Insurance agents typically earn their income through commissions on the policies they sell. The amount of the commission varies depending on the type of policy, the premium amount, and the agent's agreement with the insurance company. For life insurance policies, agents typically earn a higher commission in the first year, ranging from 40 to 100% of the first-year premium, followed by lower renewal rates in subsequent years. The commission structure may also vary depending on the insurance company and the agent's level of experience.
Several factors can affect an insurance agent's earnings, including their ability to sell policies, the type of policies they sell, and the size of their client base. Agents who are able to sell more policies or sell policies with higher premiums will generally earn higher commissions. Additionally, agents who have a strong network of clients and are able to retain their clients over time can earn higher renewal commissions. The location and industry in which an agent works can also impact their earnings, with some areas and industries offering higher commissions than others. Overall, an insurance agent's earnings can vary widely depending on their individual performance and the factors mentioned above.