady demand, attractive commissions, high premiums, and long-term policy tenure.

Can you sell insurance as a side hustle?

By selling insurance part time, you can learn which carriers and products you prefer to sell and begin developing lasting relationships with clients. If you have friends or family members who need Medicare plans, helping them get coverage would be a great place to start.

What is passive income for insurance agents?

Residual income is also called passive or recurring income. These are commissions tied to premium payments. The insurance company receives a commission by the time of the sale, then the agent receives an additional payment every time the policy holder renews the policy.

What is the hardest type of insurance to sell?

What position in insurance makes the most money?

What is the most profitable sales job?

Is selling insurance a stressful job?

Commission-based work

For others, it can cause stress and worry about their future financial situation. New insurance agents often work long hours to build and strengthen relationships and get their names out in the industry. Even those who do qualify for a base salary may be held to a strict sales quota.

What insurance is most profitable to sell?

Life insurance is the most profitable—and the hardest—type of insurance to sell. With the highest premiums and the longest-running contract, it brings in cash over a long period of time. In the first year, agents make the largest annual sum on a policy, bringing in anywhere from 40–120% of the policy premium.

What is the highest paying insurance to sell?

Life Insurance If you're wondering what types of insurance are the most profitable, life insurance is a good pick. Life insurance offers some of the highest commissions in the business. Health insurance products offer around 7 - 22% in commissions. Auto insurance yields agents roughly 10% to 15% in commissions.