While some high school graduates have succeeded in the insurance industry, most licensed insurance agents hold college degrees.
Each state has specific requirements for licensing. You’ll take an insurance license exam in your chosen area, such as auto, life, or other. You can apply online to take the exams.
While entering the insurance sales field is relatively straightforward, achieving excellence in it can be quite challenging. To succeed, you must possess strong business acumen combined with effective marketing skills. If you’re looking for information on how to become a licensed insurance agent, these skills are essential for thriving in this industry.
Why do Insurance Agents Need a License?
There are many types of insurance. Insurance agents need a license that covers each type of insurance.
Getting the proper license is required by the insurance industry – states require it. So, it stands to reason that licensing 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 mix of classroom training and independent learning. There is a requirement for a minimum number of hours.
The speed at which you progress through the different types of insurance is up to you. You may be juggling a full-time job while attending insurance courses in the evening, or you might be pursuing insurance license courses on a full-time basis.
If you don’t yet have a college degree, and you’re 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 the work structure be?
Captive Agent – This person will sell insurance for one company.
Independent Agent – This person sells insurance for a number of companies.
Choose What Type of Insurance Agent You Want to Become
Most agents gradually get all the licensing they can but specialize.
For example, someone may choose to get a life insurance license and only be a life insurance agent or focus on health insurance. Life and health insurance fall under the broad category of personal lines.
Here are some other types:
- Property-casualty (also personal lines)
- Vehicle insurance (personal vehicles, motorcycles, RVs)
- Commercial Insurance
- Disability insurance
- Long-term care insurance
Pick the Insurance Products You Want to Sell
Property and Casualty policies protect against fire, theft, auto accidents, and other damage.
Business policies may include property and casualty, and also liability.
Health insurance specialties may include focuses on long-term care provisions and disability.
States follow specific guidelines someone must adhere to in order to get licensed. States require that you take specific steps and pass the state exam in each field.
Pass the Pre-Licensing Requirements
Before you sign up to take an exam, most states require that you take a pre-licensing course. The pre-licensing training will provide a basic background in the field. A specific requirement is that you pass a background check.
Pre-licensing courses typically costs from $200 to $2,000.
Pass Your State Exam and Get Your License
After the pre-licensing course, you can study your specific area of focus. Then, you’ll sign up to take your state’s insurance license exam in that specific field so you can fulfill the licensing requirements.
After successfully passing the state examination, you can submit your license application to the state. The cost of insurance licensing exams ranges from $40 to $150, depending on the specific type of insurance.
You have to pass the state exam before you can sell insurance.
Submit Job Applications
Once your studies and exams are complete, you’re ready to apply to an agency. Make sure your application is complete, especially the result of each examination you’ve passed.
Check over your application and correct any mistakes. Paperwork is of utmost importance in the field. Mistakes in your application may disqualify you for a second interview. You can also look into LinkedIn for insurance agents for marketing and employment opportunities.
Get Appointed with an Insurance Company
Once you start work, expect to work at least 40 hours a week. Many of those hours may be in the evenings and on weekends to accommodate your customers’ work schedules.
In addition to having the proper licenses, you’ll be asked to complete your application by submitting it for a background check.
Once everything is complete, you can begin making sales for insurance franchise companies or top small business insurance providers.
Complete Continuing Education Requirements
Continuing education requirements differ from state to state. Most commonly, many states mandate 24 hours of continuing education, which can include courses or seminars, every two years.
The National Association of Professional Insurance Agents often offers webinars and provides information about education options.
How much does it cost to become an Agent?
The pre-licensing courses may cost from $200 to $2000. Courses and study materials for each type of insurance may cost from $60 to $300. The fee for each state examination may be from $40 to $150.
After you pass a specific examination, the fee for your application to the state for licensure may cost from $30 to $200. Background check fees may cost from $30 to $100.
Are you running a calculator for this? Don’t forget to add in the cost to obtain a college education.
Remember that these costs vary by state.
How much does an insurance agent make?
The average agent makes about $80,000 annually. The salary range goes from $18,000 to $186,000.
The pay is dependent on the type of industry you serve and your location in the country.
Your pay may be a salary, plus commission. Sometimes your length of time and sales record with agencies determines how you will be paid.
What qualifications are needed to become an insurance agent?
To succeed as an insurance agent, it’s essential to enjoy interacting with people and helping them genuinely. Agents often receive recommendations based on the quality of service they offer to their clients. Customers particularly value timely responses and easy accessibility. Therefore, it’s crucial to be available when your services are needed. If you’re wondering how to become a licensed insurance agent, remember that building strong relationships and being responsive to client needs are key components of the role.
Here are some other skills you should have as an insurer:
- Good with math
- Good at listening to people
- Able to quickly respond to questions and claims, willing to contact a customer at any time.
- Able to do basic photography
- Some who is on time for every appointment
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This article, "How to Become a Licensed Insurance Agent" was first published on Small Business Trends
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