FAQ

How to Sell Insurance | StateRequirement

Have you been thinking about a job in insurance? Insurance sales is one of the most accessible fields a person can get into. Whether you’re an entry-level employee with no work experience or a veteran with many years of insurance sales, there’s a position that’s right for you.

In addition to being extremely accessible, working for or owning an insurance agency can be a very rewarding career. in fact, many people who enter the insurance industry end up making it their lifelong career.

Insurance agencies are usually small businesses with a very dedicated and family-oriented environment, and building relationships with their clients and helping them when they need it is an extremely rewarding undertaking.

what type of insurance will you sell?

Before you launch into your insurance career, you need to know what types of insurance you want to sell. Are you thinking of selling car insurance? homeowners insurance? life insurance?

There are many different types of insurance available, all of which require state-mandated insurance licenses to sell.

Some of the common types of insurance are:

  • auto insurance – This is the most common type of insurance policy sold, as all states require all drivers to have insurance on their car or truck when They drive on public roads. Auto insurance protects drivers from the financial impacts of causing or being involved in a car accident. selling auto insurance requires ownership & accident license.
    • Homeowners Insurance: When a person buys a home and takes out a loan through a bank, the bank will require the buyer to have homeowners insurance for the home. entire loan. . This type of coverage will help pay to repair or replace the structure and all of your personal belongings in the event of catastrophes such as fire, extreme weather, or property accidents. selling homeowners insurance requires a property & accident license
      • Renters Insurance – Just like a homeowners policy, renters insurance will help replace all of your personal belongings in the event of tragedy. however, it does not protect the home, because the tenant is not responsible for the structure. Renters are not required to have renters insurance unless it is a stipulation of the lease, but even if it is not required, this coverage is often very affordable and a very wise investment. selling renters insurance requires a property & accident license
        • Life Insurance: This is a policy that only pays in the event of a person’s death. it is meant to help the rest of the family maintain their quality of life if suddenly the policyholder is no longer there to provide financially. Selling life insurance is very different from selling home or auto insurance, as the subject of a person’s mortality can be difficult for some to deal with. Since this is the case, life insurance salespeople are generally more experienced in the insurance field and commissions can be very high. sanitary license. Depending on how the policy is structured, it may also require a securities license from Finra.
          • Health Insurance: This is a very controversial coverage in today’s world, as it is under the scrutiny of many high-level political figures. Most of the time, health insurance is sold by larger companies, although some smaller agencies may also be involved in this process. You’ll often find payroll companies selling health insurance as a supplement to their accounting and employee services offerings. health license.
          • While there are other types of insurance on the market, these are the most frequently referenced policies. the same licenses mentioned above will cover many of the other categories of insurance not mentioned in this article.

            get your insurance license

            As mentioned above, to sell insurance you will need to have an insurance license.

            Insurance laws are administered at the state level, which means that each state has its own set of policies and requirements related to insurance licensing.

            Fortunately, we’ve done the research for you and put together free step-by-step guides on how to get your insurance licenses in each and every state.

            Most of the time, the steps you’ll need to follow are:

            • apply for your license – this application is usually completed online. application fees can range from $20 to $300 depending on the state and type of license you are applying for.
              • fingerprinting and passing a background check – Not all states require a fingerprint to get your license, but all have a background check process that starts with the application license. some prior felonies or misdemeanors may delay or prevent your eligibility for a license. Check with your state insurance department for more information on eligibility.
                • complete a pre-licensing insurance education course: Most states require that you complete a certain number of hours of pre-licensing education before you can earn your license. Not all states have this requirement, but these courses are a great way to prepare for the insurance licensing exam.
                  • Pass the Insurance Licensing Exam – All states require applicants to take and pass an insurance licensing exam for each different type of license they will hold. Exams are multiple-choice, timed, and proctored. they can range from 50 to 200 questions and have a common pass rate of 50% to 60%. These tests should not be taken lightly, as they also have a fee associated with each attempt. Take some time to read our insurance exam guide, and then get your study materials to better prepare.
                  • work with an insurance company

                    Once you have the proper insurance license, you will need to find a company to partner with to sell insurance. This can be achieved by starting your own business or working for an agency. Since starting your own agency is a very big and complicated task, we will only cover working for an existing agency in this article.

                    Finding a job with an agency is a lot like finding any other job. however, the upside is that many insurance companies pressure their agencies to subscribe to an “always hiring” mentality, so finding an opening near you is usually not a difficult task.

                    If you’re applying for an insurance sales job, be sure to highlight any previous sales or customer service experience on your resume when applying for the position. You’ll likely speak on the phone and in person regularly with current and potential clients, so the hiring agent will want to know if you’re comfortable and confident with this type of assignment.

                    how to find your insurance sales strategy

                    every agent needs a strategy to make sales. Even if you’re lucky enough to work at an agency that generates a lot of inbound traffic, you’ll need to have a plan in place when the phone rings.

                    However, most agents and agencies aren’t lucky enough to have the phone “just ring.” The “if you build it, they will come” strategy is the driving force behind many failed companies in the insurance game. you need to know what to do to make the phone ring.

                    Some different strategies an agency can try include:

                    • cold calls
                    • potential internet clients
                    • telephone wires
                    • advertising envelopes
                    • door to door
                    • internet advertising
                    • recommendation marketing (word of mouth)
                    • gifts
                    • contests
                    • local events
                    • There are an almost endless number of ways to market your insurance agency beyond these listed ideas. some will work better than others. some will work for some agencies and won’t work for others.

                      The smartest strategy you can implement is to try different tactics to see what works and what doesn’t. when you find a method that produces results, attack it vigorously and keep trying!

                      take care of your customers

                      Sometimes when you’re in the heat of a big sales push, it can be easy to forget about policies that already exist. the best insurance agencies take into account that for each of these policies there is a living person behind.

                      People want to feel like they’re being taken care of, not just in a grievance situation, all the time. stay in touch with your customer base at least semi-regularly. You don’t have to be trying to sell them something every time you call them, but you can make them feel like part of the agency family by calling them and asking if they have any questions or saying “happy birthday.”

                      Because insurance typically pays renewal premiums the same as new policies, it’s imperative that you keep your customer retention high. It is always less expensive to keep an old customer than to gain a new one. Plus, people’s lives are always changing, so making sure they always have the most appropriate coverage is good for both the client and the agency.

                      frequently asked questions about selling insurance

                      how do you sell insurance?

                      To sell insurance, you must first become a licensed insurance agent. Next, you need to choose what types of insurance policies you want to provide to your clients. life insurance (or combined life and health insurance) and property and casualty insurance are two of the most common types of insurance you can sell.

                      is insurance sales a good career?

                      yes, entering the insurance industry is a rewarding career. Insurance agents can choose to be paid based on their commissions or a combination of salary and commission. you have unlimited earning potential, job flexibility, and can do much more besides sell insurance.

                      For more information on jobs in insurance, visit the staterequirement job board.

                      Do I need to take an exam to sell insurance?

                      yes. Taking an insurance exam is the first step in obtaining your insurance license. Once you pass your insurance exam and get your license, you’re ready to choose the types of insurance policies you want to sell and grow your career.

                      Learn how to pass the insurance exam on the first try with our study guide.

                      Do I need to take continuing education courses when selling insurance?

                      You will need to take continuing education courses to renew your license. All states require insurance license holders to complete a minimum number of continuing education (CE) hours to maintain professional knowledge.

                      Can I sell insurance without a license?

                      not. While some states offer temporary and/or emergency licenses for some types of insurance (like Texas, for example), you cannot sell insurance without passing an insurance exam and obtaining your license.

                      Can I sell insurance from home?

                      yes. You can sell insurance from home or remotely, depending on your current work setup (ie, if you have an out-of-state client or if you have remote work provisions from your company).

                      Remember that as an insurance agent, you are responsible for generating new business for your insurance company. You’ll need to communicate effectively with prospects to sell insurance plans and build connections.

                      The information on this page has been compiled from a multitude of sources and was last updated in July 2022.

                      the information on this site is not guaranteed or guaranteed to be correct, accurate or up-to-date. staterequirement and its members and affiliates are not responsible for any loss, monetary or otherwise. staterequirement is not affiliated with any state, government, or licensing agency. For more information, contact your state insurance authority.

                      When readers purchase services discussed on our site, we often earn affiliate commissions that support our work. learn more

                      See also  How to get construction jobs from insurance companies
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