Life Insurance Career Opportunities: Abundant Job Options Explored

Life insurance is a competitive industry with tens of thousands of jobs available in the United States each year. In 2020, there were 409,950 life insurance agents in the US, providing one agent for every 1,234 people. The industry offers a range of roles, including sales agents, brokers, and medical coders, with high pay and great job security.

While it can be challenging to break into the industry, life insurance companies such as New York Life Insurance offer a variety of job opportunities in finance, technology, customer service, and investments.

Sales agents

Life insurance sales agents have a challenging job, and the burnout rate is high. Over 90% of new agents quit within the first year, and this number rises to over 95% within five years. However, for those who can persevere, the rewards can be significant, with some agents earning over $100,000 in their first year.

Life insurance agents are often paid on a commission-only basis, although some companies may offer a small base salary. Agents typically receive between 30% and 90% of the amount paid for a policy (the premium) in the first year, and between 3% and 10% in subsequent years. For example, an agent selling a policy with a $100 monthly premium would make $1,200 in commission in the first year, and $60 in each subsequent year.

The job of a life insurance agent is not just about selling policies; it's about building relationships and providing excellent customer service. Agents must be able to assess clients' needs and recommend appropriate insurance solutions. They also need to have a strong understanding of the products they are selling and be able to explain the benefits and features to potential customers.

To become a life insurance agent, you will typically need a high school diploma and a background in sales. While a college degree is not always required, it is often preferred. Additionally, you must complete a licensing course and pass a state-administered exam.

Life insurance sales can be a gruelling career, with a high turnover rate. However, for those with the tenacity and drive to succeed, it can be a lucrative and rewarding profession.

Brokers

A life insurance broker sells life insurance policies to clients. They are not employed by a specific company but work for the client to help them navigate policy offerings from various companies and choose the best one for them. They do this by assessing the client's insurance needs and comparing life insurance quotes. Life insurance brokers may work independently or for a specific insurance company, insurance agency, or brokerage.

Life Insurance Broker Job Description

Life insurance brokers are responsible for the overall financial performance of a branch office at an insurance company. They must recruit, train, develop, and supervise insurance agents to gain new clients and drive sales. They also need to maximize profits and minimize risk and liability regarding the payment of future benefits by analyzing actuary data and strategically setting premiums for policyholders.

Other duties include overseeing insurance claims investigations to ensure staff compliance with regulations and reviewing existing company policies and making recommendations for improvement.

Life Insurance Broker Qualifications

• Bachelor's degree in business administration or finance
• 5+ years of experience in a supervisory position in the insurance industry
• Series 6, 63, and 26 licenses are required; Series 65 and 66 licenses are preferred
• Extensive knowledge of different types of insurance and insurance plans, including term life, whole life, universal life, variable life, simplified issue life, guaranteed issue life, final expense, and group life
• Excellent management, leadership, interpersonal skills, and communication skills

Life Insurance Broker Salary

The salary for life insurance brokers varies depending on location and experience level. The national average salary for a life insurance broker in the United States is $93,973 per year, with the 25th percentile at $81,500 and the 75th percentile at $104,500. The highest salary for a life insurance broker is $146,500 per year.

Life insurance brokers typically work on a commission basis, with the potential to earn additional bonuses. Commissions are usually a percentage of the premium amount, ranging from 40% to 115% of the policy's first-year premiums. Commissions for renewals are significantly lower, at about 1% to 2%.

Pros and Cons of Being a Life Insurance Broker

Pros

• May make buying life insurance easier and more efficient for clients
• Easy way to compare coverage offerings and rates from multiple companies
• Ability to negotiate on the client's behalf to secure coverage if they have a pre-existing condition

Cons

• Some brokers may charge a fee in addition to their commission
• Knowledge and experience among brokers can vary significantly
• Finding a broker you trust may take time and effort

Medical coders

To become a medical coder, you need a high school diploma or GED, and further training through a certification or degree program. While a four-year degree is not required, certain qualifications and skills are necessary, such as knowledge of medical terminology, proficiency in medical coding systems, attention to detail, analytical skills, and communication skills.

The median annual salary for medical coders is $47,180, or $22.69 per hour. The US Bureau of Labor Statistics projects an 8% growth in employment for medical secretaries, including medical coders, from 2021 to 2031.

Medical management

The Role of Medical Management in Life Insurance

Job Prospects in Medical Management

The life insurance industry offers a variety of job opportunities in medical management, catering to different skill sets and qualifications. Here are some examples of roles in this field:

• Medical Director: Medical directors are responsible for overseeing the medical aspects of life insurance policies and ensuring compliance with relevant standards. They may also be involved in developing and implementing medical guidelines and protocols for insurance companies. According to industry benchmarks, about 52% of medical directors have over 15 years of experience in the insurance industry, and 57% are board-certified in insurance medicine. Additionally, 44% work remotely at least part of the time, and the salary range for full-time positions is typically between $100,000 and $250,000.
• Clinical Positions: These roles involve working directly with clients and assessing their medical history, current health status, and risk factors. Clinical positions may include jobs such as medical examiners, underwriters, or nurses, who play a crucial role in evaluating applicants' health and determining their eligibility for life insurance coverage.
• Medical Sales Director: This role combines sales expertise with a strong understanding of the life insurance industry and medical equipment. Medical sales directors are responsible for driving sales and promoting life insurance products, often within the context of medical equipment or services.
• Quality Improvement Manager: Quality improvement managers are responsible for overseeing and managing the quality improvement programs within a life insurance company or a healthcare organization. They work to ensure that the company's practices and procedures meet industry standards and comply with state and federal regulations.
• Medical Writing Manager: Medical writing managers are in charge of creating and overseeing the production of medical content for life insurance companies. This may include developing educational materials for policyholders, crafting marketing copy, or contributing to research publications.
• Medical Practice Manager: Medical practice managers oversee the day-to-day operations of a medical practice or clinic within a life insurance company. They manage staff, ensure smooth patient care, and handle administrative tasks such as scheduling and billing.

These examples highlight the diverse range of career paths available in medical management within the life insurance industry. Each role contributes to the effective assessment, underwriting, and management of life insurance policies, ensuring that individuals receive appropriate coverage based on their health and medical history.

By offering a variety of job opportunities, the life insurance industry provides a wide range of options for professionals seeking careers in medical management. These roles are integral to the industry, as they help insurance providers accurately assess risk, develop appropriate policies, and deliver valuable services to their customers.

Finance and accounting

The life insurance industry is a challenging sector to enter and succeed in, with a high burnout rate. However, it offers high financial rewards, with life insurance agents earning large commissions and passive income through renewal commissions.

The career path of a life insurance agent is lucrative but demanding, requiring constant hustling, networking, and the ability to handle rejection. The job involves finding potential customers, which can be difficult and time-consuming, and then persuading them to purchase a policy. A strong background in sales is advantageous, and most companies require agents to obtain a license by taking a 20-50 hour class and passing a state-administered exam.

Life insurance agents can be "captive" agents, representing only one company, or "non-captive" agents, working with multiple insurance carriers. They spend a significant amount of time on marketing activities to identify potential clients, provide them with quotes, and persuade them to sign insurance contracts.

The role of a life insurance agent is not just about sales; it's about providing financial security and protection to clients and their families. It requires strong communication skills, energy, and stamina to succeed in this highly competitive industry.

In addition to sales agents, there are various other finance and accounting roles within the life insurance industry, such as brokers, underwriters, risk analysts, and actuaries, each contributing to the assessment, management, and mitigation of financial risks associated with insurance policies.

Overall, the life insurance industry offers a range of career opportunities in finance and accounting, providing high pay, job security, and the potential for long-term financial success.

Frequently asked questions