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Being an insurance sales professional is just one of many paths to consider if you’re looking to establish a career in sales.
An insurance sales career can pay well while offering a measure of security for candidates who’ve worked toward having the right qualifications, background, and temperament for the job.
If you’re browsing insurance jobs and wondering how to become an insurance agent, there are specific steps you can take to boost your hireability.
Many employers that hire for insurance sales jobs look for a set number of qualifications that often (but not always) include education, experience, and, for candidates just starting out, trainability.
Here are a few factors to consider if you’re starting an insurance sales career.
How to Become an Insurance Sales Agent
A high school diploma is the minimum education requirement in most cases, though many employers give preference to candidates with an associate’s or bachelor’s degree, especially in fields like business or finance.
Generally, you’ll also need to be licensed to sell insurance in the state where you work, based on your chosen specialty or “line of authority.” Enrolling in pre-licensing courses while you complete your education can help you get your foot in the door. For more information, check with organizations like the National Insurance Producer Registry, a national not-for-profit insurance licensing clearinghouse.
As somebody exploring an insurance sales career, you’ll need to present well, both in person and over the phone. That means being well-spoken, courteous, a good listener, and responsive in conversations. It helps to know what to expect in a job interview. Remember: you’re selling yourself first and foremost.
Employers will also try to suss out your knowledge of the industry. Be upfront if you’re just beginning on your insurance sales career path. If you have experience as an insurance sales agent, be prepared to talk about your background, your past sales successes, and salary expectations, including asking (preferably not too early in the interview process) what the employer’s top agents earn.
Types of Insurance Sales Jobs
Your targeted specialty area and insurance licensure can guide you as you explore how to become an insurance agent and the types of insurance sales jobs. Many insurance jobs fall under these general categories:
Life Insurance
Life insurance sales agents sell life insurance policies and annuities that pay beneficiaries when the policyholder dies. The pay is often on a straight commission, often at a high rate compared to other insurance sales jobs, in part because life insurance can be difficult to sell and prospective customers can be harder to find.
Property and Casualty Insurance
The role of property insurance agents involves helping customers protect property, including homes, vehicles, jewelry and other valuables. Casualty insurance specialists offer clients liability coverage against financial losses related to accidents involving their property, and includes auto, homeowner’s, and renter’s insurance. Property and casualty are usually combined into one general area of expertise.
Health and Long-Term Care Insurance
A health insurance sales agent works on behalf of health insurance companies, selling health-related products and services to consumers. By contrast, a health insurance broker works on behalf of consumers, assisting them in finding and enrolling in qualified healthcare plans. This category can also include agents who help clients find long-term disability insurance and coverage for assisted living care.
How to Find the Best Insurance Agent Job
Prepare Yourself to Become an Insurance Agent
Usually, a high school diploma is all you need. Still, many employers prefer candidates with a degree, especially in business or finance.
Then, you need to get a license in your state to sell insurance based on your specialty or what is called your “line of authority.” You can enroll in pre-licensing courses as you complete your education to help get your foot in the door.
A sales background could get you hired, but you still have to take the 25 to 50-hour course and pass the state-administered insurance licensing exam. Most insurance carriers have internal company training programs, so their salespeople learn about the products they sell.
Here are some factors to consider as you work to find the best insurance agent job.
Researching Companies
As you are putting together your resume, start taking the initiative to research different insurance companies. While many of them are financially sound and well established, it is essential that you get a sense of their corporate culture. It is that culture that determines if you will fit in the long term and be happy there. Working for the wrong insurance company can contribute to burning you out, which could haunt you for your entire career. Ideally, you’ll want to look for a well-known company with a good reputation with customers and other agents and high ratings with insurance rating agencies.
-Understanding Insurance Agent Job Descriptions and Duties
While there are several types of insurance, like auto and health insurance, the most money is earned by life insurance sales agents. These agents focus on helping families, businesses, employers, and others protect against financial losses when someone dies.
Your specialty and insurance licensure guides you as you explore becoming an insurance agent, and the insurance sales jobs open to you. Insurance jobs basically fall into these categories:
Life Insurance
Life insurance agents sell policies and annuities that pay the beneficiaries when policyholders die. The compensation is usually straight commission at a higher rate than other insurance sales because life insurance is difficult to sell, and customers are harder to find. Usually, life insurance agents receive between 30 to 90% of the first year’s policy premiums. Later, the agent receives only 3 to 10% of the annual premium in renewals or trailing commissions.
Property and Casualty Insurance
Property insurance agents help customers protect their property, like their homes, vehicles, jewelry, art, and other valuables. Casualty specialists offer liability coverage against any financial losses for accidents, including auto, homeowner, and renter insurance. Both property and casualty sales are usually combined as a general area of expertise.
Health and Long-Term Care Insurance
Health insurance agents work for health insurance companies. In contrast, health insurance brokers work for consumers to help them find and enroll in healthcare plans. This category includes agents who sell assisted living coverage and long-term disability insurance.
Starting Off as an Insurance Producer or Agent
“Insurance agent” is a term most often used within the insurance industry. Still, the term “insurance producer” is frequently the official title used for licensing by different states. Regardless of which term you use, the job has the same responsibilities.
The steps to becoming an insurance producer begin with your high school diploma and your 18th birthday. After that, here are the next steps:
1. Determine what type of insurance you prefer to sell.
Life Insurance – You will sell policies and annuities to provide for the beneficiary when the insured dies. Life insurance sales agents are known to have the highest earning potential. But it is also considered the most challenging career.
Health Insurance – You sell medical, disability, Medicare supplements, and policies for long-term care.
Property Insurance – Selling insurance policies for homeowners, commercial properties, and inland marine assets.
Casualty Insurance – Offering auto, crime coverage, workers compensation, and professional liability policies.
Surplus Line Insurance – You will sell coverage for unusual and unique situations with specific risks that are not covered by a standard insurance policy. These include situations like daycare insurance, or oil drilling rigs insurance, also special events like car races, state fairs, and outdoor amusement parks.
Variable Products Insurance – This is the sales of insurance products with the element of an investment. To sell variable products insurance, you will also need a securities license.
Personal Lines Insurance – Consumer policies for products like vehicle insurance, homeowners’ insurance, and renters’ insurance. Also, you will sell policies for boats, ATV’s, motorcycles, or snowmobiles only for individual consumers.
You don’t have to choose just one! You are free to choose more than one line of authority. Insurance agents regularly combine coverage lines, like property and casualty insurance.
2. Learn about your state’s pre-licensing requirements.
Some states do require that you complete a course with a number of hours of specific pre-licensing education for the different types of insurance. If an insurance company or brokerage hires you, they may sponsor you through this training.
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