Learn How to Become an Insurance Agent
As we are bombarded by so many types of insurances, there are many people behind the scenes that we see and those who we do not see. For many when the words insurance shows up on television commercials, the Internet, among our stacks of mail, we ordinarily think about car, life, burial, and health. Very little do we concern ourselves with insurance agents unless we have to file a claim, or we are seeking a career to become one.
What is an Insurance Agent?
The career of an insurance agent includes selling the policies or product of a company to individuals. There are those agents who work from door-to-door collecting policy payments on a monthly basis. Many individuals like that personal feature of an insurance company for it gives them a one-on-one relationship with the company’s representative. This type of rapport is normally found in small communities and not the larger areas. Other names associated with insurance agents include:
• Financial Planners – They advise people as to the best ways to handle their finances and set financial goals. They are licensed to sell financial products.
• Financial Advisors – Financial advisor is another name for stockbrokers or account executive who buys and sells securities for their clients.
• Captive Agents – These are employees of a specific insurance company.
• Insurance Brokers – This job includes selling insurance products for more than one insurance company.
Education that is a plus when considering working in this field includes but not limited to, is a bachelor degree or a MBA. Licensing is also required, dictated by each state according to the type of insurance a company will be selling. If you are going to handle security products, then you will need a FINRA certification.
Duties and Responsibilities of an Insurance Agent
As an insurance agent, an individual is required to advise the potential client about the risk of not being covered under some type of insurance plan whether it is life, burial, hospitalization, etc. The ability to sell the product has to be a strong feature in the insurance business. Long hours can be associated with this career, usually 40-60, especially for those who are just starting out and trying to establish themselves.
Salary Expectations
There are three ways that an insurance agent is paid – straight pay, straight pay plus commission, or straight pay plus bonuses. According to the Bureau of Statistics the following salary expectations exist:
• Annual wages of insurance sales agents in May 2008 were $45,430
• Middle 50% earned between $33,070 and $68,730
• The lowest 10 percent had earnings of less than $26,120, while the highest 10 percent earned $113,930 or greater.