What are the pros and cons of being an insurance agent?

Pros:

• Job growth

  Insurance agents benefit from job growth projections. The US Bureau of Labor and Statistics predicts the field of insurance to grow by at least 5% by the year 2030. This figure equates to around 27,500 more insurance sales agent roles, signifying a higher rate of growth for the field than the average for all other professions.

• Flexible work schedules

  Some insurance agents get to set their work schedules to a degree. Those seeking jobs that can have schedules that fall in and out of the traditional business hours might find a benefit in this field. Many insurance agents also have remote or telecommuting job opportunities, meaning they can work completely or partially from home.

• The possibility of high income

  An insurance agent's income is based on the sales volume they obtain. Meaning their earnings are directly tied to commissions they get from their insurance sales. Highly motivated and ambitious insurance agents can earn a comfortable living if they build the right relationships with clients. Insurance agents also benefit from passive income earned from policy renewals.

• Minimal educational and experience requirements

  To become an insurance agent you do not have to get a college degree, though some companies might prefer candidates with degrees. Insurance agents must pass a state licensing exam, but aside from this, there are no other strict requirements to work in the field. Many in the industry learn their skills through on-the-job training and other sales experience.

Cons:

• Commissions

  As was previously mentioned, insurance agents earn their income based on sales commissions. Many are independent contractors that do not receive a base salary. This means if you don't put up good sales numbers, you are not going to earn very much money in the field. Commissions can be a daunting or appealing prospect depending on who you are.

• You get a lot of "no's"

  Insurance agents must be strong-willed and able to persevere when they inevitably come up against leads or clients that turn their offers down. Insurance agents must be okay with rejection and have the fortitude to press on and make a lot of calls daily. This aspect of the job can be particularly stressful when just starting.

• Employee benefits

  Due to a large portion of insurance agents being independent contractors, they might not receive full traditional employee benefits. Paid time off, for example, can be limited or completely nonexistent. This also depends on what insurance company you work for, but in general, most insurance agents do not receive many employee benefits.

• Customer interactions

  Insurance agents encounter all different types of people when trying to sell their company's insurance services. Some can be friendly and easy to talk with, while others can be more challenging, or even rude. Insurance agents must have strong communication and persuasion skills, in addition to having a thick skin when it comes to difficult potential customers.