Insurance is a vital part of our lives, and choosing a career in the insurance industry has many advantages. With a relatively easy entry into the insurance industry, great flexibility in choosing your working environment, and high earning and growth potential, there are many benefits to becoming an insurance agent. If you think you have what it takes to become an insurance agent, understanding the core responsibilities and education requirements are the first thing you need to do.
This article is a guide to four necessary steps you need to take to become an insurance agent.
1. Choose Your Insurance Field and the Type of Agent You Want to be
There are many big decisions to be made at the start of your journey. First of all, you will need to choose between the two types of agent you can be:
Captive Agent
Captive agents work with only one insurance provider for a specific period, with lower commission rates but extra marketing support. This setup means you’ll get more training time and help, but you will be limited in the insurance products you can offer. The job security also comes in as a bonus.
Independent Agent
Independent agents work with more than one insurance company and help clients to find the best policies and prices amongst numerous companies. This working situation leads to more flexibility in the products you can offer, but you have to take care of training or support. Once you have decided on the type of insurance agent you want to be, it is then time to move on to the kind of insurance you want to sell. There is both commercial insurance where you will sell to companies, and personal insurance where you will sell to individuals and families. In order to make the right choice, look into both options, and decide which suits you best.
2. Understand Your State Requirements
The next thing you will need to decide is where you want to work as an insurance agent. You are legally allowed to work in more than one state, provided that you abide by the specific rules in each state. Individual states regulate their own insurance licensing processes. The differences between their rules and regulations are significant, so you must take this into serious consideration when deciding where to sell insurance. If you are still unsure about the rules, contact each state’s insurance department to get a better understanding of the regulations, or visit their websites to compare different states.
3. Obtain Your Insurance License
Along with a criminal background check, pre-licensing courses are the typical requirement for most states – and these can be taken online or through in-person learning. Depending on the state and the type of insurance you are aiming for, the pre-licensing course will take anywhere from 20 to 50 hours of training. After you have fulfilled all the pre-exam requirements, it is time to schedule the official licensing exam.
The questions are presented in a multiple-choice format and are answered on a computer – and the results will be displayed on the screen as soon as you finish it. If you are unlucky the first time trying and do not pass the test, you can reschedule it, and so you will get multiple chances to obtain an insurance license and start working. Once you have passed the exam, you must submit the required licensing applications to the state licensing department, and once all the processes have been completed, you can begin your new career.
4. Apply to Insurance Agencies
Most new insurance agents tend to start out as captive agents working at an insurance agency. Doing so will ensure that you receive on-the-job training and enable you to work alongside experienced agents during your training period. This will help you to build your skills and learn how things really work in the field. While you have already passed the exam, make sure to keep up with your education, as individual states will require license and certification maintenance. Keeping up to date with these requirements is not only a potential legal requirement, but it is also an excellent way to demonstrate to clients that you are well-versed in your specialties.
A career in the insurance industry can be an appealing opportunity when you consider the benefits that becoming an insurance agent provides. Although requirements might vary by state, it can be a relatively simple process to become an insurance agent, especially when compared to other professions that require a license. To further speed up the process, it is vital to understand what to do and expect. If you are looking to enter the world of insurance sales, take these steps in this article into consideration, and start your journey today.