If you are planning a career as a life insurance agent, you’re definitely headed for a potentially lucrative career. Not many jobs offer inexperienced professionals to make good income within the first year. In fact, it’s not unheard of for insurance agents to earn more than $100,000 during the first year of their sales. You can get started with free life insurance agent training, and once you pass the licensing exam, you’re good to go!
Life Insurance Agent Career Overview
While you can make money selling different kinds of insurance (property insurance, health insurance etc.), the highest bucks are made in life insurance. Agents selling these financial products help individuals, families and organizations protect against financial loss in case of death.
With this profession, you can either be a ‘captive’ or ‘non-captive’ agent, which means you either sell insurance from one company or from multiple careers. The workload and strategies for success in both cases are the same, namely that most of you time will be spent marketing and finding you need new or additional insurance coverage, providing quotes, and hopefully getting them to buy.
As a life insurance agent, you can expect to earn up to 90% of the total premium amount paid by the client in the first year. Moreover, you may earn up to 10% of ‘renewals’ or ‘trailing commissions’.
Pitfalls of Being an Insurance Agent
While tremendous rewards await the insurance agent, there are costs as well. Do remember that selling insurance is one of the toughest jobs out rather with a high degree of burnout and turnover. For one thing, you have to hear a lot more ‘no’ than yes, which means this isn’t a career for the light-hearted. Not to mention, people have a negative perception about insurance agents. If you can withstand these challenges, selling life insurance offers a good paycheck and a lot of flexibility.
As already mentioned, selling life insurance is not for the faint of heart. In fact, thick skin is far more important than any education or experience you may possess. You must love seeking new contacts, meeting new people, arguing your case, experience the rush of making the sale, and be prepared for rejection. Which means being soft-spoken or a person who avoids conflict isn’t best suited for the job.
Having said that, you do need to qualify for the job. Luckily, being a life insurance agent doesn’t require you to have a graduate degree (though this is preferred). And since most of the training is provided on-the-job, you can apply for most jobs even without prior experience.
Along with tenacity, you also require state licensing. This required passing and exam, and taking classes for up to 50 hours. You can take life insurance agent training free and take online classes. This provides flexibility as you get started with your career.
Just remember to check your employer’s rating and complaint history before applying, as this severely impacts your success as an insurance agent.