The recruiter says you can earn $120,000 in year one. The job posting says “unlimited earning potential.” But what will you actually take home after leads, chargebacks, and fees?
Here is the formula to calculate your real net income from any life insurance job offer — before you sign anything.
Step 1: Calculate Your Monthly Gross
Formula: Weekly Premium × Commission Rate × 4.33 weeks
Example: If you write $4,000 in weekly premium at a 115% commission rate: $4,000 × 1.15 × 4.33 = $19,918/month gross
Be honest about your weekly premium projection. New agents typically write $2,000–$3,000 in their first 90 days while experienced agents average $4,000–$8,000.
Step 2: Subtract Your Lead Costs
Formula: Lead Cost per Lead × Leads per Week × 4.33
Example: 20 leads/week at $28/lead: $28 × 20 × 4.33 = $2,425/month in lead costs
This is the number agencies love to leave out of their pitch. Direct mail leads for final expense typically run $25–$50 per lead. Live transfers run $50–$150.
Step 3: Estimate Chargeback Exposure
Industry average chargeback rates run 10–25% of placed premium in year one. A conservative estimate for a new agent: $800–$1,500/month.
Ask the agency for their chargeback policy and typical agent chargeback rate. If they refuse, that is a red flag.
Step 4: Subtract All Other Costs
CRM software, dialer access, E&O insurance, licensing fees, continuing education — add up every cost the agency does not cover. For most agents this is $200–$600/month.
Step 5: Your Real Net Income
Gross − Lead Costs − Chargeback Estimate − Overhead = Real Net Monthly Income
Using the example above: $19,918 − $2,425 − $1,200 − $300 = $15,993/month — quite different from what you would estimate from gross commission alone.
Do This Automatically
You do not have to do this math manually. Our free Deal Analyzer calculates your real net income in real time as you adjust commission rate, lead cost, weekly premium, close rate, and chargebacks. Run any offer through it before you decide.
Then browse our listings — every opportunity shows all 22 compensation fields upfront, so you can run this calculation before you ever talk to a recruiter.