How much commission does an insurance agent make?

Commission rates vary widely by product. Auto and home policies typically pay 5% to 15% of the first-year premium, dropping to 2% to 5% on renewals. Life insurance pays more upfront: term life commonly pays roughly 30% to 80% of the first-year premium and permanent policies around 100% or more, while renewal commissions fall to roughly 1% to 10% of the annual premium. Agents may also earn production bonuses and profit-sharing on top of commissions.