How much commission do insurance agents make?

Commission rates depend on the product sold. Auto and home policies typically pay 5% to 15% of the first-year premium and 2% to 5% on renewals; term life commonly pays roughly 30% to 80% of the first-year premium, while whole and universal life often pay around 100% or more of the first-year target premium. Renewal commissions on life products drop to a few percent. Commissions are the most common form of agent pay, and the median wage for insurance sales agents was $62,280 in May 2025.