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How to Become an Insurance Agent: State Licence, Exams, Pay

To become an insurance agent in the US, you need a high school diploma and a licence in each state where you'll sell. In most states that means completing specified courses and passing a state exam on insurance fundamentals and state insurance law, and you'll need separate licences to sell life and health insurance and property and casualty insurance.

A degree isn't required, though some employers prefer one. The bigger decision is which lines you want to sell, because each one needs its own licence.

The facts here come from the US Bureau of Labor Statistics (BLS) Occupational Outlook Handbook page for insurance sales agents, read on 26 October 2026. This is a careers guide, not financial or insurance advice.

Insurance agent pay and jobs at a glance

MeasureBLS figure
Median pay (May 2025)$62,280 a year, $29.94 an hour
Lowest 10 in every 100 earned less than$37,330
Highest 10 in every 100 earned more than$138,140
Jobs in 2025572,600
Projected growth 2025 to 20353%, about as fast as average
Openings each yearAbout 43,100 on average

Those pay figures are as of October 2026, from the May 2025 BLS wage survey. BLS includes commissions and bonuses for meeting targets in these wages.

The route in, step by step

  1. Finish high school or an equivalent. Some employers prefer a bachelor's degree in a field such as business.
  2. Choose your lines. Life and health insurance and property and casualty insurance need separate licences.
  3. Complete the specified pre-licensing courses your state requires.
  4. Pass the state exam covering insurance fundamentals and state insurance laws.
  5. Apply for your licence in each state where you'll work.
  6. Keep it current with continuing education on insurance law, consumer protection, ethics and policy details, which most states require.

The spread most people miss: the top earners

Look at the range, not just the median. The lowest 10 in every 100 agents earned less than $37,330, while the highest 10 in every 100 earned more than $138,140, as of October 2026. That spread is wide because of how agents are paid.

BLS says commissions are the most common form of pay, especially for experienced agents. Independent agents may be paid by commission only, while agency or carrier employees may get salary only, salary plus commission, or salary plus bonus. The commission depends on the type and amount of insurance sold, and on whether it's a new policy or a renewal. So your first year can look very different from your fifth.

Selling investments needs a separate exam

Some agents also sell securities and other financial products. To do that, BLS says you must be licensed by the Financial Industry Regulatory Authority (FINRA):

FINRA examWhat it qualifies you for
Series 6Selling products such as municipal fund securities, mutual funds and variable annuities
Series 7The main FINRA licence, qualifying you as a general securities sales representative

You don't need either to start selling insurance. They're a later step if you want to broaden what you offer clients.

Where insurance agents work and what it pays

Insurance agencies and brokerages employ 63% of agents, and 12 in every 100 are self-employed.

IndustryMedian pay, May 2025
Direct health and medical insurance carriers$73,440
Direct insurance (except life, health and medical) carriers$63,810
Insurance agencies and brokerages$61,550

So working directly for a health and medical insurance carrier paid a median of $73,440, as of October 2026, the highest of the top industries BLS lists. Note that these wage figures exclude self-employed agents.

How new agents learn the job

Much of the training happens at work. BLS says new agents often shadow an experienced agent to learn the products, the sales process and how to work with clients. Employers also expect agents to keep up with changes in tax law, government benefits programs and regulations that affect clients.

Certifications in insurance specialties aren't required, but BLS says they can give you an edge with employers. If you're building your own book of clients, our guide to the best CRM for insurance agents covers keeping track of leads and renewals, and our roundup of insurance agency management software looks at running a full agency. New to the jargon? Start with what an insurance premium is.

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Is it a growing career?

BLS projects 3% growth from 2025 to 2035, about as fast as average, but with about 43,100 openings a year because so many agents move on or retire. It expects the strongest growth among self-employed agents. Most agents work full time in offices, though some spend much of their time travelling to meet clients.

How long it takes

Becoming licensed is one of the quicker routes into a professional career: you'll need the state's pre-licensing courses and its exam, rather than a degree. How long that takes depends on your state and on how many lines you want to sell, since each line is a separate licence. Building a steady income from commissions usually takes longer than getting licensed, so plan for that.

My verdict

You can become an insurance agent without a degree: pick your lines, take your state's courses, pass the exam and get licensed. What decides your income is the sales side, because commissions drive pay and the gap between the bottom and the top earners is huge. If you're comfortable selling and building relationships, it's a career with a high ceiling. If you'd prefer a steadier wage, look for salaried roles with a carrier first.

Frequently asked questions

Do you need a degree to become an insurance agent?

No. BLS says a high school diploma is typically required, though some employers prefer a bachelor's degree in a field such as business.

How do you get an insurance licence?

In most states you complete specified courses and pass a state exam on insurance fundamentals and state insurance laws, then apply for the licence.

Do you need separate licences for different types of insurance?

Yes. BLS says separate licences are required to sell life and health insurance and property and casualty insurance.

How much do insurance agents make?

BLS reports a median of $62,280 a year in May 2025, as of October 2026. The highest 10 in every 100 earned more than $138,140.

Are insurance agents paid by commission?

Often. BLS says commissions are the most common form of pay, especially for experienced agents, and independent agents may be paid by commission only.

Do insurance agents need a FINRA licence?

Only to sell securities and other financial products. FINRA's Series 6 and Series 7 exams cover those.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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