Top 6 Best Paying Jobs in Life Insurance

What are the Top Paying Jobs in Life Insurance?

Roughly 70% of Americans want to be their own boss, but only 6% are.

Being your own boss can have a lot of benefits, from better pay to more fulfillment, a flexible schedule, and enhanced room for growth.

But breaking into the business of being your own boss can be tough.

Life insurance is one career path that can offer great pay, both for self-employed agents and in-office positions.

If you're curious to know what the best-paying jobs in life insurance are—you've come to the right place.

Below, we take a look at 6 of the best-paying jobs, as well as a brief overview of the qualifications and experience they require.

Keep reading to get an idea of what the most lucrative insurance jobs pay, so you can map out your new career path.

1. Life Insurance Actuary

One of the best-paying life insurance careers is that of an actuary.

According to the BLS, the median annual salary of an actuary is $111,030. This data is from 2020, but it is the most recent official salary data from the BLS.

If you want to break this down into an hourly rate, it equates to roughly $53 per hour.

Most insurance actuaries work full-time for an employer in an office setting.

Life insurance actuaries' work mainly consists of developing insurance policies for groups and individuals. A key part of the role is using risk factors to estimate life expectancy.

To become a life insurance actuary, you need to have a strong background in statistics, mathematics, and business. Most actuaries start with a bachelor's degree in actual science or a related field.

To become a certified actuary, you also need to take a series of exams.

Some actuaries go on to climb the corporate ladder and become CEOs. Others become actuary specialists, work as educators, or operate as independent consultants.

As far as the job outlook is concerned, actuaries are likely to be in high demand. The BLS projects an employment growth rate of 18% up to 2029.

This is a far higher rate of growth than average.

Pros:

High earning potential
High projections for job growth
Room for career growth

Cons:

Less suited for those who want to be self-employed
Stringent education requirements
Work takes place in a typical office setting
Actuaries work primarily on their own

2. Independent Life Insurance Agent

If you want to earn well and be your own boss, becoming an independent life insurance agent could be the ideal option.

Independent life insurance agents can earn very attractive salaries while enjoying the freedom of being able to work for themselves.

According to insurance job salary estimates, independent life insurance agents earn an average yearly income of $91,500.

What's more, top performers can earn up to $150,000 per year.

This is far higher than what most captive agents make.

Captive vs Independent Insurance Agents

Captive agents are employed directly by carriers. They are confined to selling the products of their carrier.

Independent agents can pick and choose which carriers they want to contract with and what products they want to sell. This enables them to better serve their clients.

Independent agents typically earn higher commissions than captive agents. They also have total ownership of renewal commissions.

Renewal commissions are a valuable income source for life insurance agents. Every time a client renews their policy, you receive ongoing commission.

Over time, renewal commissions can build up into a sizeable stream of essentially passive income.

Captive agents also earn renewal commissions, but there is a catch. They usually do not hold absolute ownership over their renewal commissions.

If a captive agent leaves their carrier, they may have to forfeit their commissions.

Depending on how long they've worked for the carrier, this can constitute a pretty big financial hit. The prospect of losing renewal commissions can keep captive agents locked into working with a specific carrier longer than they'd like.

Independent agents don't have this problem. They retain complete ownership over renewal commissions. As long as policyholders continue to renew, they keep earning.

Job Satisfaction

Working as an independent life insurance agent can also give you more scope to truly help people. Instead of punting whatever products a carrier has, you can cherry-pick products and put your client's best interests center stage.

Not only is this better for business, but it can also allow you to truly make a difference in people's lives by matching them with the right coverage.

Qualification Requirements

Another big pro to becoming an independent life insurance agent is the low barriers to entry.

You do not need a degree or any higher education to become an independent insurance agent. Instead, all you need to get started selling insurance is to take any state-required insurance agent training and pass your licensing exam.

Most states require pre-licensing classes. However, these usually only take between 20-40 hours.

Once you have sat your license exam, you will also need to take product-specific training, either through an IMO or via a carrier.

Pros:

High earning potential
Freedom to be your own boss
Complete ownership of renewal commissions
Low barriers to entry and highly achievable education requirements
Rewarding work and the ability to match clients with the perfect products for their life insurance needs

Cons:

Independent agents have to generate their own leads
Requires self-motivation

3. Final Expense Insurance Agent

Final expense insurance provides coverage for burial, funeral, and other end-of-life expenses.

Like traditional life insurance, selling final expense insurance can be very lucrative.

Life insurance and final expense coverage can be a tough sell, as they center around a topic that most people don't want to think about—their immortality.

But, if you can master the art of final expense sales, you can enjoy a steady stream of income, including attractive residual commissions.

Salary estimates plump average final expense agent earnings at over $102,000 per year. This equates to $49 per hour.

Top-producing agents can make as much as $139,500 a year.

The educational requirements for becoming a final expense insurance agent are very similar to selling regular life insurance. You will need to undergo any life insurance pre-license exam training required by your state, and then obtain specific final expense product training.

If you're considering a career in life insurance, keep in mind that as an independent agent, you can sell both final expense and traditional life insurance products at the same time.

Pros:

High earning potential
Freedom to be your own boss
Complete ownership of renewal commissions
Low barriers to entry and highly achievable education requirements
Rewarding work helping families identify the final expense products that truly meet their needs

Cons:

Independent agents have to do their own marketing
Requires self-motivation and the ability to manage your own time

4. Life Insurance Underwriter

Another relatively well-paid position in the life insurance industry is that of an underwriter.

Life insurance underwriters typically earn an average salary of around $79,000 per year.

However, if you're starting a new job as a freshly qualified underwriter, you won't be able to expect nearly this much.

Starting salaries for life insurance underwriters can be as low as $37,000, but those at the top of their field can earn up to $103,000 per year.

Insurance underwriters are responsible for evaluating the individual risk associated with a policy application. They have to determine whether applicants meet carriers' underwriting standards.

Insurance underwriters have to evaluate the insurability of applicants, develop policy terms, and communicate with agents. They also need to adhere to state and federal underwriting requirements.

Pros:

Potential for attractive compensation
Good job stability
Good career growth opportunities

Cons:

High amounts of pressure and responsibility (errors can trigger costly mistakes for the insurance carrier)
Limited human interaction (mostly involves working with data)
Repetitive work
Starting salaries can be low for junior underwriters

5. Life Insurance Sales Manager

Are you good at managing people?

One of the best-paying jobs in life insurance is that of sales manager.

Life insurance sales managers earn very good salaries, netting over $104,000 per year on average. This works out to around $50 an hour.

And if you can work your way into the top 4% of earners, your salary could be anywhere between $129,000 to $150,000.

One of the reasons life insurance sales managers earn so well is that they often receive commissions on top of their base salary, as well as production bonuses and other incentives for meeting performance goals.

Life insurance sales managers typically oversee and lead teams of agents. Besides helping agents develop their skills and achieve their sales targets, managers might also sell policies themselves.

Some life insurance sales managers work in a traditional office environment, but this role also has the potential for flexible hours and work-from-home arrangements. This makes it one of the best jobs if you're craving the ability to manage your own time.

Besides good pay, there is also room for growth in this position. Some sales managers go on to fill higher-management roles or executive positions.

Pros:

Great earning potential
Flexible schedules and potential ability to work from home
Fulfilling work that involves helping agents succeed and matching clients with the right life insurance products
Good opportunity for growth

Cons:

Pressure to meet sales targets
Long working hours can be required

6. Financial Analyst

Is crunching numbers like Coco Pops your thing? If you have a background in finance—you could also consider becoming a financial analyst in the life insurance industry.

Financial analyst is another of the best-paying jobs in life insurance, with average yearly salaries hovering around $81,600.

The majority of financial analyst insurance careers require a bachelor's or master's degree in finance or business. You will also need relevant experience, such as experience in accountancy, as an auditor, or as a financial analyst in another industry.

Knowledge and experience with life insurance financial concepts like underwriting and mortality rates is also key.

Pros: