How to become a licensed insurance agent
While some high school graduates have made their mark in the insurance industry, the majority of licensed insurance agents are college graduates.
Each state has specific requirements for licensing. You will take an insurance license exam in the field of your choice, such as automotive, life, or others. You can apply online to take the exams.
Although selling insurance is a relatively easy field to break into, it is not easy to excel. You need a lot of business acumen with a mix of marketing skills.
Why do insurance agents need a license?
There are several types of insurance. Insurance agents need a license that covers each type of insurance.
The insurance industry requires the proper licensing – states require it. It goes without saying that a license is also required by each individual insurance agency.
How long does it take to get an insurance agent license?
For each type of insurance license, someone must complete a combination of classroom training and independent learning. There is a minimum number of hours required.
How quickly you work through the different types of insurance is up to you. You may be working full time and taking insurance classes in the evenings. Or you could take courses to get insurance licenses full time.
If you don’t yet have a college degree and are taking courses, focus on economics, finance, risk management, and marketing.
Become a licensed insurance agent in 7 easy steps
Your first decision is, what will be the working structure?
Captive Agent – This person will sell insurance for a business.
Independent Agent – This person sells insurance for a number of businesses.
1. Choose the type of insurance agent you want to become
Most agents gradually get all the licenses they can, but they specialize.
For example, someone may choose to get a life insurance license and be a life insurance agent only, or focus on health insurance. Life insurance and health insurance fall into the broad category of personal insurance.
Here are other types:
- Damage (also personal insurance)
- Vehicle insurance (personal vehicles, motorcycles, recreational vehicles)
- Commercial insurance
- Disability insurance
- Dependence insurance
2. Choose the insurance products you want to sell
Property & Casualty policies protect against fire, theft, traffic accidents, and other damage.
Trade policies can include property and risk, as well as liability.
Medicare specialties may include emphasis on long term care and disability benefits.
States follow specific guidelines that a person must adhere to in order to obtain a license. States require that you take specific steps and pass the state exam in each area.
3. Pass the pre-license requirements
Before registering for an exam, most states require that you complete a pre-licensing course. Pre-licensing training will provide basic training in the field. A specific requirement is that you pass a background check.
Prerequisite courses typically cost between $ 200 and $ 2,000.
4. Pass your state exam and get your license
After the pre-bachelor’s course, you can study your specific area of ââinterest. Then you will register to take your state’s insurance licensing exam in that specific area, so that you can meet the licensing requirements.
Once you have passed the state exam, you can apply for a license through the state. Insurance license exams cost between $ 40 and $ 150, depending on the type of insurance.
You must pass the state exam before you can sell insurance.
5. Submit job applications
Once you have completed your studies and exams, you are ready to apply to an agency. Make sure your application is complete, especially the result of each exam you passed.
Check your application and correct any errors. Paperwork is of the utmost importance in the field. Errors in your application may disqualify you for a second interview. You can also search insurance agents on LinkedIn for marketing and employment opportunities.
6. Get an appointment with an insurance company
Once you start working, expect to work at least 40 hours per week. Many of these hours can be evenings and weekends, to accommodate your clients’ work schedules.
In addition to having the appropriate licenses, you will be required to complete your application by submitting to a background check.
Once all of this is done, you can start making sales for insurance franchise companies or major small business insurance providers.
7. Comply with continuing education requirements
Continuing education requirements vary from state to state. The most common required by many states is 24 hours of continuing education – one course, one seminar – every two years.
The National Association of Professional Insurance Agents Often offers webinars and provides information on education options.
How much does it cost to become an agent?
Pre-license courses can cost anywhere from $ 200 to $ 2000. Courses and study materials for each type of insurance can cost anywhere from $ 60 to $ 300. And the fees for each state exam can cost anywhere from $ 40 to $ 150.
After you pass a specific exam, the fee for your state practice license application can cost anywhere from $ 30 to $ 200. The background check fee can cost anywhere from $ 30 to $ 100.
Do you use a calculator for this? Remember to add the cost to get a college education.
Remember that these costs vary by state.
How much does an insurance agent earn?
The average agent earns around $ 80,000 per year. The salary range goes from $ 18,000 to $ 186,000.
The salary depends on the type of industry you serve, as well as your location in the country.
Your salary can be a salary, plus a commission. Sometimes your length and history of sales with agencies determines how you will be paid.
What are the qualifications required to become an insurance agent?
Now, you better genuinely love people and help people. Agents are often recommended because of the service they provide to other clients. The aspects of service that customers value the most are quick responses and ease of access. You must be available when services are needed.
Here are some other skills you should have as an insurer:
- Good with math
- Good at listening to people
- Able to respond quickly to questions and complaints, willing to contact a customer at any time.
- Able to do basic photography
- Some who are on time for each appointment