How Do Life Insurance Brokers Get Paid? 
Life insurance brokers are paid a % of the commissionable premium of the life insurance policies they place . Each life insurance carrier and product pays differently , and agents are paid on different schedules set by the general agencies they use . For Term Life insurance , the commission is usually paid only on the first year premium , and if the policy lapses before the year ends , the broker may lose some or all of the commission . For Permanent policies and some Term policies , a small residual commission is paid to agent for years after the first year 's commission is paid . Of course , some agents work for brokers and are simply paid a salary . 