In this article I’m going to share with you everything that you need to know to sell life insurance it’s going to be a complete beginner’s guide from getting licensed to selling your first policy how much realistically can you make as a life insurance agent I’m going to be covering it all in this article.

If we haven’t met yet my name is Johnny Nan and I’ve made over $500,000 in life insurance commissions in just under 2 years. To be transparent I’m going to be answering all the questions that you haven’t even thought of asking your agency owner your upline the person who brought you into the business so you can avoid common pitfalls in this industry.

I only share these things with you because I’ve been burned multiple times and I’ve been at multiple agencies in the life insurance space and I want to make sure you have the lessons without the scars.

Before I get into exactly how to get licensed and start selling I want to answer your very first question that you’re probably going to ask yourself which is how much realistically can life insurance agents make.

The reality is the average agent only makes $50,000 per year. Now there’s a huge wide range of people who do make it and also people who don’t make it in this space. The reality is 92% of life insurance agents fail so there is a lot of risk involved but just like any other industry there’s people who make it and the people who don’t.

The people who actually do make it and do succeed win big your potential is uncapped and you can make 20 to 40K a month relatively quickly within 1 to 2 years of starting from zero. There’s people that I’ve personally met and been mentored by that make over seven even eight figures per year which is very few and far between but it is possible.

How Much Can Life Insurance Agents Realistically Make?

One of the very first questions every new agent asks is:

“How much money can I realistically make selling life insurance?”

The honest answer is that there is a very wide range of income levels in this industry.

The average life insurance agent makes around $50,000 per year.

That is the reality for the majority of agents. However, the other side of the equation is equally important to understand.

There are agents who make six figures. There are agents who make multiple six figures. There are agents who make seven figures. And there are a very small number of people making eight figures in this business.

The life insurance industry has uncapped income potential.

The biggest challenge is that approximately 92% of life insurance agents fail. That means the majority of people who get licensed never stay in the business long enough to become successful.

Why does this happen?

Because this business is harder than most people expect.

Recruiters often focus on the upside:

Luxury cars, Rolex watches, large commission checks, freedom, passive income, agency ownership, and financial independence.

And while all of those things are possible, very few people openly discuss the sacrifices required to achieve those outcomes.

Success in life insurance requires:

Long hours
Emotional resilience
Consistency
Discipline
Rejection tolerance
Sales ability
Lead investment
Patience
Business skills

The agents who survive the difficult first year often go on to create incredible income and freedom.

Many successful agents begin earning between $20,000 and $40,000 per month within one to two years after starting from zero.

The people who succeed in this industry usually think long term.

They understand that this is not a quick money scheme.

It is a real business.

Step 1: Getting Your Life Insurance License

So let me share with you exactly how you can get licensed. The way I did it was I started with a pre-licensing course called America’s Professor. Not all states have that but if they don’t then I would use Excel Solutions.

It doesn’t matter necessarily the pre-licensing course. The thing that matters most is that you get through all the course content that you do really well in the quizzes and then you take as many practice tests as humanly possible.

It’s just a standardized test that you have to pass and typically it’s a 70% or higher to pass and it’s just a pass fail. The nice thing about these questions is that they’re all multiple choice.

Once you pass the exam then it’s time to submit your application for licensing to the state. Once approved you officially become a licensed life insurance agent.

Step 2: Choosing What Type of Insurance to Sell

One of the biggest mistakes new agents make is entering the business without understanding the different products available.

The life insurance industry contains many different niches.

Some of the most common include Final Expense, Mortgage Protection, Term Life Insurance, Whole Life Insurance, Universal Life Insurance, Indexed Universal Life (IUL), High Cash Value Whole Life, Annuities, Retirement Planning, and Infinite Banking.

Each product category has:

Different sales processes
Different target markets
Different commission structures
Different levels of complexity

Understanding the Two Learning Curves

Every new life insurance agent goes through two separate learning curves.

1. The Sales Learning Curve

This includes:

Communication skills
Objection handling
Building trust
Closing deals
Discovery questions
Presentation skills

2. The Industry Knowledge Learning Curve

This includes:

Understanding insurance products
Underwriting
Carrier guidelines
Policy structures
Health classifications
Compliance

The challenge is learning both at the same time.

This is why beginners should usually start with simpler products.

Why Final Expense Is the Best Product for Beginners

For most beginners, final expense insurance is one of the best places to start.

Why Final Expense Is a Golden Opportunity

Every single day, approximately 10,000 people turn 65 years old.

That means the senior market is constantly growing.

Final expense insurance is designed to help seniors cover:

Funeral costs
Burial expenses
Medical bills
Debts
Small inheritance needs

These policies are usually small whole life insurance policies ranging from:

$5,000
$10,000
$20,000
$30,000
$50,000

The sale itself is relatively simple because every person understands one reality:

Eventually, everyone dies.

Many seniors do not want their families burdened with funeral costs.

That emotional reality makes final expense one of the simplest life insurance sales.

Benefits of Selling Final Expense

The policies are straightforward, the clients understand the need, and the sales process is easier compared to advanced financial products. Many final expense carriers pay commissions quickly, often within one to four days, which creates strong cash flow for new agents.

Final expense sales can often happen in a single call where you can call, present, enroll, and get paid. Since most final expense clients are seniors, agents can usually work daytime hours, creating a better lifestyle for many people.

Step 3: Choosing the Right Insurance Agency

Finding the right agency is one of the most important decisions you will make.

Many agents fail because they join organizations that do not truly support them.

There are two major agency models:

Captive Agencies

Captive agencies usually:

Sell one company’s products
Offer lower commission levels
Provide leads
Offer structured training
Sometimes provide base salary

Typical commission levels:

These agencies are lower risk because they often provide support and leads.

Independent Agencies (IMO/FMO)

Independent agencies allow agents to:

Broker multiple carriers
Shop rates
Offer more solutions
Build larger commissions

Typical starting commissions:

90%
100%

Top producers may eventually reach:

150%
170%

Independent agencies usually require agents to purchase their own leads.

This model offers more upside but also more risk.

Recruiting-Based Companies vs Sales-Based Companies

This is one of the most important distinctions new agents need to understand.

Recruiting-Based Companies

In recruiting-focused organizations:

Promotions depend on recruiting
Commission increases depend on building teams
Agents are encouraged to recruit immediately

Many new agents become distracted by recruiting before learning how to sell.

This often hurts their income.

Sales-Based Companies

In sales-focused organizations:

Promotions depend on:

Personal production
Consistent sales volume
Performance

For example:

Sell $20,000 monthly production for 3 months
Move to higher contract level

This structure rewards actual selling ability.

Best Advice for New Agents

Focus on personal production first.

Learn how to sell.

Learn how to close.

Learn how to handle objections.

Once you consistently make six figures, then begin helping others.

Step 4: Understanding Leads and Marketing

Leads are the lifeblood of the life insurance business.

Without leads, you have nobody to talk to.

There are several ways to generate leads. Some agents start with friends and family by reaching out to people they know and offering policy reviews and quotes. Other agents prefer buying leads from vendors such as Facebook leads, direct mail leads, internet leads, call-in leads, or live transfer leads.

Some agents hire marketing companies or media buyers to generate leads for them, while advanced agencies often build internal marketing systems to create more control, better optimization, lower lead costs, and scalability.

4. Building In-House Marketing

Advanced agencies often build internal marketing systems.

This provides:

More control
Better optimization
Lower lead costs
Scalability

The reality is simple:

Even average salespeople can make a lot of money with strong marketing.

But great salespeople without leads struggle.

Step 5: Selling Life Insurance Over the Phone

One of the biggest shifts in the industry is the move toward phone sales.

Today, many clients actually prefer buying insurance over the phone.

Remote sales are now one of the most effective methods in the industry.

Why Phone Sales Work

People are comfortable buying remotely.

After COVID, remote purchasing became normalized.

Many clients:

Prefer convenience
Avoid in-person meetings
Want quick solutions

Phone sales allow agents to:

Work faster
Cover more territory
Make more presentations
Lower expenses

The Five Parts of a Life Insurance Sales Presentation

The first goal is understanding why the client requested information, what concerns they have, who they want to protect, their budget, and their health. This stage is about listening, not pitching.

Clients feel more comfortable when they understand what will happen. You explain how the call works, that you will shop carriers, that you will ask health questions, and that you are helping them find the best plan.

During underwriting, you ask health questions, medication questions, medical history, and tobacco usage to identify the best carrier.

Then you move into emotional discovery where you ask who the beneficiary is, who would pay for funeral expenses, how their family would handle the situation financially, and why protecting their family is important.

Finally, you present a good option, a better option, and the best option, then allow the client to choose.

Understanding Commissions and Chargebacks

One of the most misunderstood areas in life insurance is chargebacks.

How Commissions Work

Suppose:

The client pays $100 per month
You are at 100% commission

The insurance company may advance:

9 months of commissions upfront

That means you may receive:

Around $1,080 immediately

This is called an advance.

What Is a Chargeback?

If the client cancels early, you did not technically earn the full commission.

So the insurance company charges back the unearned portion.

This can create major financial problems for agents who overspend.

Best Practice for Chargebacks

Always save:

Of your commissions into a separate account.

This protects your cash flow.

Every agent experiences chargebacks.

Even top producers.

The Truth About the First Year in Life Insurance

The very last thing is that this is a business this is hard this is going to be tough you might have the person trying to bring you in might be recruiting you with uh oh you can buy a Rolex you can buy this Rolls-Royce you can buy these nice cars which is definitely possible but it’s going to be way harder than they probably telling you it’s going to take work it’s going to take sacrifice it’s going to take working 10 12 hours a day the first year is going to be extremely hard but there’s light at the end of the tunnel if you endure it so stay true to it invest into it just like you would a true business and you’re that you’re starting up and have a business owner mindset thinking long term.

Developing the Right Mindset

Life insurance is not just sales.

It is entrepreneurship.

The people who succeed think like business owners.

The people who actually do make and do succeed win big your potential is uncapped and you can make 20 to 40K a month relatively quickly within 1 to 2 years of starting from zero.

The biggest mistake new agents make is expecting instant success.

This business rewards consistency.

Not emotions.

Final Thoughts

Selling life insurance can completely transform your life if you approach it correctly.

You must understand:

The industry
Sales
Leads
Marketing
Products
Client psychology
Financial management
Persistence

The industry has enormous upside.

But it also has enormous turnover.

Most people quit too early.

The agents who stay consistent, continue learning, improve their communication skills, and treat the business professionally often create financial freedom far beyond what traditional careers offer.

The key is understanding from the beginning that this is not easy.