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What It Takes To Be An Insurance Agent: A Beginner’s Guide

Trying to find a line of work after graduation is never easy. You’re often met with harsh realities, and you might even consider working in a different field that isn’t relevant to your studies. The market doesn’t align with your qualifications in plenty of cases, and you have to adapt or you’ll be left behind. One of the best fields to get into, regardless of your studies and qualifications, is the insurance world. It offers a lot of great opportunities, and there is much room for advancement and growth. Here’s what it takes to become an insurance agent.

What kind of insurance do you want to sell?

This is the first question that you have to ask yourself before delving into the insurance world. There are dozens of different insurance policies out there, and the companies and career paths differ from one specialty to the other. For instance, auto insurance policies are the bestselling among the different available ones, because everyone needs them. In some countries, it is even illegal to drive without having an auto insurance policy. So, this is the kind of angle you need to consider while planning your career path as an insurance agent.

Yet, you also have to take the market into consideration. How fierce is the competition? How many big companies sell this particular type of insurance? These are all questions that you have to ask before you start an insurance career so you could make a solid plan. 

Do you need a certain education? 

One of the best things about the insurance link of work is the fact that you don’t need a certain education or graduate degree. Believe it or not, you can actually become an insurance agent with a high school diploma, though finding employment might be a bit more challenging in that case. There are plenty of websites that you can visit for more info on how to get into this field, and most would tell you that your education isn’t really the deciding factor. You should know, though, that you will be required by most states to get licensed to work as an insurance agent. 

This entails a pre-licensing training course so you could learn about the business. The course includes details about insurance ethics, state laws and how they apply to the various policies, and the different types of insurance that you can work with. After that course, and some studying, you will need to take the licensing examination and pass. Each state might have different requirements for the pre-licensing course as well as examination, so you should inquire about that first. After you do get the license, you will have to renew it every few years if you want to keep working as an insurance agent. 

Finding Work

You should know that some states require that you be sponsored by a company so you could get licensed as an insurance agent. You will obviously have to go work for the company if they sponsor you and pay for the examination fees, which would make things slightly easier since you won’t have to worry about finding a job after you’re licensed. In any case, you have to find a company to work with so you can be eligible to sell insurance policies. 

You generally have two options to work as an insurance agent. You can work with just one company, selling its products, and they provide you with the necessary training and support to grow and become a better insurance agent. If you sign a contract with just one provider, you can only work with them for a certain time. The second option is working as an independent insurance agent, which allows you to work with several insurance providers, selling each company’s policies to various clients. This obviously grants more flexibility, but you don’t get as much support from any of those companies, and you also have to make a name for yourself in the market, which isn’t as easy as it sounds. 

How much can you make? 

The insurance business can be very profitable, and if you do all the right things, you could earn quite a decent living. The average agent earns around $48,000 a year according to stats by the Bureau of Labor Statistics, with the highest 10% making over $116,000 and the lowest making around $26,120 annually. To make more, learn what small businesses look for in a business insurance agent.

Becoming an insurance agent is pretty simple if you think about it. It is not necessarily easy, but there aren’t any obstacles stopping you from becoming one if you wanted. It’s a job with great potential, and you can quickly grow in that world if you play your cards right. The most important step is taking your time choosing the type of insurance policies you want to sell to avoid having to switch a few months or years down the line. 

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