How Much Does and Agent Make In Commissions?
I get asked often how I get paid by clients. I’m happy to explain this as I feel it builds a trusting relationship. I believe the biggest reason they ask this question is because they are not sure if they are supposed to pay me directly for my time.
Most insurance agents and financial representatives are commission based. This means that they only make money off of you when you buy something from them. Depending on the product, will depend on how much that agent makes. Also, the insurance company they are representing can determines how much commission they will pay that agent.
Here are some examples of what you can expect your agent to make off of the products
you are buying from him or her:
- Individual health insurance: 10% of premium paid
- Life Insurance Term: 50-85%
- Life Insurance Permanent: 35-65%
- Disability Income Insurance: 50-65%
- Dental Insurance: 10%
- Group Health & Dental: 10%
- Long Term Care Insurance: 50-65%
Some products like Medicare or accident and cancer policies vary so much or pay a flat fee that it’s hard to track them all. Just know that if you buy your policy directly from a carrier and skip the agent part, it will still cost you the same. The above commission percentages are based on our experience and does not reflect what agents make across the country, more so it gives you an idea of how much they could stand to make.