Selling Life Insurance Part-Time: Is It Possible?

Selling life insurance part-time is a viable option for those seeking flexibility, extra income, and valuable experience in the insurance industry. It can be particularly attractive to those with an established career who want a side hustle that offers scheduling freedom. However, it is important to note that part-time insurance sales typically operate on a commission basis, resulting in variable income. To succeed, a part-time insurance agent must commit to a disciplined schedule, consistently generate leads, and develop strong sales skills. While it may take time to build a client base and gain mastery, the part-time approach offers a lower-risk way to transition into a new career.

Part-time insurance sales as a side hustle

Part-time insurance sales can be a great side hustle, offering flexibility, extra income, and valuable experience. However, it also comes with challenges, such as variable income and the need for strong time management skills. Here are some things to consider if you're thinking of becoming a part-time insurance agent:

Getting Started

To launch your career as a part-time insurance agent, you'll need to fulfil some requirements. These include completing the necessary education, which varies by state but typically requires at least a high school diploma, and obtaining an insurance license by passing an exam. Additionally, many states mandate that you have a sponsoring insurance company to vouch for you and provide additional training.

Choosing the Right Company

The insurance company you work with can significantly impact your earning potential. Consider factors such as the company's reputation and financial stability, the types of policies they offer, and the level of support they provide to part-time agents, including training, marketing materials, and administrative assistance.

Setting Up Your Business

If you prefer to work independently, you can set up your own insurance business. Start by creating a detailed business plan that outlines your goals, target market, and sales strategy. Invest in essential equipment, such as a computer with high-speed internet, a phone for client calls, and potentially a customer relationship management (CRM) system.

Understanding the Pros and Cons

Part-time insurance sales offer flexibility, allowing you to set your own hours and work remotely. It provides extra income, enhancing your financial stability. Additionally, you can gain valuable skills in sales, customer service, and financial planning, which are transferable across various career paths. However, there are also challenges. Managing your time between insurance sales and other commitments can be demanding. Moreover, as most part-time insurance sales operate on a commission basis, your income may vary depending on the number and types of policies sold.

Developing a Sales Strategy

To succeed in insurance sales, you need a well-thought-out sales strategy. Identify your target market and tailor your sales pitch to address their unique needs and concerns. Utilise social media and online platforms to reach a wider audience and build trust with potential clients by providing informative content and answering their questions.

Pros and cons of selling insurance part-time

Pros of selling insurance part-time

• Flexibility: Selling insurance part-time offers flexibility in terms of work hours and location. This makes it a good option for students, stay-at-home parents, or those seeking to supplement their full-time job or retirement income.
• Extra income: A part-time job in insurance sales can provide a substantial supplement to your regular income, helping with unexpected expenses or financial savings goals.
• Experience: Part-time insurance sales can enhance transferable skills in sales techniques, customer service, and financial planning.
• Test the waters: Working part-time allows you to test the insurance industry without fully committing and risking a stable income. It gives you the opportunity to decide if you like the work and determine the types of products and populations you prefer to work with.
• Diversification: As a licensed health and life agent, you can decide what types of insurance products you want to sell and diversify your portfolio.

Cons of selling insurance part-time

• Time management: Balancing part-time insurance sales with other commitments can be challenging. Meeting client expectations and sales targets while managing other duties may be demanding.
• Variable income: Part-time insurance sales typically operate on a commission basis, so your income may fluctuate based on sales performance.
• Unpredictable income: Since earnings depend on sales, it can be challenging to predict your income, and you may experience periods of financial uncertainty.
• High-pressure environment: Selling insurance can be stressful due to long work hours, constant pressure to meet quotas and targets, and a highly competitive nature, which can lead to stress and burnout.
• Limited resources: As a part-time agent, you may have limited access to company resources, training, mentorship, and support compared to full-time employees.

Steps to become a part-time insurance agent

Education and licensing

Firstly, you'll need to meet the educational requirements for becoming an insurance agent, which vary by state but typically include a high school diploma or equivalent. Then, you'll need to obtain your insurance license by passing an exam that tests your knowledge of insurance basics and state laws.

Sponsorship

Many states require you to have a sponsoring insurance company to obtain your license. This company will vouch for you and provide additional training and resources.

Plan and set up

Create a business plan that outlines your goals, target market, and sales strategy. Set up your workspace, whether that's at home or in a rented office space, and ensure you have the necessary equipment, such as a reliable computer and phone.

Choose a company or set up independently

If you decide to partner with an insurance company, research their reputation, financial stability, product offerings, and the support they provide for part-time agents. Alternatively, you can choose to set up your own business.

Develop a sales strategy

Understand your target market and develop a sales pitch that highlights the benefits of your insurance policies. Utilize social media and online platforms to reach a wider audience and build trust with potential clients.

Commit to a schedule

Selling insurance part-time requires a full-time mentality. Commit to a routine schedule and fill your time with prospects interested in what you're selling. Be prepared to work mornings, afternoons, evenings, and weekends to fit your clients' schedules.

Find a mentor

Seek guidance from an experienced insurance agent who has had success in the industry and can answer your questions, provide troubleshooting advice, and help you refine your sales pitch.

Generating leads as a part-time insurance agent

Yes, it is possible to sell life insurance part-time. Here are some strategies for generating leads as a part-time insurance agent:

Ask for Referrals

Even though referrals can be challenging to obtain when starting, they are an excellent way to find new clients. You can start by asking people who already know and trust you, such as friends, family, or former colleagues. Additionally, if a client decides to cancel their policy, remind them that you are available to help them whenever they need you. Creating a system to conduct exit surveys when clients leave can also provide valuable feedback for improvement.

Be Active in Your Community

Volunteering and participating in community activities can establish your reputation as a caring and committed member. You can also showcase your insurance expertise by advising local charities on their insurance purchases, hosting seminars for small business owners, taking part in area meetups or online forums, and offering to be a guest speaker for business groups. While your primary goal is to contribute to your community, these interactions can also generate insurance leads as people recognise your sincerity and expertise.

Utilise Social Media and Online Platforms

Social media and online platforms are powerful tools for marketing your insurance business. They allow you to reach a wider audience and engage with potential clients interactively. Share informative posts about insurance, answer client questions, and consider hosting live webinars or Q&As. You can also offer incentives for referrals through social media. Additionally, consider investing in social media management services to keep your business's social media profiles exciting and engaging for users.

Start a Referral Program

Implementing a referral program can be as simple as reminding your clients to keep you in mind if they know anyone who might need your services. You can also add incentives, such as discounts or gifts, to encourage referrals. Just be sure to check with your state insurance department first to ensure compliance with any regulations.

Network Effectively

Join relevant organisations, such as your chamber of commerce, alumni association, or local business groups. Attend networking events and meetup groups to connect with potential clients and build relationships. Getting active on social media can also help you expand your network and reach a wider audience.

Online Advertising

Having an online presence is crucial in today's digital age. Create a user-friendly website that showcases your value proposition, contact information, and engaging content. Invest in search engine optimisation (SEO) to improve your website's visibility in search engine results. Utilise pay-per-click (PPC) advertising on platforms like Google Ads and Facebook Ads to target your ideal audience. Additionally, consider banner ads on relevant websites to increase brand awareness.

Traditional Advertising

While online marketing is essential, traditional advertising methods can also be effective in reaching wider audiences. Consider advertising in local newspapers, Yellow Pages, or industry trade magazines. Radio advertisements can also be effective, especially if you can secure a slot on a popular local show. For visual advertising, television advertisements can be highly memorable and effective, although they may be more costly.

Events and Seminars

Organising or participating in events and seminars can be a powerful way to combine advertising and personal contact. Consider hosting free seminars on relevant insurance topics, but remember to focus on educating your audience rather than making it a sales pitch. Alternatively, host a more casual mixer event where people can ask you questions in a relaxed setting. These events can lead to private appointments and sales.

Local Sponsorship and Charities

Giving back to your community through local sponsorships or charitable events can positively impact public opinion about you or your agency. It demonstrates your commitment to corporate social responsibility and can help generate leads from grateful community members.

Direct Mail and Newsletters

Although direct mail campaigns can be expensive, they are still effective when done properly. Send out newsletters covering news and updates in the insurance industry or your agency to current and potential clients. This helps build your authority and adds value for your clients.

Remember that generating leads as a part-time insurance agent requires a combination of strategies and consistent effort. Choose the methods that best suit your target market and sales style, and don't be afraid to adapt and refine your approach as you learn what works best for your business.

Part-time insurance sales success stories

Part-time insurance sales can be a great way to earn extra income, gain valuable experience, or transition into retirement. While it can be challenging to balance sales targets with other commitments, the flexibility of a part-time schedule is advantageous for many. Here are some insights and success stories from those who have navigated the world of part-time insurance sales.

David Duford's Story

David Duford, in his article on the DIG Agency website, shares his experience as a part-time insurance agent. Back in 2011, he had a personal training business that was struggling financially. With the need for an additional income stream, he reluctantly entered the world of part-time insurance sales. Duford arranged his schedule to train clients on Mondays, Wednesdays, and Fridays, while dedicating Tuesdays, Thursdays, and Saturdays to insurance sales. This disciplined approach allowed him to build his confidence in selling insurance. Within eight months, he closed his personal training business and transitioned into full-time insurance sales.

Duford emphasizes the importance of treating part-time insurance sales as a serious commitment. He suggests finding a mentor, an experienced insurance agent who can provide guidance and insights. Additionally, he recommends developing a consistent routine and utilizing effective lead generation strategies. Discipline, dedication, and a full-time mentality contributed to his success in part-time insurance sales.

Other Notable Mentions

• Mehdi Fakharzadeh: Born in Iran, Mehdi moved to the US in his twenties. He joined the Metropolitan Life Insurance Company with no prior sales experience and became their top salesman of all time. Mehdi devised tools and created highly productive sales systems, emphasizing the importance of understanding human nature and relationships.
• Peter Rosengard: Co-founder of the London Comedy Store, he accidentally fell into insurance sales. On his way back from a job interview, he sold his first life policy to a cab driver. Rosengard emphasizes the value of long-term relationships with clients and thinking outside the box.
• John Savage: Along with his brother, Savage founded Savage & Associates in a tiny office in Northwest Ohio. In less than 15 years, the agency grew to over $50 million in annual production, becoming one of the largest insurance and financial service agencies in the US. Savage attributed his success to a strong focus on serving others and treating clients and associates as good friends.
• Art Williams Jr.: A former football coach, Art Williams turned to insurance sales after his father's sudden death highlighted the importance of adequate life insurance. He became an advocate for term insurance and founded Primerica Financial Services, the largest seller of life insurance in the US.
• Frank Bettger: After a brief baseball career, Frank Bettger ventured into insurance sales. Initially struggling, he discovered the power of enthusiasm and asking the right questions. By applying these techniques, he significantly increased his sales and became one of the best-known life insurance salesmen in US history.
• William Clement Stone: Starting as a newspaper seller at a young age, Stone eventually joined his mother in selling accident insurance, averaging an impressive 48 policies per day. He founded the Combined Insurance Company of America, which grew into a multi-million-dollar enterprise. Stone believed in a cold canvass technique, directly approaching potential customers in office buildings.
• Ben Feldman: Over a 50-year career, Ben Feldman sold life insurance policies worth $1.5 billion, mostly in the small town of East Liverpool, Ohio. He tailored unique life insurance plans for each client and emphasized the importance of educating himself on various subjects to better serve his clients.

Frequently asked questions