An insurance sales career can be a lucrative means of income. Sales agents in the U.S have a mean annual wage of $33.22 per hour or $69,100 per year.
When working as an agent you have the ability to expand your income depending on the hours you work each week. The key to success is knowing both how to sell insurance and how to start an insurance sales career that is successful.
Whether you are looking to begin a new career or a seasoned insurance salesperson wanting to build your client base, it never hurts to review the top reasons why a career in insurance sales is a good choice.
If you don’t like being locked down to the set hours of a 9-5 career, insurance has the flexibility you will thrive under. Whether working as a captive agent or independent agent, you can vary your appointment times to fit your schedule.
Being flexible to your potential client’s scheduling needs aids in building your career as an accomodating agent. You can work long hours a few days a week, or a few hours every day of the week.
Just select what works, whether evenings, weekends, mornings, or any other combination you like.
If you work as an independent agent, you have the flexibility not only in work hours but also in the products you offer. This provides the opportunity to expand your client base.
What Is a Captive Insurance Agent?
A captive insurance agent contracts to work for a specific insurance company. This ties them into selling only insurance that the company offers.
In exchange for selling only that company’s policies, the provider furnishes the agent with leads and provides help. They will likely help set the agent up in an office and have administrative staff that assists in processing paperwork.
When anyone calls the provider needing insurance, the company refers the potential client to one of their agents. Working only for one company, you may receive both a salary and a commission.
What Is an Independent Insurance Agent?
An independent agent does not contract with a single company. They sell policies from several insurance companies.
This allows the agent to offer their client a wide range of policy options, expanding their client satisfaction level.
An independent agent does not have the support and referrals they receive when working exclusively for one provider. As an independent agent, you are responsible for obtaining your own leads.
Your income comes strictly from commissions. This is not as difficult as it sounds when you obtain training from a company such as the Independent Life Insurance Agent Association.
The ILIAA provides insurance sales career advice and training. This includes how to write contracts, release policies, launch your career, and more.
Unlimited Earning Potential
Millennials are the most at-risk generation, with only 10% having the life insurance coverage they need.
Even with their poor insurance coverage, 81% feel more financially secure than the general population. This is a false sense of security because 44% do not have financial preparations in place to deal with the death of the main breadwinner.
This provides you with an untapped clientele when you move into a career selling insurance.
Millennials are now the largest living adult generation in the U.S. This group includes people between 23-38 years of age.
As of 2019, there were 72.1 million millennials in residence. This number continues to grow because of new immigrants entering the country.
You have unlimited earning potential with this group of underinsured clients.
When you learn the insurance sales business and build your client base, your clients will know, trust, and recommend you as an agent. By servicing repeat clients and expanding your client base, you can increase your annual income.
Easy to Obtain License
Obtaining the qualifications necessary to begin a career in insurance sales only takes a few weeks or months to accomplish. Prior experience is not a requirement to begin your career, so entry is simple after you obtain your license.
Every state requires insurance agents to become licensed prior to selling insurance. The requirements vary by state.
Each insurance agent or broker must be licensed in every state where they sell insurance.
The specific steps to obtaining a license depend on the “line of authority” (type of insurance) you plan to sell. You need a separate license for each “line of authority.”
Many states require separate pre-licensing courses and exams for each type. For example:
1) Arkansas does not require any fingerprinting or background check. The applicant must furnish two forms of identification at the time of their exam. They must complete 20 hours of pre-exam training and pass an exam before applying for a license. This is all mandated by the Arkansas Insurance Department.
2) Idaho requires fingerprinting, which can be done at the exam test location. There is no requirement for pre-exam training. Licensing is mandated by the Idaho Insurance Code and the Idaho Department of Insurance.
3) Michigan does not require fingerprinting, but you must furnish two types of identification at the exam. The state requires 20 hours of pre-exam training. Insurance licensing is overseen by the Department of Insurance and Financial Services and General Insurance Laws, MCL §550.01-550.2009.
4) Oklahoma does not require any fingerprinting, no pre-exam training hours, but does have a licensing exam. Requirements are governed by the Oklahoma Insurance Code and the Division of Financial Regulation.
The variety found in these four states shows why it is important to check the requirements of your state to determine what is necessary to become a fully licensed insurance agent.
As an insurance agent, you are in a dignified area of sales. You are not selling a product, you are selling financial security.
Life insurance is a product that will have a positive impact on the life of that person’s loved ones at the time of their death.
Your work provides personal satisfaction. You will know that through your guidance your client is purchasing a policy that meets their needs and provides financial security at a time of emotional upheaval.
There are a wide variety of life insurance policy types.
You will be able to discuss whether your client needs term, whole life, or universal insurance. Perhaps joint life, no-medical exam, accidental death, or final expense insurance will benefit them.
Once you build a relationship with your client, they will call you if they need to add on to their existing policies. By knowing their needs you will be in a position to offer suggestions of additional policies that may fit their budget and lifestyle.
Variety of Work
If you despise monotonous work, insurance sales is the perfect career choice for you. Every client is different, and every client’s needs are different.
You are meeting new people every week and working to help them obtain financial security for their loved ones.
In addition to the actual sales process, you will be working to grow your business through mail marketing, social media platforms, email marketing, and following up with contacts through email, telephone, and more.
You will want to stay up-to-date on the latest products being offered, industry trends, and any changes in government regulations.
One of the best ways to stay current on your training and fresh on your presentation techniques is through membership in an insurance association. Refresher courses, online support, and mentorship help you excel in your career.
Insurance has been in existence for centuries and will continue to exist long into the future. During recessions, insurance sales remain one of the most stable careers you can have.
People need insurance to provide themselves and their families with financial security, especially when the rest of the economy is unstable.
The fact is, outside the financial services industry a career in life insurance sales is the most lucrative for a newcomer. New agents that work hard can earn over $100,000 their first year.
This is because a life insurance agent will receive between 30% to 90% of the initial payment of the policy in the first year. They receive between 3% to 10% of the premium payment each year thereafter.
As you build your client base, you will be gaining high commissions from new sales, while maintaining a steady income from policy renewals.
People aging who begin thinking about life insurance needs combine with policy renewal clients to provide you with job security through the mountains and valleys of the economy.
Begin Your Insurance Sales Career Today
If you are ready to begin an insurance sales career and enjoy the benefits of setting your own hours, interesting days meeting new people, and unlimited learning potential, your next call should be to Independent Life Insurance Agent Association.
We provide training, coaching, mentorship, guidance, and support to anyone interested in becoming an insurance agent or advancing their career. Whether you are looking to break into a life insurance sales career or already have a license and need to improve closing ratios, we can help.
Learn about becoming a member of the Independent Life Insurance Agent Association and advance your career today!