Health insurance agents can make a positive impact on people’s lives by helping them find the policy that best suits their healthcare needs – something that makes the job truly rewarding. But is it worth the pay?
In this article, Insurance Business answers the question, “How much do health insurance agents make?” We will give you a breakdown of the different salary ranges and state-by-state wages, as well as compare the profession’s earning potential with other types of insurance agents. Read on as we give you a rundown of everything you need to know on how much income health insurance agents make.
Employment websites provide different wage estimates for health insurance agents, but the general salary projection ranges between $46,000 and $55,000. How much health insurance agents make can vary significantly, depending on a range of factors. These include:
The table below reveals the percentile wage estimates for health insurance agents across the US, according to data gathered online.
Based on the analysis, most health insurance agents in the country earn average salaries around $41,000 to $88,500 annually, or between the 25th and 75th percentiles. Earnings above or below this salary range are considered outliers.
A health insurance agent’s earning potential can likewise be influenced by the number of policies they sell. You can find out how much health insurance agents make per policy in this article.
Because each state has different requirements for healthcare coverage and varying rules on how health insurance is sold, how much a health insurance agent makes also differs depending on where the policies are sold. Overall, there are six states where average salaries are above the national average. These are:
Meanwhile, these are the next 10 highest-paying states, where annual salaries are just below the country’s average.
At the other end of the spectrum are the lowest-paying states for health insurance agents ranked below.
Do health insurance agents earn more than agents in other insurance lines? The table below, which shows the median salaries of the different types of insurance agents across the US, provides the answer.
How much do health insurance agents make vs. agents in other insurance lines
|
INSURANCE AGENT SALARY COMPARISON BY BUSINESS LINE |
||||
|---|---|---|---|---|
|
Business line |
Annual wage |
Monthly wage |
Weekly wage |
Hourly wage |
|
Health |
$55,188 |
$4,599 |
$1,061 |
$27 |
|
Life |
$62,552 |
$5,213 |
$1,203 |
$30 |
|
Car |
$50,408 |
$4,200 |
$969 |
$24 |
The type of policy health insurance agents sell also has a major impact on their earnings. Agents often offer customers plans that can be accessible in the health insurance marketplace, although they can also recommend options available from private health insurers.
The commission rates vary depending on the health insurance provider they are working with, but the general range is from 5% to 10% of a policy’s premiums for the first year. The rates typically go down once a plan has been renewed.
Health insurance agents specializing in group policies, meanwhile, earn slightly lower commissions ranging from between 3% and 6% of the total premiums. Since group plans are often purchased by businesses for their employees, health insurance agents can make up to four- or even five-figure earnings per company, depending on the number of staff.
If you want to get an idea of how much insurance agents make, our comprehensive guide can help.
Health insurance agents sell policies on behalf of insurance providers. Captive health insurance agents work exclusively for an insurance company, while independent agents can offer health plans from multiple insurers.
These licensed professionals are responsible for explaining the key features and benefits of the different health policies from their partner carriers to clients, helping them find the coverage that matches their needs.
This duty is similar to that of an insurance broker. The main difference is agents represent insurance companies while brokers are required to act in the best interest of the insurance buyers. If you want to learn more about what this type of industry professional does, check out our comprehensive guide on how to become an insurance broker.
Health insurance has become an essential form of coverage for many Americans because of the high cost of medical care and treatment across the country. Health insurance agents play a vital role in helping individuals and families access affordable health insurance plans that fit their needs.
The most successful health insurance agents possess a combination of hard and soft skills that enable them to assist insurance buyers in getting the best possible coverage. Here are some of the top skills and attributes health insurance agents need to thrive and grow professionally:
The answer to this question depends on an agent’s situation and goals. While branching out to sell life insurance may help increase a health insurance agent’s earning potential, this also entails having to meet a separate set of licensing requirements. There aren’t really any huge drawbacks to selling insurance for both lines.
What are the top health insurance companies in the US?
Another major benefit of being a health insurance agent is the opportunity to partner with the industry’s biggest names. According to the National Association of Insurance Commissioner’s (NAIC) latest accident and health insurance market share report, the 10 largest health insurance companies in the US control more than half, or 57%, of the overall market.
These insurers provide basic health insurance policies to individuals, families, and businesses, including Medicaid and Medicare plans, long-term care insurance, dental insurance, and vision care benefits.
The table below ranks the top 10 health insurance providers in the country based on NAIC’s most recent figures.
You can check out the complete list, along with each insurer’s profile, in our latest rankings of the largest health insurance providers in the US.
Our list of the top insurance websites for insurance jobs is the best place to start if you’re looking for job opportunities for health insurance agents. A quick search on these sites can yield hundreds, if not thousands, of job postings, which you can filter to match your skills and qualifications.
Some of these listings are from renowned industry names that offer not just great benefits and compensation package but also a positive workplace culture that enables health insurance agents to thrive and grow professionally. Jumpstart your health insurance career right now by clicking on the link above.
Were you surprised to find out how much insurance agents make? Do you think being a health insurance agent is a rewarding career? Share your thoughts in the comments section below.
