How Does A Life Insurance Agent Get Paid? 
They are paid a commission from the insurance company . There is no pass on charges to the applicant . You pay the same rate whether you apply through an agent or not . Generally speaking , 100 % of the first years premiums are paid out in commissions . This may all go to the agent or divided up with his upline managers . Insurance companies benefit from this because they do not have to pay salaried people to market their products . It makes for a more effective distribution system . 