Becoming an Independent Insurance Agent
Becoming an independent insurance agent usually means you sell policies offered by multiple companies. Agents must be familiar with the types of policies they are selling. This will help customers/clients/prospects determine which policy best suits their needs. Agents do not necessarily need to be great sales people. If they are not strong in sales they must have strengths in other areas such as service, consulting or marketing. Insurance agents may sell one of many different types of insurance from various companies, including life, health, automobile, and liability insurance.
A captive agent is one who work for an insurance carrier sell policies only from that agency or company, while independent agents sell policies from a variety of insurance providers.
What kind of training do you need to become an insurance agent?
Insurance agents can come from all types of educational backgrounds. In many cases, agents can sell insurance with only a high school diploma. Many agents in the field have very high education levels. However, some agents who work directly for insurance carriers will need to meet minimum qualifications such as having a bachelors degree.
Agents must have a valid insurance license in the state they sell. Licensing can be specific to the products they are selling. All states require agents to pass exam as well as pay a fee in order to have an insurance license.
New insurance agents working for a company may receive on the job training. In some cases they may also be set up with a mentor that will work with them in the field.
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Are there any certification or licensing requirements?
Each state has different licensure requirements for insurance agents. The type of policies you are offering to clients will dictate the requirements you must meet. In general, to obtain a license to sell insurance, one must pay a fee, complete a pre-licensing training course (in most states) and pass a licensing examination. Some states also require license applicants to be sponsored by an employer, agency or agent.
Agent licenses must be renewed periodically every 2 years in most states by paying a fee and meeting the CE requirements for that state.
How long does it take to become an insurance agent?
While some types of insurance have major learning curves (such as Medicare) an agent can sell as soon as they have their insurance license and are contracted to sell. Some products require additional training however.
Becoming an Independent Insurance Agent
What does an insurance agent earn?
The median yearly pay for insurance agents in the United States was about $54,000 in 2016. The lowest ten percent of earners in this field made less than $27,000 and the top ten percent earned more than $130,000 that year.
What are the job prospects?
It depends on the type of agent. The insurance industry in general is growing by about 8% a year. The number corporate sales agents has declined slightly in the last 5 years while the number of independent agents has grown slightly.
How can I learn more about becoming an insurance agent?
There are a number of national associations for insurance agents, such as Independent Insurance Agents and Brokers of America, Inc. and the National Association of Professional Insurance Agents. There are also a number of national marketing organizations and field marketing organizations that will help agents contract. Our organization works with broker on all product types and are happy to answer any questions.
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