Can Selling Life Insurance Be A Lucrative Career?

  • John A. Osborne
  • May 01, 2023
Small Business Insurance Nevada

Life insurance is one of the most important products that everyone needs at some point in their life. It provides financial security to the beneficiaries when the policyholder passes away. While buying life insurance is essential, selling it can be a lucrative career option for those who have the right skills and mindset. Many people wonder if they can make 200k a year selling life insurance. The answer is yes, but it requires hard work, determination, and excellent sales skills.

Nowadays, people are more aware of the importance of life insurance, and they are willing to pay a premium for it. This has created an opportunity for sales professionals to make a substantial income by selling life insurance policies. The earning potential in this industry is enormous, and it’s not uncommon for successful agents to earn six-figure incomes. However, it’s important to note that not everyone who enters this field can achieve such success.

What Skills are Required to Make 200k a Year Selling Life Insurance?

To make 200k a year selling life insurance, you need to have a particular set of skills. Here are some of the essential skills required to succeed in this field:

  • Sales Skills: Selling life insurance is all about persuading people to buy a policy. Therefore, you need to have excellent sales skills, including the ability to communicate effectively, build rapport, and close deals.
  • Networking: Networking is crucial in this industry. You need to be able to build a network of contacts, including financial advisors, attorneys, and accountants, to generate leads and referrals.
  • Product Knowledge: You need to have a good understanding of the different types of life insurance policies, their features, and benefits, to help clients choose the right policy for their needs.
  • Time Management: Time management is essential in this field. You need to be able to manage your time effectively to meet with clients, generate leads, and close deals.
  • Persistence: Selling life insurance is not an easy job, and you will face a lot of rejection. You need to be persistent and continue to work hard even when things get tough.

What are the Different Ways to Make Money Selling Life Insurance?

There are several ways to make money selling life insurance, including:

  • Commission: Most life insurance agents earn a commission based on the policies they sell. The commission percentage varies depending on the insurance company and the policy type, but it can range from 30% to 90% of the premium.
  • Bonuses: Some insurance companies offer bonuses to agents who meet specific sales targets. These bonuses can be in the form of cash, trips, or other incentives.
  • Renewal Commissions: Some insurance policies generate renewal commissions for the agent. This means that you will earn a commission every time the policyholder renews their policy.
  • Residual Income: Some life insurance policies have a savings component, and the agent can earn a percentage of the interest earned on the savings portion of the policy.

What are the Challenges of Selling Life Insurance?

Selling life insurance is not an easy job, and there are several challenges that agents face, including:

  • Fierce Competition: The life insurance industry is highly competitive, and there are many agents vying for the same clients.
  • Rejection: Agents face a lot of rejection in this industry, and it can be demotivating.
  • Regulations: The insurance industry is highly regulated, and agents need to stay up to date with the latest regulations and compliance requirements.
  • Client Retention: It’s not just about making the sale; agents also need to focus on client retention to generate renewal commissions and residual income.


Selling life insurance can be a lucrative career if you have the right skills and mindset. It’s not an easy job, and it requires hard work, persistence, and excellent sales skills. However, if you can overcome the challenges and build a network of clients and referral sources, you can make a substantial income selling life insurance. So, can you make 200k a year selling life insurance? Yes, it’s possible, but it’s up to you to make it a reality.

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