Why So Many Insurance Agents Fail (And What You Should Know Before You Start)

Let’s be real: being an insurance agent is tough. Roughly 80-90% of new agents fail within their first year. And while it’s easy to romanticize the flexibility, the “be your own boss” energy, and the uncapped income potential… the reality is a whole lot messier.

So why do so many insurance agents throw in the towel? Here’s a brutally honest breakdown.

1. You’re Selling Something Nobody Likes

Let’s also take a second to acknowledge something bigger: sales is hard—period. Whether you’re selling solar panels, cars, or SaaS software, sales takes serious grit. And now, with most interactions happening virtually, it’s even tougher. You don’t get that natural face-to-face connection, those casual rapport-building moments, or even a simple handshake. Trying to sell a product people already dislike, over Zoom or text, with a million distractions pulling your client away? That’s next-level difficult.

Health insurance isn’t exactly the hot product of the year. No one’s bragging about their bronze-tier ACA plan at a dinner party. Most people in the U.S. dislike (if not outright hate) the healthcare system. It’s confusing, expensive, full of red tape—and when clients do need to use it, it rarely feels like it works the way it should.

So as an agent, you’re tasked with selling a product that nobody wants to talk about but everyone needs. That’s not easy. It takes real skill to break through the noise, build trust, and get someone to enroll in a plan they might already be skeptical of.

2. The Capital Problem

Starting any business takes money, and insurance is no different. Many agents jump into the field thinking it’s a low-cost opportunity (and sure, the licensing is affordable). But building a book of business? That takes time, tools, marketing dollars, software subscriptions, and in many cases, several months before any real income starts rolling in.

Meanwhile, life doesn’t pause—rent, groceries, and phone bills don’t wait. This financial squeeze is one of the biggest reasons new agents flame out.

To make it worse, a lot of agents start part-time while working another job. While admirable, it’s also a major challenge. Insurance sales take time, energy, and consistency. And if you’re trying to squeeze that in after a 9-to-5, your chances of success drop significantly.

3. Selling, Selling, Selling (But Forgetting Everything Else)

Some agents fall into the trap of always chasing the next sale—and never looking back. They think the only way to grow is to keep enrolling new clients and racking up volume. But here’s the thing: your current book is full of untapped opportunity.

If you’re not:

• Pulling referrals

• Rewriting outdated policies

• Checking for expiring plans

• Selling ancillary products (like dental, vision, life, etc.)

• Following up to retain clients long-term

…you’re running on a treadmill. You’re working hard, but you’re not going anywhere. Growth doesn’t come from just stacking new clients—it comes from maintaining and maximizing the ones you already have.

4. The Low Barrier to Entry Illusion

Anyone can get licensed, right? And that’s part of the problem. Because it’s so easy to enter the field, people assume it’ll be easy to succeed too. But once you're in the trenches, you realize this job takes serious hustle, patience, and resilience.

You need to:

• Learn how to handle rejections (you’ll get a lot)

• Be comfortable with technical platforms and compliance

• Educate people on confusing healthcare terms

• Manage your own time, pipeline, and finances

This isn’t an easy-breezy gig. It’s a grind. And the ones who make it? They’re the ones who embrace that reality instead of fighting it.

5. Lack of Mentorship & Training

A lot of new agents don’t have the right support system. Maybe they sign up under an upline that promised the world but delivered nothing. Or they get tossed a login to HealthSherpa and told to “go figure it out.”

Insurance is hard enough on its own. Trying to build a business without guidance, feedback, or real-world examples makes it almost impossible. Having a mentor or being part of a community that shares insights and support can be a game-changer.

6. Treating It Like a Real Job (Because It Is)

Here’s the number one issue we see over and over again with the hundreds of agents we’ve worked with: they don’t treat this like a real job. You’ll find agents grocery shopping at 1PM on a Tuesday, hitting the gym whenever the mood strikes, or randomly checking out for a few hours in the middle of the day—because, hey, they’re their own boss, right?

But here’s the thing: the most successful agents? They’re glued to their desk. They show up every day, rain or shine, for 8–10 hours like clockwork. They treat their desk like a time clock and this business like a job where

if you don’t show up, you’re fired.

If you wouldn’t skip half your shifts at a regular job, why do it here? Discipline is what separates the part-timers from the full-timers—and the successful from the burned out.

7. Burnout Is Real

Let’s not sugarcoat it—insurance sales can be mentally exhausting. You’re constantly solving other people’s problems, working irregular hours, fielding late-night questions, and handling emotional conversations about money and healthcare. That wears on you.

Without boundaries, structure, and time to recharge, burnout creeps in fast. And once it does, motivation tanks, productivity drops, and many agents just… vanish.

Final Thoughts: It’s Hard, But It’s Worth It (If You Stick With It)

Insurance sales is one of the hardest things you can do—but also one of the most rewarding if you play the long game. You get to help people protect their health, their families, and their future. You build a residual income stream that compounds year after year. You create a business that’s truly yours.

But you can’t coast. You’ve got to show up, stay consistent, keep learning, and—most importantly—build systems that help you grow smart, not just fast.

Tools like PolicySync help agents do exactly that. It helps you track where your business is strong, where you’re losing ground, and where you can grow smarter using your own data.

If you’re in it for the long haul, arm yourself with the right mindset—and the right tools.

Want to learn more? Check out www.policy-sync.com and take control of your book today.