How To Become An Independent Insurance Agent

How To Become An Independent Insurance Agent

Independent insurance agents do work to sell different insurance types to the customers. They do this by explaining the different available types of available policies while they assist the customer in choosing the one that is ideal for their needs. This is not the same as Captive insurance agents that work for all insurance companies. The independent Insurance agents often represent quite several companies and giving the clients a wide range of available options.

Also, Independent Insurance Agents may sell at least one type of insurance such as health, property, business, and long-term care. These types of Insurance agents tend to make their money through commissions made on sales. Thus, the more policies they sell, the more money they can make. This is the main reason why the main focus of insurance agents is in increasing their clientele base. It is also vital that they provide the needed quality services to these clients.

How to become an independent Insurance agent

For you to become an Independent Insurance agent there are two things to consider. First is that you must have the requisite training and education, the second is the stage of finding a job. Even though there are no specific requirements most of them do have at least a high-school diploma. For better job prospects, a college degree could also come in handy. It is even better if you got a degree in a business-related field such as finance, economics, mathematics, statistics, marketing and business administration. Some colleges even offer a degree in certain aspects of insurance.

For you to start work as an independent insurance agent, you must get licensed by the state where you intend to sell the insurance packages. You should know that the requirements for licensing are different from one state to the other. Many of the states also need potential Independent Insurance agents to complete certain courses and pass certain exams that deal with the insurance laws in such a state. You should also seek to learn the ropes required to become an independent Insurance agent from experienced people.

What Are The Core Functions Of An Independent Insurance Agent?

You ought to know the core functions of an insurance agent if you aim to maximize the journey. Here are a few functions to be mindful of:

1. Expansion of customer base:

This function requires that the independent insurance agents make contact with possible clients to bring in new customers.

2. Explanation of policies:

Independent insurance agents get saddled with the responsibility of explaining policies and assisting clients in choosing the different available policies. They also assist potential clients in the course of the selection process.

3. They help in understanding the needs of the clients:

Independent agents usually interview prospective or new clients to gain a higher level of understanding of the present coverage.

4. Policy renewals:

Usually, independent insurance agents help clients in the policy renewal process per time.

What Are The Steps To Take In The Journey To Become An Independent Insurance Agent?

There are a few things you must first do in your journey to become an independent insurance agent. Here is a breakdown of some of the things:

Decide on the product you want to sell

There are several personal insurance and commercial insurance product policies out there. For instance, the personal lines of insurance products provide coverage for families and individuals. The insurance covered here includes home insurance, motor vehicles, and life insurance. Commercial insurance agents on their part focus more on providing coverage to businesses using policies that range from property insurance to general liability insurance and errors and omissions coverage.

Know the licensing requirements of the state where you are

You must know the products you intend selling before you begin the licensing process. This is to enable you to know the proper license for the insurance agent business. the different license names will be different depending on where you are.

There are two most common types of licenses out there are the life, health and accident license and the property and casual license. The property and casual license are for agents who aim to serve clients who need a home, auto, and business insurance. But, life, health, and accident license are for agents that aim to serve persons who need insurance related to life events such as accidents, life insurance, and health insurance.

Also, your choice of career path may need that you get many licenses. You will also need to get many licenses. But you will have to know the specifics from the state licensing department or the company you intend to represent.

The main reason why you need to get licensed is that you need the license to be able to talk about the products and make sales. Every state often has a unique rule for licensing. People who function without the use of a license may face legal actions or penalties.

Take the licensing examination

Most of the states often need that you complete a class in preparation for licensing. Most of these classes get taken via the internet or in person. The requirements are also different depending on the state and can be a one day class or a 40 hours online class. After you must have met the requirements for the pre-exams, the next thing would be to schedule a date for your official insurance exam. The exam is always proctored by an outside company.

There are instances where you will need to show the proof of your completed training class before you take the exams.

While expecting the insurance exams, you should know that the process is quite easy. This is especially in a situation where you completed the pre-exam requirements and got prepared for the exams. When you arrive at the time scheduled, you will get assigned to a computer. The test questions are usually in a multiple-choice format. After you must have written the exams, you will immediately know if you have passed or not. If you did not pass on the first attempt, you can always try again.

Background check

The moment you have discovered that you have passed the licensing exam, you will have to submit the required licensing applications to the authorized department. Some of the states will need that a background check gets carried out. This may involve biometrics. The moment you get licensed you will be able to market and sell insurance products.

Link up with an insurance company

You have to get engaged by an insurance company before you can have the authority to sell their products. For you to have an appointment and binding authority by the company you need to complete an application. This is then recorded on the state insurance license.

Search for clients

Now that you have a license, it is time that you begin prospecting for clients. Several agents start by writing their insurance and prospecting to their family and friends. This is the ideal way for you to know how the system works. It makes you feel more comfortable dealing. It becomes a good idea for you to start marketing the agency. You may also need to join the local chamber of commerce and come up with an online presence. There are several options available and may need you making some mistakes until you find what works for you.

What Are The Most Important Skills Required To Succeed In This Career Path

For you to be a successful agent, you must be very analytical so that you can be able to know the needs of a client. You should also be a good communicator who can discuss the policies which meet the needs of the clients. You also need to be a self-starter that can find new clients while also keeping records. You also need to have the required level of confidence to call each potential client and talk about the rewards of purchasing new product lines.

What Is The Financial Prospect Of An Insurance Agent?

The wages which an insurance agent makes are always linked to the commissions earned and this accounts for the variation in earnings. The wages are also quite different depending on the skill of the agent and his experience. The top ten percent of agents make over $125,000 every year. The bottom percentile earns a little over $27,000.

Conclusion

The journey to becoming a successful independent insurance agent is one that is both challenging and rewarding. This is subject to the input you are willing to make into it. The career of an insurance agent is one that has several possibilities depending on how far you intend to go. Recent studies show that the prospects of people in this industry are one that looks to take an upward trajectory sooner rather than later.