If you are considering a long-term career that will allow you to make a difference in someone’s life, then becoming a life insurance agent may be for you. Life insurance can be an important part of your financial future and also the future of those around you. Life insurance agents have the opportunity to take on many different roles in their careers from marketing, sales, customer service, and more. In this article, we’ll go over how to become a life insurance agent so that when deciding if this is the right move for you, all aspects will be taken into consideration!
What Does an Insurance Agent Do?
Life insurance agents typically hold a bachelor’s degree in business, finance, or marketing. They also spend time learning about life insurance and how it is sold today, with most studying at their state’s licensed producer schools before getting started. An insurance agent has a lot to do with the success of their career and the agency they work for. They help lead training sessions, write proposals, develop marketing strategies, maintain client relationships, conduct presentations with clients on life insurance products, and more! In most cases, agents can work from home or in an office environment, depending on their preference and the agency they work for.
Obtaining Licensure as a Life Insurance Agent
Your state’s Department of Insurance will be able to supply you with all the information you need on becoming a life insurance agent. In order to apply for any type of license, applicants must first pass an examination that tests their knowledge and skills in life insurance, variable life insurance, and fixed annuities. To pass, you should attempt the Georgia life and health insurance exam questions multiple times before the exam day. Applicants must also agree to abide by their state’s code of ethics and standards of practice. These codes can vary by state, but most contain similar provisions, such as not allowing agents to provide any type of insurance without first obtaining a license and then agreeing that they’ll only sell policies that meet or exceed their state’s requirements.
Types of Insurance Agents
Within the life insurance industry, there are different roles and responsibilities an agent can take on. Here we go over a few of these types:
Individual Life Agents
Life agents work with specific individuals and their families to help protect their financial future and determine how much life insurance is needed for each person. It’s important for an individual life agent to build a strong relationship with their client, so they understand the needs of each individual and family.
Group Life Insurance Agents
These agents work for large companies such as banks, hospitals, state governments, and more to help them offer affordable life insurance plans to their employees. Group life agents typically work in an office building or out in the field at events where their clients and potential clients are in attendance.
Broker – As a broker, you research and locate potential clients who may benefit from the products, services, and life insurance solutions available in the market today. The majority of brokers work on commission to earn money, but some also receive one-time bonuses for bringing on new customers.
Insurance Agent Requirements
Becoming a life insurance agent isn’t as easy as putting on business card print-outs. You’ll need to do your research and know what you’re getting into before taking the plunge. There are many requirements that vary depending on what state you reside in, but generally speaking, there are some basics every applicant will need to meet.
Some companies will require that you’re current on your mortgage or rent, but it’s best if you’ve never had any bankruptcies or foreclosures in the past two years. You should also be in good physical and mental health since you’ll need to pass a drug screening. State licensing is also necessary before an individual can become a life insurance agent.
Life Insurance Agent Salary
Life insurance agents, especially those with experience and a good reputation in the industry, can make a very comfortable living. In fact, many insurance agencies hire independent contractors to work from home, which means you’ll be your own boss! People who want to become life insurance agents should keep in mind that this isn’t an overnight career – it takes time and dedication to build a successful life insurance business. On average, new agents can expect to start around $30,000 annually and those with experience can see their salary increase above $100,000 per year.
Earn a Bachelor’s Degree
Because having a successful career as a life insurance agent is about more than knowing the basics of how insurance works, many companies will require that applicants hold at least a bachelor’s degree in business, economics, or finance. Earning such a degree can help agents become comfortable with selling and presenting their clients with the best possible options based on their specific needs. Holding an advanced degree can also reap more benefits and increase earning potential.
Look for Jobs in Specialty Insurance Agencies
Insurance companies usually seek out people with experience or training in other types of insurance to help them sell the products they offer. This type of specialty training can be beneficial because state laws require life insurance agents working for larger companies to receive training in annuities and other related types of insurance. Individuals with experience in or knowledge about one or more of these areas will be able to increase their chances of success as a life insurance agent.
When looking for jobs, it’s also beneficial to look for insurance agencies that offer training. This way, new agents can work with experienced individuals who are more than willing to share their knowledge of how to sell these types of policies successfully.
It may not be easy work, but it’s worth the sacrifice if you’re looking for a career that will allow you to make a difference in someone’s life. Becoming a life insurance agent is difficult but not impossible. Alongside all of these tips, remember to find a mentor who can guide and teach you.