Why choose insurance sales as a profession?
Selling insurance may not be at the top of the list when evaluating career options. Individuals might have a misguided judgment about being a protection specialist; be that as it may, a vocation as an authorized protection proficient merits a more intensive look.
Protection is a fundamental item
In the event that we stop to think, numerous significant things in life have protection, either as a necessity for them to occur, or as a helpful advantage for when they are accomplished. For instance, we can’t drive an engine vehicle, own a business, or get a home loan assuming that there is no proof that we have satisfactory protection inclusion. Having health care coverage to assist with the costs related with the appearance of your most memorable kid, or life coverage to assist with the memorial service expenses of a friend or family member can assist with facilitating the monetary pressure of these occasions. Since the vast majority will probably confront a few of these occasions in their day to day existence, obviously protection is a fundamental and continuous need.
Intentional and remunerating work
Selling protection gives compensating potential open doors on many levels, including the fulfillment of realizing that you are playing out the indispensable assistance of safeguarding families from monetary ruin. In that sense, protection experts are a piece of their clients’ lives in the most ideal circumstances and in the worse possible situation.
In addition to the satisfaction of helping others, a career in insurance also offers you the opportunity to earn what you’re worth. Compensation for insurance agents is often 100 percent commission based. According to the U.S. Bureau of Labor Statistics, the median salary for an insurance sales agent in 2019 was $50,940.1 In the long run; agents are also compensated in the form of renewals, which is residual income from sales they earn the agent has performed in the past. In some companies, residual income continues as long as premiums are paid from those sales. Companies may also offer performance bonuses, contests, and incentive trips that make selling insurance an attractive choice.
How do I become an insurance agent?
You don’t need a college degree to become an insurance agent; the basic educational level is usually a high school diploma or equivalent. What states do require is that insurance agents be licensed, and licensing requirements vary by state. You may need multiple licenses if you plan to sell multiple types of insurance products. For example, separate licenses are required to sell auto insurance and home insurance, life insurance, and health insurance. If you relocate or plan to sell in multiple states, you must meet the licensing requirements for each state and insurance product.
Why do I need a license?
The insurance industry is heavily regulated by the states in which it operates. Being licensed demonstrates that you have a basic understanding of products and regulations and builds consumer confidence. The state license also protects consumers by allowing the state to monitor the activities of agents. You can go through the process of acquiring a license on your own, before you are hired by an insurer, or you can start the process after you have met with the insurer you will be representing.
What are the usual requirements to become a licensed insurance agent?
Many states require you to take a state-approved preparatory course to give yourself the best chance of passing your state exam the first time. Even if your state doesn’t require it, it may be a good idea to do so, since licensing exams can be difficult. Tests in all states are given at professional testing centers, have a time limit, and do not allow books or other study materials during testing.
Each state dictates when you apply for your license, whether before or after you pass the exam, so it’s important to check the steps to get licensed in your state. All states require some type of background check and may also require fingerprints.
To maintain your license, states require that you complete periodic continuing education requirements to update your knowledge and learn about new laws affecting the insurance industry. Continuing education requirements vary by state. You may also need to renew your license(s) periodically.
The need for licensed insurance sales agents is projected to grow 10 percent from 2018 to 2028, faster than the average for all professions. Many customers do their own research and buy insurance online, but agents will still be needed to help customers understand their options and choose a policy that’s right for them.
