Becoming A Phoenix Life Insurance Agent: A Guide

Phoenix Life Insurance, a subsidiary of Phoenix Companies, Inc., a financial services company, offers life insurance policies to its customers. To become a Phoenix Life Insurance agent, you need to meet certain requirements, including educational qualifications, licensing, and sales experience.

A high school diploma or GED is necessary, and some companies may prefer a bachelor's degree in a related field. Obtaining a license is a crucial step, and the requirements vary by state. In Arizona, for instance, you need to complete a pre-license course, pass the licensing exam, undergo a background check, and submit an application.

Additionally, sales experience is advantageous, and some companies may require a minimum number of years in the life insurance industry. It is important to note that life insurance agents are typically paid on a commission basis, so strong sales skills and perseverance are essential for success in this career.

The role of a Phoenix life insurance agent

A Phoenix life insurance agent is a type of insurance professional who sells life insurance policies to people in their community. They help clients by providing a financial safety net for their families in their absence.

To become a Phoenix life insurance agent, one must meet certain requirements. These include having a high school diploma or GED, completing the necessary licensing requirements, and passing a licensing exam. Obtaining a securities license is also recommended to sell more advanced life insurance products.

The day-to-day work of a Phoenix life insurance agent can be challenging. It involves constant hustling, networking, and handling rejection. They may have to cold-call and door-knock to find potential customers. Additionally, Phoenix life insurance agents are often paid on commission, so their income depends on their sales performance.

Overall, the role of a Phoenix life insurance agent is crucial in helping individuals and families secure their financial future and protect their loved ones. It requires a strong understanding of insurance products, excellent communication skills, and the ability to handle rejection.

Qualifications and requirements to become a Phoenix life insurance agent

To become a Phoenix life insurance agent, you must meet certain qualifications and requirements. Here are the key points to consider:

Education and Licensing:

• A high school diploma or GED is necessary to pursue a career as a life insurance agent. While a bachelor's degree is not always required, some companies may prefer candidates with a degree in a related field such as business or marketing.
• Complete a pre-license education course: Although Arizona doesn't have formal pre-license education requirements, it is recommended to take an online course or purchase books/study materials to prepare for the licensing exam. This step ensures you have the necessary knowledge to pass the exam and understand your duties as an agent.
• Pass the Arizona Life Insurance Licensing Exam: This exam is administered by Prometric and costs $38. It covers basic life insurance knowledge, insurance concepts, terms, rules, state and federal regulations, and Arizona-specific practices. You'll have 120 minutes to complete the exam.
• Obtain a Fingerprint-Based Background Check: Prometric offers fingerprinting services for a total cost of $42. This step is part of the licensing process and ensures your suitability for the role.
• Apply for the Arizona Life Insurance License: Submit your license application through the National Insurance Producer Registry (NIPR) and pay the application fee of $120, along with a $5.60 transaction fee. Ensure you meet the minimum age requirement of 18 years old.
• Mail Your Fingerprint Card and Form L-152: Send your fingerprint card and the completed Form L-152 to the Arizona Department of Insurance and Financial Institutions. The form helps verify your identity, and you must attach a copy of one of the accepted forms of identification.

Skills and Attributes:

• Strong sales and marketing skills: Life insurance agents need to be able to identify potential clients, market the relevant insurance products, and persuade clients to purchase policies. This requires excellent communication, interpersonal, and relationship-building skills.
• Resilience and perseverance: The insurance sales industry is highly competitive and involves handling rejection. A successful agent must be motivated, resilient, and able to handle the constant hustle and grind of sales.
• Entrepreneurial spirit: Life insurance agents often work independently or as contractors, so they need to be self-starters and driven to initiate business opportunities.
• Financial knowledge: A solid understanding of financial concepts, including taxes, retirement planning, and investment strategies, is beneficial when advising clients on their insurance needs.

Additional Considerations:

• Check company reputation: When applying for jobs, research the insurance companies' ratings and reviews from agencies like Moody's and Standard & Poor's. Look for companies with secure products, reasonable prices, and a good reputation among consumers and agents.
• Consider further licenses: Depending on the insurance products you want to sell, you may need additional licenses. For example, if you want to sell variable-contract life insurance products, you may need a license from the Financial Industry Regulatory Authority (FINRA).
• Develop a marketing approach: Successful agents often find a niche market and develop a marketing strategy to reach their target clients effectively.

Steps to become a Phoenix life insurance agent

The road to becoming a life insurance agent in Phoenix, Arizona, is not an easy one, but it can be a rewarding career for those with the right temperament. Here are the steps you need to take to become a life insurance agent in Phoenix.

Step 1: Earn your qualifications

You will need a high school diploma or GED to become a life insurance agent. While a bachelor's degree is not required, some companies may prefer candidates with a degree in a related field, such as business or marketing.

Step 2: Research licensing requirements

Before you begin, you should research the licensing requirements for the state of Arizona. This information can be found on the Arizona Department of Insurance and Financial Institutions website. Some companies may assist you with the licensing process, but many insurance agents will need to navigate these requirements independently.

Step 3: Complete a pre-license course

Although not a formal requirement, it is highly recommended that you take a pre-license course to prepare for the licensing exam. These courses are offered online and can give you the specific industry knowledge you will need to pass the exam.

Step 4: Take and pass the licensing exam

The Arizona life insurance licensing exam is administered by Prometric and costs $38. It consists of 100 scored questions across seven sections, and you will have 120 minutes to complete it. The exam covers basic life insurance knowledge, insurance concepts and terms, rules, state and federal regulations, and Arizona-specific practices.

Step 5: Get a fingerprint-based background check

After passing the exam, you will need to get a fingerprint-based background check from Prometric. This service is offered at their Arizona test centres and costs $42, including an FBI fingerprint processing fee. Keep the receipt, as you will need to submit it with your license application.

Step 6: Submit your license application

The application fee for an Arizona life insurance license is $120, with an additional $5.60 transaction fee, for a total of $125.60. You will need to submit Form L-FPV as part of your application, and you must be at least 18 years old. The Arizona Department of Insurance and Financial Institutions will review your application and background check, which usually takes up to one month.

Step 7: Choose your sales path

Once you have obtained your license, you will need to decide whether to work as a captive agent for a single company or as an independent agent running your own business. If you are just starting, you may benefit from working for a single company first.

Step 8: Develop a marketing approach

To succeed as a life insurance agent, you will need to adopt an effective marketing approach. This could include finding a niche market and organizing client appointments at the start of the week to improve your client conversions.

Step 9: Maintain your license

To maintain your license in Arizona, you must complete 48 hours of continuing education (CE) every four years, including at least six hours of ethics training. This will allow you to renew your license and keep it in good standing.

Becoming a life insurance agent in Phoenix, Arizona, requires dedication and a strong work ethic. By following these steps, you can set yourself up for a successful career in the insurance industry.

How much Phoenix life insurance agents earn

The income of a Phoenix life insurance agent depends on several factors, including their location, experience level, certifications, types of policies sold, number of policies sold, and method of operation. Most life insurance agents are paid by commission, with some earning a base salary as well.

The average salary for a life insurance agent in Phoenix, Arizona, is $85,208, 12% above the national average of $75,801. This figure can vary depending on the company and the agent's experience, with salaries ranging from $30,000 to $400,000 per year. Some companies offer a base salary and benefits, while others classify their sales representatives as independent contractors, paying them solely through commissions.

Life insurance agents typically earn a large upfront commission for each policy sold, ranging from 40% to 100% of the first year's premium. After the first year, agents continue to receive additional commissions for each year the policy is renewed, usually under 5% of the annual premium. The size of these commissions depends on the policy type, the state in which the policy is written, and the insurance company.

The income potential for life insurance agents is uncapped, with some of the highest earners making well over six figures annually. However, it is important to note that the burnout rate for life insurance sales agents is high, with more than 90% of new agents quitting within the first year.

What types of insurance Phoenix life insurance agents sell

Phoenix life insurance agents sell a variety of insurance products, including life insurance and annuities. Life insurance policies can be further categorized into different types, such as term life insurance, whole life insurance, universal life insurance, and variable universal life insurance. Each of these insurance products offers unique features and benefits to meet the diverse needs of clients.

Term life insurance is a popular option for those seeking coverage for a limited period. It typically comes with lower initial premiums and is purchased in large amounts to meet short-term goals. Whole life insurance, on the other hand, offers lifetime coverage with consistent premiums. It also accumulates cash value over time, creating an asset that policyholders can utilize during their lifetime.

Universal life insurance introduces an additional savings and investment element to the policy. Policyholders can borrow against the cash value without tax implications, and both beneficiaries and policyholders benefit from this type of insurance. Variable universal life insurance offers similar benefits but provides more flexibility in terms of premiums and death benefits, along with a range of investment options.

Phoenix life insurance agents also provide individual and joint life insurance policies, catering to those who want coverage through various policies. Additionally, they offer business and employee life insurance, helping companies and their staff achieve financial goals and providing security for loved ones and business partners.

Life insurance agents in Phoenix can guide clients in selecting the most suitable policy for their circumstances, ensuring they understand the features and benefits of each option.

Frequently asked questions