Commission Calculator for Insurance Agents
Insurance pays twice: a first-year commission on the premium, then smaller renewal commissions for as long as the policy stays active. Enter a policy to see both.
What this policy pays you
Selecting a line of business loads typical rates — override them with your own contract's numbers.
How insurance commissions work
Rates differ enormously by line of business, and the difference between first-year and renewal rates shapes the whole career:
| Line | First-year | Renewals |
|---|---|---|
| Auto / Home (P&C) | 10–15% of premium | 8–12% ongoing |
| Life | 60–90% of first-year premium (sometimes 100%+) | 2–5% for years 2–10 |
| Health (individual) | ~15–25% or flat per-member amounts | 4–8% |
| Medicare Advantage | Flat CMS-capped amount per enrollment | Roughly half the initial amount yearly |
Life insurance front-loads almost everything into year one — big checks, but little residual. P&C pays modestly up front and builds a renewal book that eventually pays you whether you sell that month or not. That renewal book is why established P&C agents are hard to dislodge.
Chargebacks and captive vs independent
Life commissions are usually advanced — you're paid 6–12 months of expected premium up front. If the policy lapses inside the chargeback window (often the first 12 months), the unearned advance is deducted from future pay. Captive agents (one carrier) generally get lower commission rates in exchange for leads and infrastructure; independent agents keep more but fund their own pipeline.
The renewal book is the asset — track it like one
An agent's real net worth is the renewal stream, but it's exactly the income nobody calculates properly: dozens of policies, different rates, different anniversary dates, occasional lapses. The Controlla app tracks each policy's payments on their actual schedule, so you can see your true monthly income — new business and renewals together.
Frequently asked questions
What percentage of commission do insurance agents make?
Auto and home typically pay 10–15% of premium in the first year and 8–12% on renewals. Life insurance pays 60–90% of the first-year premium up front but only 2–5% on renewals.
What is a chargeback in insurance sales?
When a policy lapses or cancels during the chargeback window (commonly the first 12 months), commission that was advanced to the agent is deducted back from future paychecks.
Do insurance agents get paid every year a policy renews?
Yes — renewal commissions pay as long as the policy stays in force and the agent retains the book, which is why long-term agents build substantial passive income.
How do captive agents' commissions differ from independent agents'?
Captive agents (representing one carrier) usually accept lower rates in exchange for leads, branding, and support; independent agents earn higher percentages but cover their own costs.