Every year, thousands of life insurance agents sign with an agency based on a recruiter pitch — and discover the real terms only after they are locked in. The commission was lower than promised. The lead cost was not disclosed. The release policy was buried in fine print.
You do not have to make that mistake. Here are the 12 questions you should ask — and get in writing — before you sign anything.
1. What is the exact base commission percentage, and what are the conditions for increasing it?
Do not accept “up to 120%.” Get the street-level rate and the specific production requirements to reach each tier.
2. What is your exact lead cost per lead, and who controls lead quality?
Ask for the cost per lead in writing. Ask whether leads are exclusive or shared. Ask what the agency does when lead quality drops.
3. What is your chargeback policy, and how long is the lookback period?
If a policy lapses in months 1-12, who bears the cost? Pro-rata or full chargeback? This is where agents get blindsided most often.
4. Do you have an open release guarantee?
If you decide this is not the right fit, can you leave? Under what conditions? With or without your book? Get the release policy in writing before day one.
5. When do my renewals vest?
Day 1 vesting is an agent protection. Anything longer is a lock-in mechanism. Know the terms before you build a book here.
6. What is my total day-one out-of-pocket cost?
Background check, E&O deposit, training fee, licensing assistance — what does it actually cost to get started?
7. What CRM and dialer do you provide, and is there a cost to me?
If the agency provides tools, get the details. If you are expected to pay for your own CRM and dialer, factor that into your net income calculation.
8. What carriers am I contracted with, and can I access them independently after I leave?
Some agencies control your carrier contracts. When you leave, you lose your contracts. Know this upfront.
9. What does your training program actually look like — and is it paid?
“Training provided” can mean a 10-year veteran teaching you or a 90-minute Zoom call. Get specifics on frequency, format, and compensation during training.
10. What is your agent turnover rate, and what is the average production of your agents in year two?
If 80% of agents leave in year one, that tells you something. Legitimate agencies will share these numbers.
11. Are there any non-compete or non-solicitation clauses in the contract?
Some agencies restrict who you can recruit or sell to after leaving. Understand the geographic and time scope of any restrictions.
12. What happens to my book of business if the agency closes or is acquired?
It happens. Know the contingency plan before you build years of renewals with an organization.
Before your next interview, run the offer through our free Deal Analyzer to see your real projected net income. Then browse verified listings where all 12 of these questions are already answered upfront.