This line of work has a series of unique challenges, but it also comes with amazing rewards. First of all, you need to be able to understand why people need life insurance, from both a logical and an emotional point of view.
Second, you need marketing and sales skills, good communication skills, and the ability to make people understand you have their best interest in mind. You will work with all kinds of customers and beneficiaries, and you may end up discussing highly sensitive topics that require delicacy and diplomacy.
But if you like financial planning and feel you would do well in sales (or already have experience in the niche), selling life insurance is a rewarding career opportunity. It’s also a way to change careers even if you’re no longer in the young adult phase of your life.
So if you’re thinking about it, here are a few reasons why you becoming a life insurance agent is a good idea:
It’s Rather Easy to Start
Unlike most jobs in finance, life insurance agent jobs don’t have high educational requirements (other than a high school diploma).
You may also have to pass your state’s life insurance license exam, but it’s not that difficult. Plus, with the best insurance pre-licensing courses at your disposal, it will be a breeze.
Once you are a licensed life insurance agent, it’s easy to find a job since most companies are always hiring and the lack of prior experience in the field is not a deal breaker.
This happens because these jobs are commission-based with no guaranteed income so there’s no reason to limit hiring.
Potential for High Earnings
According to the U.S. Bureau of Labor Statistics, the median salary for insurance sales agents comes in at nearly $52,000 a year. Of course, the level of earnings differs starting with the type of insurance you sell and your portfolio of customers.
In the case of life insurance, you get to cash in a percentile when you sell it and you continue to cash in a commission each time the policy is renewed.
So, if your customers pay their monthly premiums, you will also get passive income (about 5% to 10%) each month. Now this doesn’t sound that bad, right?
Plus, if your company has a promotion system you may get a bigger commission if you manage to bring in more valuable customers.
Flexible Schedule
If you don’t like the rigidity of a 9-to-5 schedule, then life as an insurance sales agent may be a better fit. Since you are paid on commission, you can adjust your schedule as needed.
However, you also have to consider your customers’ schedules for various meetings. Plus, when you’re looking for new customers, you will have to accommodate your prospects’ needs.
The Challenges
Sadly, selling life insurance is a highly competitive field that has you competing against other agents and insurance companies. Plus, everyone understands that a prospect lost means lost commission, so no one is willing to step back.
Besides being a cut-throat world, working on commission can also mean there will be weeks of hard work without any financial rewards in sight (at least at first). It’s also quite difficult to break the ice and start building a portfolio.
Good leads are hard to come by even in the age of broadband internet, which is why agents have to do a lot of research. Plus, this is one of those industries where old-fashioned methods (cold-calling and door-knocking) still work.
However, you need to be perseverant and have a thick skin since not many people are that happy to see an insurance agent at their door.
Wrap Up
When you start your life as an insurance agent, it’s like you would start your own business. So there’s a lot you can learn from other entrepreneurs’ mistakes to avoid the main traps of the industry. Overall, the job is demanding and stressful, but if you have what it takes, it can be extremely rewarding as well.