How Much Can You Make Selling Life Insurance and Medicare?

Get Contracted Today Team · October 19, 2026 · 6 min read

It is the first question almost every new agent asks, and it is the one recruiters are most likely to answer with a screenshot of somebody's best month. The honest answer is that income in this business swings widely. It depends on your contract level, your leads, how many hours you put in and how many of your policies stay on the books. Here is what the real numbers say.

What the government data shows

The U.S. Bureau of Labor Statistics reports that insurance sales agents earned a median of $62,280 a year in May 2025. The lowest 10 percent earned less than $37,330, and the top 10 percent earned more than $138,140 (BLS Occupational Outlook Handbook). That is a wide range, and it covers all kinds of agents, including salaried employees.

BLS also notes that independent agents may be paid by commission only, and that commission amounts depend on the type of insurance, the amount sold and whether it is a new policy or a renewal (BLS). In other words, there is no floor. What you earn is tied to what you place and keep.

How final expense commissions work

Final expense carriers pay a percentage of the policy's annualized first-year premium. One industry guide lists typical contract levels of roughly 80% to 100% for entry or captive agents, 100% to 115% at street level, and 115% to 130% or more at higher agency levels. Guaranteed-issue products often pay less (Insurance Marketing Co.).

Here is a simple example, for illustration only. A client pays $50 a month, or $600 a year. At a 90% contract, your first-year commission on that policy is $540. At 120%, it is $720. Same client, same work, a $180 difference on one sale. Over a year of writing business, your contract level can matter as much as how hard you work.

Advances and chargebacks: the part recruiters skip

Most final expense carriers advance commissions, paying six to nine months up front instead of month by month. The catch: if the policy lapses inside the advance period, you owe back the unearned portion, usually taken out of your future statements as a negative balance (Insurance Marketing Co.).

That means a big advance check is not the same as income you have earned. New agents who write a lot of business that does not stick can end up owing money. Placing the right product, confirming the bank draft date and following up after the sale protects your paycheck as much as it protects your client.

How Medicare Advantage pay works

Medicare pay is set very differently. CMS caps what plans can pay agents. Generally, agents receive an initial payment in the first year and about half as much in each year after, as long as the member stays enrolled (CMS).

For 2027, the national maximum for a Medicare Advantage enrollment is $725 initial and $363 renewal per member per year. It is higher in a few markets, such as $816 in Connecticut, Pennsylvania and D.C., and $902 in California and New Jersey. Stand-alone Part D plans max out at $130 initial and $65 renewal (Ritter Insurance Marketing).

Those are ceilings, not promises. Carriers may pay any amount up to the cap, or nothing. For 2027, Aetna told brokers it will not pay commissions on new enrollments in 123 Medicare Advantage plans across 33 states (Medical Daily). You should always place clients in the plan that fits their doctors, drugs and budget, whatever the commission is. Medicare also requires agents to be licensed, complete annual training and follow all marketing rules (CMS).

Why renewals and book ownership matter

Medicare renewals are where long-term income comes from. A client you enroll this year can keep paying you a renewal every year they stay in the plan. Over time, a book of loyal clients can become steady income that does not depend on this month's leads.

That only helps you if the book is yours. Some captive and MLM-style agencies keep the renewals or the client relationships when you leave. Before you sign anything, find out who owns your book and your renewals, and get it in writing.

What actually moves your income

• Contract level. A higher contract pays more on the exact same sale.
• Lead quality and cost. Cheap leads that never answer cost you time. Forced lead purchases can eat your commissions before you see them.
• Persistency. Policies that stay on the books keep your advances and your renewals.
• Carrier choice. More carriers means more clients you can actually place.
• Your expenses. Independent agents are usually paid commission only, so leads, travel, licensing and E&O coverage come out of your pocket.

Practical next steps

• Get your contract level for every carrier in writing before you write your first policy.
• Ask how advances, chargebacks and debit balances are handled if you leave.
• Track every sale for at least 12 months to see what really sticks.
• For Medicare, check what each carrier actually pays in your counties this year.
• Choose an upline that gives you training and support without lead quotas or pay-to-play fees.

This article is general information, not a promise or estimate of income. Commission levels, advance terms and Medicare compensation vary by carrier, product, state and year, and can change without notice.

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