How much commission do life insurance agents earn?

First-year commissions typically run 30% to 80% of the annual premium on term life and around 100% or more on permanent and whole life policies. Renewal commissions are much smaller, usually 1% to 10% of the annual premium, and some carriers stop paying renewals after the third year. Life insurers paid $63 billion in commissions in 2024, about 5% of their total operating expenses, according to the 2025 ACLI Fact Book.