Q: Do insurance agents make a base salary?

No, insurance agents do not make a base salary. The vast majority of life insurance sales jobs are straight commission, which means no base salary. That's not to say that insurance agents do not make decent money.

Question 1

How long does it take to become a licensed insurance agent?

Accepted Answer

It takes about three to six weeks to become a licensed insurance agent. This timeline includes the time it takes to study and pass the insurance exam.

To become a certified insurance agent requires getting an insurance license. Each state has different processes and requirements for insurance licensing, but the same general guidelines are followed in most states.

Question 2

How to work for an insurance company?

Accepted Answer

To work for an insurance company, you need to complete your education, become certified, and network. Many insurance agents hold bachelor's degrees, but you must hold at least a high school diploma to work for an insurance company.

Question 3

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

Accepted Answer

The pros and cons of being an insurance agent relate to job growth, flexible work schedules, and commissions.

Here are the top pros and cons of being an insurance agent:

Pros:

Question 4

What are the roles of an insurance agent?

Accepted Answer

The roles of an insurance agent are to sell and manage insurance policies on behalf of an insurance company. Their role may include attracting new clients and answering their questions, helping clients choose the best approach, and making sure all legal requirements are met.

Question 5

What disqualifies you from getting an insurance license?

Accepted Answer

There are several different things that can disqualify you from getting an insurance license. Here is a look at the top items that can disqualify you from obtaining an insurance license:

Question 6

What skills do you need to be an insurance agent?

Accepted Answer

The skills you need to be an insurance agent include the right mixture of product knowledge, sales abilities, and people skills. To be successful as an insurance agent is all about your ability to sell policies. There are specific skills that every successful insurance agent should have.

Question 7

Why do you want to work in insurance?

Accepted Answer

"I want to work in insurance because it's a stable industry that I find interesting, I want the opportunity to help people, and because there are many facets of the insurance industry that I am interested in" is a good answer to this interview question. You should also highlight specific aspects that interest you, such underwriting claims, or insurance marketing.

Question 8

Insurance Agent vs. Broker

Accepted Answer

An insurance agent is an insurance professional who sells insurance plans to buyers, while a broker is an independent insurance specialist who legally represents buyers.

An insurance agent works for an insurance company and sells that company's insurance products to customers. Insurance agents provide information about available policies from the insurance company to insurance buyers. They have contractual agreements with their company specifying policies they can sell and the compensation the agent receives.

Question 9

What is a good starting salary for an Insurance Agent?

Accepted Answer

A good starting salary for an insurance agent is $27,000 in the United States. That puts you in the 10th percentile of annual income for an insurance agent in the U.S., which is about what you would expect if you were new to the field. The average salary for insurance agents is $46,949, but that normally requires some level of experience to achieve. Furthermore, a good starting salary for an insurance agent can vary by state.

Question 10

Do insurance agents make a base salary?

Accepted Answer

No, insurance agents do not make a base salary. The vast majority of life insurance sales jobs are straight commission, which means no base salary. That's not to say that insurance agents do not make decent money.

Question 11

How are insurance agents paid?

Accepted Answer

Insurance agents are paid a commission on the sale of insurance plans. This commission comes out of the buyer's premium; buyers never pay insurance agents directly for their services.

Most commissions for insurance agents are between 2% and 8% of the insurance plan's premium. This also depends on particular state regulations regarding this issue.

The primary way an insurance agent makes money is from commissions and fees earned on sold insurance policies. These commissions are usually a percentage of the policy's total yearly premium.

An insurance premium is the amount of money an individual client, company, or group pays an insurance provider for a specific insurance plan and policy.

Some insurance agents might also receive compensation in the form of an annual salary; however, many still rely on larger earnings from their commissions on insurance plan sales.

Insurance agents work in many different insurance industries, such as health insurance, life insurance, automotive insurance, home insurance, and annuities.

Question 12

How much do entry-level insurance agents make?

Accepted Answer

Entry-level insurance agents make around $51,168 a year. However, this amount may vary from $27,000 to $300,000 a year. Factors such as sales abilities, location, and company all can impact how much money an insurance agent can make just starting.

Question 13

Can an insurance agent make 100k?

Accepted Answer

Yes, you can make $100,000 per year as an insurance agent. While possible, it is unlikely to earn over $100k as an insurance agent because even higher-paid positions do not typically earn more than $79,000 per year. The average annual salary for an insurance agent is $46,949. For example, insurance agents in New York whose salaries are in the 90th percentile earn an average salary of $124,000.

Question 14

Do insurance agents make good money?

Accepted Answer

Yes, insurance agents make good money. The national average pay for an insurance agent is $79,730 a year. However, it can vary widely, starting as little as $20,000 a year to as much as $174,000 a year.

Question 15

Is being an insurance agent a stressful job?

Accepted Answer

No, being an insurance agent is not a stressful job. Working as an insurance agent gives you many options and flexibility in what you want to specialize in. Also, as an insurance agent, you have several options for employment, including working for yourself.

Question 16

What percentage of Insurance Agents are female?

Accepted Answer

49.8% of insurance agents are female in the United States. This is 1.8 percentage points higher than last year. Additionally, the percentage of female insurance agents has increased by 2.7 percentage points since 2010. That means there are a total of 93,812 female insurance agents in the U.S. and 94,566 male insurance agents in the United States. Note that Zippia's estimate accounts only for the 188,378 people with the specific job title of insurance agent and doesn't include grouping similar job titles, or people with potentially similar credentialing.

Question 17

Why did I quit being an insurance agent?

Accepted Answer

I quit being an insurance agent because the agency I worked for wasn't a good fit for me. This was the most common reason that was reported by agents who quit selling insurance. It was reported that 90% to 95% of agents quit within the first 12 months of receiving their license.

Approximately 11% of agents who started to sell insurance quit within the first three months of starting, and approximately 19% quit within the first 3 to 6 months. One out of 3 agents stated that their primary reason for quitting was that the agency they worked for was not a good fit for them.

The second biggest reason for quitting the business was because they ran out of money to invest in leads. Less important reasons for quitting were running out of prospects and personal issues like health problems.

When asked what factors clutter was to get better insurance leads, a close second was the agent's understanding that they should have saved more money to get through the tougher months. Additional feedback was access to better sales training and selling a different product.

Many agents reported that they failed to do adequate research before getting involved in the business. It is common for agents to get recruited into the insurance business because of someone they met. Perhaps a family member or friend introduced them to the business, and they did little to no research.

To that end, it is important to do your due diligence. If you don't ask, you aren't going to know. Take the time to find the agency that makes sense for you and matches your desire. Ensure that the agency you are looking at provides a training program to help you become a top producer.

You also need to make sure that you have enough money to start your business. Having a cash flow is important, especially for the months when business may slow. Leads are the biggest factor in your business and will not be consistent, so you need to be prepared for those instances.

Question 18

Can insurance agents work from home?

Accepted Answer

Yes, insurance agents can work from home. In fact, in-office agents aren't much different than their remote counterparts. As long as you have a good internet connection and a computer, you can basically sell any type of insurance from life, health, auto, property, casualty, and so on.

Question 19

How does an insurance company make money?

Accepted Answer

Insurance companies make money in two ways: by charging premiums and then reinvesting those premiums. Premiums are the money individuals pay to an insurance company in exchange for insurance coverage. Part of this money needs to go back directly to consumer costs, but there is a portion that can be assessed and invested.

Question 20

What does an insurance agent do on a daily basis?

Accepted Answer

An insurance agent generates leads and prospects, gives advice on and sells insurance policies, and manages claims and policies on a daily basis. Here are some details on the common daily activities of an insurance agent:

Question 21

What is a mutual insurance company?

Accepted Answer

A mutual insurance company is an insurance company that is owned entirely by its policyholders. Any profits earned are either invested back into the company or get reimbursed back to the policyholders. In contrast, a stock insurance company is owned by investors who hold stock, and they will receive any profit.

There are pros and cons to choosing a mutual insurance company over a stock insurance company. Opportunities for reimbursement are great, but one con is that it can be difficult to raise capital which makes growth opportunities rare.

Question 22

What role does math play in the insurance industry?

Accepted Answer

Math is used in the insurance industry to set premiums, determine risks, and stay competitive.

Statistics are used to determine the likelihood of obtaining clients. Part of this process involves setting the premiums to sign clients, and still making a profit. Statistics are also used to determine the chances of a client switching companies. Numbers are crunched to create the best possible scenario to keep the client.

Frequently asked questions about insurance agents

Questions about becoming an insurance agent