Frequently Asked Questions About Insurance Agents

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.

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:

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

There are two types of insurance agents; captive agents are employed for one insurance company and must abide by that company's rules regarding whether they can work remotely. Independent agents, however, are not tied to any one company and can sell policies for multiple insurance companies, usually from the comfort of home.

Top companies that hire remote insurance agent positions include:

• Anthem. The nation's largest not-for-profit managed healthcare company, and Anthem now serves one in nine Americans.Conifer Health Solutions.An independent healthcare services company working to improve their clients' financial and clinical performance and improve quality and access to healthcare.CVS Health. The nation's largest provider of healthcare services and prescriptions, managing over 9,500 pharmacy stores, a thriving online pharmacy, and 1,100 MinuteClinic locations.Lincoln Financial. Manages more than 9,000 professionals in insurance and beyond. Its core business areas include life insurance, annuities, and group and individual retirement plans. National General Insurance. They offer commercial and personal automobile insurance, recreational vehicle and motorcycle coverage, homeowners and renters' insurance, and supplemental health solutions, among others.New York Life. Headquartered in New York, New York, they offer a portfolio of products for life insurance, long-term care insurance, retirement, investment annuities, and mutual funds.

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.

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:

• Generates leads and prospects. Insurance agents spend a considerable amount of time generating leads and prospects. Since their compensation is typically commission based, an insurance agent is always looking to grow their client list and contacts in the insurance realm. They might do this by emailing prospective clients or cold-calling leads.

• Gives advice on and sells insurance policies. An insurance agent sells an insurance company's various products to people that can use them. Insurance agents act as intermediaries by providing information about available policies to potential buyers. Insurance agents have contractual agreements with the firms they work for.

• Manages claims and policies. An insurance broker seeks to find the best fit for their clients when it comes to insurance, but their job doesn't stop there. They must also manage any claims that arise, and this can happen on a fairly consistent basis. They must update clients on information and policy changes to ensure customer satisfaction.

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.

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.

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.

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:

"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.

You should hone in on your interest in helping people when unexpected and unfortunate events arise in their lives. Highlight your desire to go above and beyond in terms of your customer service, as this is a trait that employers in this field look for in job candidates. You also may want to focus on the department or area you want to grow in.