How Much Money Does life Insurance Agents/Advisors make?

A life insurance agent's commission depends upon two main factors, which are
- the company where he/she is working, as each company has different products thus different commission structure
- the amount of business done by agent.

Basically, there are two types of plan sold in the insurance market, which are -
1) Traditional - Pure insurance products
2) ULIP- Insurance come investment

In traditional plan there is higher commission as customers commit to pay for longer period and there is hardly any significant return to be paid by insurance company. Company makes good money. Commission may range between 30-50%.

ULIP hsa been more popular and sold more easily in this decade. But, now it has come under hammer of the regulatory body i.e. IRDA(Insurance Regulatory & Development Authority). Commission percentage has gone down and there is ample number of indications that it may go down further. It is going to be much harder to sell ULIPs as several rules and regulations are undergoing changes. At present, ULIP's commission range between 2-25%.

So, life insurance agent/advisor earns about 20% commission on the total amount of premium collected. It is obviously a very good moneymaking profession.

If an agent/advisor who is selling 10 polices/month with average ticket size of Rs 20,000. He/she can easily earn Rs 40,000/month.

There are also some contests which are launched by companies for "Reward & Recognitions" which add more to the kitty of insurance agent/advisor.