How to Become an Insurance Agent

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Only a few industries outside the financial service industry offer inexperienced individuals to make huge income in their first year of working in that industry. And within this industry, there are a couple of careers that offer beginners the opportunity to earn more than or at least as much as life insurance agents right off the bat. 

As a matter of fact, hard-working insurance agents can earn at least $100,000 in their initial year of making sales. But success in this industry does not come without a cost. It is a very challenging field, and a lot of participants get tired and burn out sooner than later. Agents say no for an answer like candies, and they hear it more than they hear “yes.” 

And it is not unusual for these rejections to be carried out with a significant amount of proverbial door shuts and obscenities. Not only have that, a lot of individuals held these professionals in low regard. Some individual event identifies them to be glorified frauds or con artists. But for people who can stomach these rejections and embarrassments, the pay and flexibility of being a professional agent can be the best decision you make.

To know how to cope up with the constant job or application rejection, click here to find out more.

The insurance industry: An overview

While there are various types of insurance (ranging from health to auto securities), the most lucrative job in this field is to sell life insurance plans. These professionals focus on this end of the market to help employers, businesses, families, and other parties to protect them from financial losses when something happens to them or their family members. 

Professionals who sell these kinds of premiums are either non-captive agents representing various securities carriers or captive representatives who sell premiums from one firm. Either way, the usual insurance liaison is going to spend most of their time taking part in various marketing activities to identify individuals who might need additional or new coverage, providing them with multiple quotes from firms they represent, as well as persuading clients to sign new contracts. 

Usually, these professionals receive anywhere from 20% to 90% of the amount paid for policies by the customer in the first year. They may receive between 3% and 10% of the premium’s amount every time it is renewed in succeeding years. It is called trailing ore renewals. For more info about insurance agents, check out sites like Beamtenberater for details.

How to qualify to be one?

AS mentioned above, professional agents are not a job or profession for the faint of heart or thin-skinned individuals. As a matter of fact, more than any factors, including experience and education, these professionals need to possess a non-wavering spirit. They need to be individuals who love the rush and the thrill of the hunt of a sale. 

They need to see rejection as a good stepping stone to their eventual success. A career in sales is not ideal for people who view themselves as soft-spoken, afraid of conflict, and introvert. A lot of life securities firms have no full education requirements to be an agent.

How to become a licensed Insurance agent in 5 steps?

In comparison, most firms prefer college or university graduates. This rule is constantly neglected in favor of the “perfect” candidates. Past experiences in this industry have not been required for most medium or large carriers have programs to help train their sales representative about the product they are going to sell. 

While it may be easy for a relentless and persevering go-getter to get a job at reputable firms, there is one non-negotiable problem that stands between potential agents and their share or commissions: state or federal licensing. Agents are required to get a license by states or individual states in which they will be selling their products. 

It requires passing state-administered licensure examinations and taking licensing courses that usually run at least 20 hours.

Getting hired

If a person feels like a career in insurance sales is for them, there are some important steps they need to take to find their first job. First, they will need to put a resume that highlights their entrepreneurial spirit. They will want to include things that show them taking the initiative to device plans to make things possible, whether taking businesses or starting their own business to the next level. 

These professionals need to have the ability to be a self-starter, as well as self-driven. Resumes that show the history of their behavior will help them get their footing in this industry. Once people have got their resumes polished, they will want to start looking for positions and applying. People mustn’t feel pressed to accept the first position they find because getting employed by the wrong firm can both burn them out and haunt them for the rest of their careers. 

Ideally, individuals want to work for well-known firms with reputable reputations among agents, rating agencies, and consumers. Maybe the best place to start when it comes to deciding where to send resume, is the check-out securities firm rating sites. From there, individuals will be able to build a list of firms that have A ratings or higher in the place they are planning to work. These businesses will usually offer the most secured products at a reasonable price, emphasizing keeping and compensating quality employees.

People who want to work in this industry can expect to struggle financially for a couple of months until their first sales commission starts rolling in. While some firms offer salaries to keep beginners from starving, it has become rarer. A lot of professionals are now lucky to be paid for one to two months while in training before being promoted to a commission-only position.