How Exactly Does A Life Insurance Agent Get Paid? 
Most life insurance policies pay a commission to the agent who sold the policy . The commission is usually a percent of the `` commissionable premium '' . The commissionable part of the premium may or may not exclude policy fees , and with universal life there is a target premium beyond which no commission is paid . The commission is usually paid within a month after the policy is placed , although some companies pay faster than others . If the insured drops the policy during the first year , some or all the commission may be charged back from the agent and returned to the life insurance company . 