How much do life insurance agents make per policy?

Life agents earn a commission rather than a flat per-policy fee, so earnings depend on the premium and the commission rate. First-year commissions typically run 30% to 80% of the annual premium on term life and around 100% or more of the first-year premium on permanent policies. Renewal commissions drop sharply in later years, often to a few percent of the annual premium, and some carriers stop paying commissions after the third year of a policy.