How to Become a Life Insurance Agent
The retail life insurance industry is difficult to break into or succeed in. In 2020, there were 409,950 life insurance agents in the United States, with over 90% of new agents quitting within the first year. The vast majority of life insurance sales jobs are commission-based. Insurance companies recruit new agents with promises of abundant leads.
If rejection bothers you, life insurance sales may not be the right career for you. Becoming a life insurance agent is simple; jobs can be found on sites like Monster.com and Craigslist. The typical first-year commission for an auto insurance policy is 10% to 15%. Life insurance often pays 100% or more.
A professional understands the products to the point where the reasons given are sound, and agents can practice delivering their product explanations in front of a mirror to improve communication skills. An agent’s early years may require weekend hours, later hours during the week, and weekends off.
How do I start a career in insurance sales?
You’ll need a high school diploma to start your insurance career, though some companies may require a college diploma. You’ll need to understand the insurance business, so taking finance, business, and economics courses is a big plus.
Is selling insurance a good career opportunity?
On the plus side, selling life insurance has a few advantages that are hard to come by in other professions: first, life insurance sales jobs are plentiful and easy to come by, and second, commission percentages are extremely high when compared to other insurance sales, such as health insurance.
Does selling insurance pay well?
Insurance sales typically do not pay well at first, but unlike other professions, the longer you stay in insurance, the more money you make. The best agents have the most and most respected designations, such as chartered life underwriter.
How do you get paid selling insurance?
Most insurance salespeople are compensated primarily on a commission basis; in fact, most agents aren’t even employees of the carrier; rather, they’re independent contractors who are paid based on how much they sell, with higher commissions for specific types of products.
How do I succeed in insurance sales?
10 Fantastic Insurance Sales Tips for New Agents
- Dress professionally to establish trust and confidence.
- Demonstrate knowledge and avoid slang.
- Find a way to relate to your customers.
- Learn from your more experienced coworkers.
- Listen and watch yourself talking to clients.
- Listen to your customers.
What is the average insurance agent salary?
In Sydney, NSW, the average annual salary for an insurance agent is $58,913.
Why do insurance agents fail?
Most insurance agents fail because they had unrealistic expectations and expected too much too soon, which happens when the business isn’t adequately capitalized to allow for the time it takes to turn a profit. Unrealistic expectations are always the result of poor planning.
Why do insurance agents quit?
Agents quit selling insurance for a variety of reasons, including running out of prospects, personal issues such as health problems, and discovering the business wasn’t a good fit, according to 26.2% of respondents.
Is selling insurance a pyramid scheme?
No! A pyramid scheme is one in which the majority of sales revenue is generated by recruiting others to sell under you as a “team,” a “unit,” or something similar – this is a common setup used by many direct sales companies, despite their reluctance to admit it.
What is the most profitable insurance to sell?
Selling the Most Profitable Insurance
- It should come as no surprise that auto insurance is the most popular and profitable insurance product.
- Property or home insurance typically covers theft, flood, fire, and inclement weather, among other risks to your clients’ property.
How much money can you make selling insurance?
Insurance agents earned a median annual wage of $48,150, with the highest paid 10% earning more than $116,940 and the lowest paid 10% earning less than $26,120.
Who is the highest paid insurance agent?
Gideon du Plessis, who failed his tenth grade and never went to college, is now the world’s highest-paid insurance agent, with annual commissions of more than Rs 7 crore (Rs 70 million), a record he has kept for the past 12-14 years, selling 700 policies per year.
Can I sell life insurance from home?
Yes, you can make money selling life insurance from home, and it’s a relatively simple business depending on the type of life insurance you’re selling and the needs of your clients. The major challenge with selling only term insurance is that most agents don’t get paid a renewal commission.
How do insurance agents get clients?
Create a program that encourages your current clients to refer their friends and family to your agency, and when you get a new client, send them a thank you letter and a small gift (like a keychain or pen) to welcome them to the agency.
How much do insurance agents make a month?
What Does a Monthly Salary for a Life Insurance Agent Look Like?
|Annual Salary||Hourly Wage|