How Much Commission Does A Life Insurance Agent Make On A Policy? 
When a Term policy is sold , the insurance company pays out from 50 % to over 100 % of the first year premium for commissions . With Term insurance , if there are any commissions paid after the first year , they are very small . Permanent insurance pays out a residual commission each year that the policy is in effect . It should be noted that it is not just the agent who gets the commission paid by the carrier . If there is a general agency/brokerage involved -LRB- as there usually is -RRB- , they get a cut . If the agent works for an agency or office , they will probably get a cut . So what the agent earns depends on whether he/she is independent and/or works directly with the carrier , or whether he/she is part of a team that places the policy and shares the commission . 