- Commission is a percentage of premium. Carriers publish the schedule, and your contract level sets your share.
- First-year commission is usually much higher than renewal commission.
- Some commission is advanced and can be charged back if the policy lapses early.
- Ask for the commission arrangement, fee list, and chargeback terms in writing.
On this page
- How do life insurance agents get paid?
- What is the difference between first-year and renewal commission?
- What is a contract level?
- What are advances and chargebacks?
- What should you ask any agency about commission?
- What is included at Checkmate?
- When commission pay is not for you
- Frequently asked questions
How do life insurance agents get paid?
Agents are paid by the carrier, through the agency they are contracted with, when a policy is issued and the premium is paid. The amount is a percentage of the premium. Each carrier sets a commission schedule by product, and the percentages differ between carriers, products, and ages. You will see the exact numbers in your contract, not on a website.
What is the difference between first-year and renewal commission?
Most life insurance pays far more in the first policy year than in later years. This is called a heaped structure. Some products use a level structure, where first-year and renewal rates are closer. The industry reason is that most of the work, such as underwriting, happens up front. For you, it means a policy that stays in force is the goal, because early income depends on it.
| Structure | How it pays | What it means for you |
|---|---|---|
| Heaped | High first-year percentage, much lower renewals | Most income arrives at issue, so persistency matters |
| Levelized | First-year higher than renewals, but with a smaller gap | Income is spread more evenly across years |
| Level | Same percentage in the first year and in renewals | Steadier, and less common on products new agents sell |
What is a contract level?
A contract level is the share of a carrier's commission schedule that you receive. Carriers pay agencies at a high level, and agencies pass a share to each agent. A higher level means more of each commission reaches you. Levels can depend on production and on the agency, and rules differ by agency. Ask how your level is set, how it can change, and where each change is written down.
What are advances and chargebacks?
Many carriers pay commission in advance, before the full year of premium has been collected. If the policy lapses or is canceled early, the carrier may take back the unearned portion. That is a chargeback. The window and the rules depend on the carrier and contract. At Checkmate, 98.1 percent of policies are in force at six months and 92.4 percent at twelve months. Those are agency-wide figures, not a prediction for any one agent.
What should you ask any agency about commission?
- What is my starting contract level, and how can it change?
- When is commission paid, and how does it reach me?
- What are the chargeback terms, and are there any fees for leads, software, or desk space?
- Who owns the client relationship and the book of business if I leave?
- Can I see all of this in writing before I sign?
What is included at Checkmate?
On our agent page, Checkmate lists the CRM, dialer, and live training as included, and inbound calls and qualified leads as delivered. We do not publish a commission schedule on this site. Ask for the arrangement that applies to you and read it before you decide.
When commission pay is not for you
Commission rewards results and leaves no cushion in slow weeks.
- You need income to be the same every month. Commission is uneven, especially in the first months.
- You are not comfortable with chargebacks. A lapsed policy can reduce commission you already received.
- You want a salary. Read our salary guide for what the federal data shows by pay structure.
Frequently asked questions
How much commission does a life insurance agent get?
It depends on the carrier, the product, and your contract level. Each carrier publishes a commission schedule as a percentage of premium, and the first-year rate is usually much higher than renewal rates. Your contract states your exact percentages.
Do life insurance agents get paid every year on a policy?
Often yes, but at a lower renewal rate than the first year, and some products pay renewals for a limited number of years. The structure is in the carrier schedule and your contract.
What is commission advancing?
Advancing means the carrier pays part of the expected commission before all of the premium has been collected. If the policy ends early, the carrier can recover the unearned part through a chargeback.
Do agents pay for leads out of commission?
At some agencies, yes. Lead costs, software fees, or desk fees can be deducted or billed separately. Ask for the fee list in writing, and compare it to what the agency includes.
Does Checkmate charge agents for leads or software?
Checkmate lists the CRM, dialer, and live training as included on its agent page. Ask the team for the full written arrangement, including any fees, before you apply to start.
Sources
Source links last checked November 13, 2026.
This page is general education about the insurance profession. It is not legal, tax, or career advice, and it does not promise income, appointment, or approval of any application. Licensing rules are set by each state and change, so confirm the current requirements with your state insurance department. Checkmate does not guarantee earnings. Coverage sold by Checkmate agents is subject to underwriting approval, and product and carrier availability varies by state.
Talk to the Checkmate team.
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