Becoming a life insurance agent

Only a few industries, outside the financial services industry, offer opportunities for inexperienced professionals to earn a significant income within the first year of their employment. A life and insurance agent is one of the few professions that offer new employees the chance to make a good income. A hardworking agent in insurance can make more than $100,000 in their first year.

However, being an insurance agent is not without its challenges. It’s a difficult field, and most participants quit sooner than they should. Insurance agents often hear “no” more than the word “yes” It’s not unusual for insurance agents to hear the word “no”, with lots of obscenities, and even the proverbial door in their faces. Many people view insurance agents with low regard. Some even consider them to be con artists. For those who are able to accept rejection, life insurance agents can offer great income and flexibility.

Overview of the Insurance Field

There are many types of insurance, including auto insurance and health insurance. However, the most lucrative job in the insurance industry is selling life insurance. This is the most lucrative area of the insurance industry. Agents who focus on this market can help families, employers, employees, and others to protect against financial loss if someone dies.

This type of insurance agent is either a “captive”, which means that they only sell insurance from one company, or a “non-captive,” meaning they represent multiple insurance companies. The typical insurance agent will spend most of their time marketing to find people who may need additional insurance coverage. They also provide them with quotes from various companies and convince them to sign the contract.

A life insurance agent typically receives 30% to 90% of the amount paid by a client for a policy (also called the premium). This is usually in the first year. The agent might receive anywhere from 3%-10% of the premium in later years. These are also called “renewals” and ” trailing Commissions.

Example of a commission for insurance sales

Ryan is sold by Uni, the insurance agent, a whole life insurance policy that covers Ryan for the rest of their life (assuming they continue making their premium payments). Uni’s insurance company charges a 90%/5% commission for whole-life policies. This means that the selling agent gets 90% of the premium and 5% for future renewals.

Ryan pays $100 per month or $1,200 annually. Uni will earn $1,080 on the sale of this life insurance policy ($1,200x 90%) in the first year. As long as Ryan continues paying the premiums ($1,200x 5%), Uni will earn $60 per renewal. A first-year agent could earn $50,000 to $100,000 selling policies per week at this level of commitment.

Life insurance agent qualifications

A life insurance agent is not for the faint-hearted or thin-skinned. Life insurance agents need to be able to fight for their clients. This is more than any other factor. Life insurance agents must love the thrill of selling and the rush of closing a sale. They should also see failure as a step toward success. If you are shy, introverted, or afraid to deal with conflict, a career as a life insurance sales representative is not for you.

Agents are not required to have any formal education in order to work for life insurance companies. Although many prefer college graduates, the majority of life insurance companies do not require any formal education to become agents. This is because they are always looking for the “right” candidates. It is not necessary to have previous experience in the insurance business. Larger insurance companies often offer training programs that will help their salespeople learn about the products they are selling.

Although it might seem easy to be a determined go-getter and get hired by a reputable company, state licensing is a non-negotiable obstacle that could prevent potential agents from getting their commissions. The state in which the agent will be selling insurance is where they are licensed. The licensing process usually involves passing a state-administered licensing test and taking a class that usually lasts 20-50 hours.

How to get hired to sell insurance

There are several steps you can take to get your first job in life insurance sales if you feel that this is the right career for you. Your entrepreneurial spirit will be highlighted in your resume. It is important to highlight any activity that shows your ability to take initiative and make things happen. Life insurance agents must be motivated and able to work independently. A track record of this kind of behavior on your resume will help you get in the door.

After you have your resume ready, you can start looking for positions and applying. You shouldn’t feel pressured into accepting the first job that is offered. Working for the wrong company could lead to burnout and ruin your career. You want to work for a company that is well-respected among consumers, agents, and rating agencies.

The best place to begin when deciding where you want to apply for insurance is to visit the Am Best, Moody’s, or Standard & Poor’s rating websites. You can then build a list of companies that have a rating of “A” in your state. These companies are likely to offer the best products at affordable prices and will be more careful about compensating or keeping quality agents.

Make sure to follow up

Once you have compiled this list, start looking at each company. Because of the high turnover rate among insurance agents, many companies post job listings by geographic area. This makes them easy to find. If you are looking for a company that suits your personality, you can apply for the job and follow the instructions provided by the company.

You should keep calling the company on a weekly basis to get an answer. A lot of insurance company recruiters won’t interview potential agents if they don’t make a follow-up call. This is considered a strong indicator of a potential agent’s perseverance. Continue to convey your entrepreneurial spirit and “never say quit” attitude during your interview. Most managers will hire based on these traits alone.

If you are lucky enough to get the job, your first 12 months will be spent handing out business cards and making lots of phone calls. Your sales manager will remind you that the only purpose of your life is to find clients. They’ll care more about how many contacts you make each week than your knowledge of their product line.

You should expect financial difficulties for the first few months before your first sales commissions begin rolling in. Some companies offer a salary to help newbies avoid being hungry, but this is less common. Agents are often able to receive compensation for up to two months of training, before being placed on a commission-only basis.

Here are some warnings

The life insurance market offers great rewards for those who work hard and are willing to endure rejection. However, there are two potential pitfalls to avoid. You will be expected to promote your products to family and friends. Although it might seem appealing and a good idea to get you started in the business, it can also cause you to lose touch with those you care about.

You should also visit the website of your state’s insurance commissioner to review complaints against the companies you are interested in working for. You’ll find that insurance companies with lower ratings than “A” and those who sell insurance via a multilevel scheme have higher rates of complaints than larger, more established businesses.

If you accept a job at the wrong company, it can cause you to burn out and destroy your chances of a successful career. If you really want to work in life insurance sales, then take your time and wait until the right opportunity presents itself. This will increase your chances of success over the long term.

Updated: December 25, 2022 — 7:16 am

Leave a Reply

Your email address will not be published. Required fields are marked *