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What is the average life insurance commission?


I know the amount can very significantly but I am just want to know what the average commission is. I've heard anywhere from $600 to $1000. But not if one is Term or whole life.

First year, about 95% of the annual premium, continuing, about 5%.

But, there's no average PREMIUM. So your question isn't answerable in dollars. You could sell a term policy for $100 a year, or you could sell a whole life policy for $5,000 a year, or anywhere in between.

there is no way to answer that....it varies by state and company. some companies actually pay more than 100% of the 1st year premium and then nothing else (i've seen up to 120%.) in places like NY the commission is 50-75% and then 1-3% per year.

It varies by company and product.

For term insurance, say 30-100% of first year premium. Some companies pay 1-5% more at renewal. Some will pay bonus money if you make production threasholds.

For 'permanent' policies the commision percentages are similar but the premiums are bigger (hence bigger commisions (this is why insurance salesman push them so hard)). With 'variable' products, you also get 'trailers' or a percentage of the money held in the investment accounts.

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