Do Insurance Agents Receive Employer Benefits?

Insurance agents come in a wide variety of shapes and sizes, and the amount of money they make is almost as varied as the kinds of agents there are on the market today. While the average earnings for an insurance agent is a little over $46,000, that doesn’t take into account whether or not the agent gets benefits from an employer or not.


Do Insurance Agents Get Benefits?

The answer to this question varies, because not all insurance agents are the same. For instance, some insurance agents are completely independent. This means that they have their own offices, pay for their own expenses, etc. They just sell policies for insurance companies, and receive a commission based on all of the policies they sell. They are often considered independently employed, and all costs rest firmly on the independent agent’s own shoulders.
On the other hand, captive agents work for a single company, and they sell only that company’s insurance policies. These agents are more often treated like regular employees, and they have access to all of the resources of the company that employs them. Often these agents may also receive a base salary, on top of any commissions they make. Sometimes companies also offer these captive agents benefits as a way to keep them working hard and happy with their position so they’re as productive as they can possibly be.

Contractors Versus Employees

The important question for many situations like this is whether insurance agents are considered contract employees, or whether they’re considered regular employees. Contractors are simply paid a flat fee for their work, and all of the complications like taxes, benefits and other things are left for the contractors to take care of. However, regular employees are often given benefits, bonuses, and other things to help ensure they work hard and feel properly rewarded for everything they do.

That’s the question that has to be answered if someone wants to work as an insurance agent, but who also wants to receive employer benefits. If they’re paid as a contractor, then they won’t receive benefits, period. On the other hand there’s no guarantee that being a regular employee will offer them either. However, with the legal requirements looming and the need for insurance companies to attract and keep the best agents possible to sell coverage, offering benefits is just one more way to draw insurance agents in.

The Benefits of Benefits


An employer benefits package is something that’s meant to sweeten the deal, but for those who are looking at the pros and cons of taking a job, the benefits can be what really makes the difference. While a higher commission percentage or pay rate might be used in place of benefits, and while it might be appealing in the short run, insurance and other bonuses can be worth their weight in gold when something happens and a person needs to be taken care of without bankrupting him or herself in the process of getting back on their feet.