If you’re considering becoming an insurance agent, you might have heard that it’s a financially rewarding field. But you may be wondering how do insurance agents make money, how much they make or how they get paid.
At Farm Bureau, the harder you work, the more you can make. Here’s a rundown of the main ways insurance agents are compensated.
Do Insurance Agents Get Commission?
As an insurance agent, you’ll earn commissions on the policies and products you sell, including property-casualty, life insurance and financial services. Commissions are usually a percentage of the premium that a client/member pays. Farm Bureau offers additional commission opportunities to new agents to help them get a strong start.
As your customers renew their policies year after year, you’ll also earn residuals, which are smaller, ongoing payments. So, as your business grows, you can expect your income to increase as well.
What Are Some Other Income Streams for Agents?
Along with insurance agent commissions and residuals, you can earn cash awards from sales campaigns and bonuses for reaching sales goals. You may also be eligible to earn points in Farm Bureau’s Recognition Catalog by qualifying in several different categories and programs. Points can be redeemed as donations to your charity of choice, contributions to your children’s 529 College Plan, purchasing items of your choice or planning a travel experience.
You might also qualify for other incentives. For example, by meeting specific sales goals, you may be eligible for travel incentives. You could have the opportunity to explore places like England, Ireland, Alaska and Hawaii with other top agents and company leaders.
There is also for potential for you to earn additional bonuses if you’re a veteran or you have a background in agriculture. You may also earn a bonus by referring other people who become agents.
How Much Can I Make as an Insurance Agent?
As an insurance agent, you’re in control of your financial future. The more you grow your business, the more you can expect to earn.
Of course, there are no guarantees, but here are a few stats that can give you an idea of your earning potential:
- On average, a first-year Farm Bureau agent makes 49% more than agents with other companies.
- In 2022, the top 50% of agents earned at least $156,545, and their average income was $438,880.
- The top 25% of agents earned at least $318,737, and their average income was $648,916.
- The top 10% of agents earned at least $578,639, and their average income was $984,197.
What Else Plays Into Compensation?
As an insurance agent, you’re a small business owner. Farm Bureau supports you with a Commission Growth Fund and match to help you save for the future.
Through the Agents Association, you can enroll in benefits such as:
- Medical insurance and telehealth care
- Virtual primary care
- Vision and dental insurance
- Accident insurance
- Life/accidental death
- Long-term care
- Short-term and long-term disability
- Critical illness/cancer
- ID theft protection
Of course, there’s more to a future as an insurance agent than compensation. As your own boss, you can grow your business the way you want to and create the team and processes that work best for you. Additionally, you are in control of your schedule. Agents coach youth sports teams, volunteer with local organizations they care about and balance work and life, so they focus on what matters.
Ready to Take the Next Step Toward Your Financial Future?
At Farm Bureau, we stand behind our insurance agents. When you join our team, you get the tools, training and support you need to thrive. Find out more about what a future in insurance sales could be like.