Alyssa Lane
Life insurance agents help clients navigate the often confusing process of applying for and purchasing life insurance coverage. They are responsible for finding and retaining clients, contacting them, and explaining difficult financial and insurance terms in a way that is easy to understand. Life insurance agents are usually compensated through a combination of salary and sales commission, and they may also receive training from the company. To become a life insurance agent, a strong background in sales and a bachelor's degree are recommended.
| Characteristics | Values |
|---|---|
| Job Security | Life insurance agents have job security as long as they can find and retain clients. |
| Salary | Life insurance agents are usually paid on a commission basis, but some companies may offer a small salary or compensation for 1-2 months of training. |
| Qualifications | A bachelor's degree is recommended but not required. A strong background in sales and a resume that demonstrates an entrepreneurial spirit are beneficial. |
| Training | Life insurance companies typically provide training for new hires, but additional education and courses are needed to meet state requirements for an insurance license. |
| Work Hours | The first 12 months on the job typically involve a lot of outreach and phone calls to potential clients. |
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What You'll Learn
Job security and salary
Life insurance agents might be given a small salary to get started, but they are otherwise primarily dependent on commissions to make a living. Some companies offer a salary to keep newbies from starving, but this is becoming more rare. Many agents are now lucky to be compensated for one to two months of training before being put on a "commission-only" basis. The sales commission that life insurance agents might earn in the first year is the highest commission for any type of insurance.
Life insurance agents have job security as long as they can find and retain clients. However, the work is grueling, and many agents don't last more than a year. This means that there are constant vacancies, and it can be relatively easy to get started as a new hire. A strong background in sales can get you hired, and once hired, you must take a 20- to 50-hour class and pass a state-administered licensing exam. A bachelor's degree is recommended but not required to start.
To get hired, you'll need to put together a resume that highlights your entrepreneurial spirit and any experience that shows you taking the initiative. Resumes that show a track record of self-starting behavior will help you get your foot in the door. Once you have your resume polished, you can begin finding positions and applying. It is important to only apply to companies that have received favorable reviews by rating agencies like Moody's and Standard & Poor's. Most companies prominently post their job listings by geographical area, which makes them easily searchable. When you find a company in your area that seems to fit your personality, apply for the position and make sure you follow the company's instructions on its site.
Follow up with phone calls on a weekly basis until you hear an answer. Many insurance company recruiters will decline to interview a potential agent who doesn't first make a follow-up call; this is considered to be a strong indicator of a potential agent's tenacity.
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Qualifications and training
To become a life insurance agent, you will need to obtain a license to sell insurance policies. This is a requirement in most states and involves passing a state-administered licensing exam. Before taking the exam, you will need to complete a pre-licensing education course, which will cover topics such as state insurance regulations, general insurance concepts and terms, specific policies applicable to life insurance, annuities, tax considerations, and requirements to maintain an insurance sales agent license. The length of these courses varies by state, ranging from 20 to 50 hours. In addition to the coursework, you will need to meet other application criteria, which may include a completed application review, fingerprints, and a background check.
While a bachelor's degree is not required, it is recommended. Some insurance companies may expect a high school diploma or GED as a minimum educational qualification. Classes in business concepts, marketing, communications, and math during high school can be particularly helpful for a career as a life insurance agent.
Once you have obtained your license, you may also need to pursue additional licenses to sell insurance in multiple states or offer various types of insurance beyond life insurance. This can include obtaining licenses through the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA).
While the licensing requirements are essential, success as a life insurance agent also depends on soft skills such as communication and customer service. Sales experience is often considered a plus by employers.
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Sales and commissions
Life insurance agents are typically paid via a combination of salary and sales commissions. While some companies do offer a small base salary to get agents started, they are generally dependent on commissions to make a living. The first year's commission is the highest for any type of insurance, but finding and retaining customers is difficult and time-consuming. A strong background in sales is often a prerequisite for hiring, and a bachelor's degree is recommended, though not required.
Once hired, life insurance agents must take a 20- to 50-hour class and pass a state-administered licensing exam to sell insurance. They also need to be great communicators, able to explain complicated financial and insurance terms in ways that customers can understand. Hands-on training is provided by the insurance company, but continued education and courses are needed to meet state requirements for an insurance license.
In the first 12 months on the job, life insurance agents can expect to spend a lot of time handing out business cards and making phone calls to find potential clients. Their sales managers will be keen for them to make as many contacts as possible each week. This can be a struggle financially until the first sales commissions start to come in, and many agents are now put on a "commission-only" basis after one to two months of training.
Life insurance sales can be a lucrative career, but it is grueling work with a high turnover rate. The job promises great rewards for those who are willing to put in the work and deal with a good amount of rejection. To succeed, agents need to be driven and able to be self-starters.
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Company reviews and ratings
When considering a life insurance agent job, it is important to research the company's reputation and employee satisfaction. While specific reviews and ratings may vary depending on the company and location, here are some factors to consider:
- Company Reputation: Look for companies with a strong reputation in the industry. This includes companies that are well-established, financially stable, and known for their ethical business practices. You can research industry reports, ratings from independent agencies, and customer reviews to assess the company's standing.
- Employee Satisfaction: Consider the experiences of current and former employees. Seek out reviews and testimonials from insurance agents who have worked or are currently working for the company. Pay attention to factors such as work-life balance, career development opportunities, company culture, and job satisfaction. Websites like Glassdoor and LinkedIn often provide insights into these aspects.
- Training and Support: As a life insurance agent, ongoing training and support from the company are crucial. Look for companies that invest in their employees' development and provide comprehensive training programs. This demonstrates their commitment to helping you succeed in your role.
- Compensation and Benefits: Understand the compensation structure, including base salary, commissions, bonuses, and benefits packages. Compare these across different companies to assess their competitiveness. Look for companies that offer attractive and comprehensive benefits, including health insurance, retirement plans, and potential incentives.
- Work Environment: Consider the work environment and company culture. Some companies may offer more flexibility, such as remote work options or a good work-life balance. Others may have a more traditional office-based approach. Choose a company whose values and work environment align with your preferences and professional goals.
- Leadership and Mentorship: Seek out companies that prioritize strong leadership and mentorship programs. This indicates a commitment to developing their talent and fostering a supportive work environment. Look for testimonials or reviews that highlight accessible leadership and mentorship opportunities within the organization.
- Advancement Opportunities: Research the potential for career advancement within the company. Are there clear paths for progression, and do they offer opportunities for promotion or specialization? Understanding the company's approach to employee development and internal promotions is essential for your long-term career prospects.
- Work-Life Balance: While the insurance industry can be demanding, some companies prioritize a healthy work-life balance. Look for testimonials or reviews that discuss the company's approach to workload management, vacation policies, and support for employees' well-being. A company that values work-life balance can contribute to a more sustainable and enjoyable career.
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Job duties and responsibilities
A life insurance agent helps potential customers find the right insurance products to fit their needs. This involves contacting clients and guiding them through the process of applying for and purchasing life insurance coverage. Agents also help clients with the process of filling out insurance forms, offering advice, and explaining difficult financial and insurance terms in a way that is easy for the client to understand.
Life insurance agents need to be great communicators, able to translate a complicated process with ease. They also need to be good at finding and retaining clients, as this is key to job security in this role. Agents can make commissions in addition to their salaries.
To become a life insurance agent, you will need a state license. A bachelor's degree is recommended but not required, as insurance companies usually provide training for new hires. However, continued education and courses are needed to meet state requirements for an insurance license.
Life insurance agents should be able to advise clients on the different types of life insurance policies available, such as term life, whole life, and universal life insurance. They should also be able to explain the benefits of each policy, such as whether it offers coverage immediately or has a waiting period, and whether it covers burial costs. Agents should also be able to advise clients on how much insurance they need, for what period of time, and in what amount. This will depend on factors such as the client's age, health, lifestyle factors, and financial situation.
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Frequently asked questions
A bachelor's degree is recommended but not required. A strong background in sales is beneficial, as is a resume that highlights your entrepreneurial spirit and initiative. Once hired, you must take a 20- to 50-hour class and pass a state-administered licensing exam to obtain your insurance license.
As a life insurance agent, your job will involve contacting clients and helping them find the right insurance products to fit their needs. This includes walking them through the process of applying for and purchasing life insurance coverage and explaining difficult financial and insurance terms in ways the client can understand.
Life insurance agents typically work on a commission basis, with some companies offering a small salary to get started. The sales commission in the first year is the highest for any type of insurance.
The work of a life insurance agent is grueling, with a high turnover rate, so there are constant vacancies and it can be relatively easy to get started as a new hire. However, finding potential customers is difficult and time-consuming, and getting those customers to make a purchase is even harder.
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