Commissions
Legal and regulatory terms governing life insurance contracts.
What Is Commissions?
Commissions are the compensation paid by insurance carriers to licensed agents for selling and servicing life insurance policies. Commission rates vary by policy type and carrier — typically ranging from 40% to 120% of the first-year premium for permanent policies, with lower renewal commissions in subsequent years. Term insurance commissions are generally lower. Commissions are paid by the carrier, not directly by the policyholder, but they are embedded in the premium structure. Under Nevada law (NRS 683A.341), commissions may only be paid to licensed agents. This site operates as a lead generation platform; agents in our network are compensated by carriers through standard commission arrangements.
Nevada Context
Nevada requires commission disclosure in certain contexts, particularly for annuities. Agents in our network are licensed Nevada insurance professionals who earn carrier commissions — not fees charged to you directly.
How It Affects You
Understanding that agents earn commissions helps you evaluate recommendations. Asking an agent which carrier pays higher commissions — and how that might influence their suggestions — is always a reasonable question.
Commissions in Practice
A Nevada agent places a whole life policy with a first-year premium of $5,000; the carrier pays an illustrative 80% first-year commission of $4,000 to the agent, declining to smaller renewal commissions in subsequent years.
Dollar amounts shown are illustrative. Actual amounts vary by carrier, applicant age, health status, and individual underwriting.
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