Many people interested in a sales or business career will find themselves considering life insurance sales. Recent data shows only 50% of Americans have life insurance coverage, which represents an enormous amount of opportunity within the industry.
What does a life insurance agent do?
Selling life insurance is a good career for many types of people. A licensed life insurance agent will use their knowledge of various life insurance platforms to help their clients find the right coverage plan based on factors such as health and financial status. Any individual that puts in some initial time to learn about life insurance carriers and policies will be able to find success as a life insurance agent.
While it will vary agent to agent, most people who view life insurance as a good career opportunity are drawn to being an independent contractor. This means that the agent is their own business, agreeing to terms with carriers and looking for clients. Most agents will spend parts of their week contacting potential clients to set appointments, and then the rest of their week going to these appointments to make a sale.
How to become a life insurance agent?
The only requirement to sell life insurance is a state-issued license, which is granted after an individual passes a license exam. Rules and regulation will vary state by state. No degree is required to take the exam or begin selling, though life insurance training is recommended for agents just getting started.
Insurance Marketing Organizations (IMOs) are businesses that help individuals become agents and aim to assist them in growing their business. With the right IMO, selling life insurance can be a great career opportunity.
Among other things, IMOs usually help agents study for their license, get contracted with carriers, and set up a compensation plan. Some IMOs will also offer agents contact information for individuals that have requested insurance, also referred to as leads. Choosing a quality IMO is an important step for a life insurance agent to find success.
Benefits to selling life insurance
Selling life insurance can be an incredibly fulfilling career. First and foremost, a life insurance policy is an important tool that families can use to protect themselves. One of the most rewarding parts of being a life insurance agent is being able to assist those in need by helping them find the right type of protection. These are policies can provide financial security to families during very vulnerable times.
Additionally, most life insurance agents make a living off of commission. At a higher-quality IMO, superior training and compensation levels have many life insurance agents earning over $100,000/year full-time and $50,000/year part-time. This is highly dependent on how much time an agent spends contacting clients, thus the importance of a sufficient lead program.
It is not uncommon for agents to reinvest their high earnings in order to build out their business, bringing in other agents and starting an agency.