First of all, becoming a life insurance agent is easy. There are no educational requirements beyond a high school diploma. Some states require you to take a licensing course and pass an exam, but the truth is that they're relatively easy. Becoming a licensed insurance sales agent requires passing a state licensing exam and meeting all other application criteria.
While the path has a few steps, you can confidently complete each one and be on your way to becoming a life insurance agent. Most life insurance companies have no formal education requirements to become agents. While many prefer college graduates, this general rule of thumb is constantly overlooked in favor of suitable candidates. In addition, no previous experience in the insurance industry is required because most medium and large insurance companies have in-house programs to train their sellers on the products they will sell.
Most states require you to complete a pre-licensure class. Many of them can be taken online or through a face-to-face course. Requirements vary by state, from a one-day class to 20-40 hours of online training. You must have a high school diploma or GED, at a minimum.
However, a college education, especially in sales and marketing or business administration, can help you build trusting customer relationships. The skills you learn throughout your university career will help you grow. You'll also need to know state-specific insurance guidelines to help customers accurately. Becoming a life insurance agent requires some preparation and professional knowledge, but with planning and study, it can be a rewarding career.
Since independent life insurance agents are not required to work for a single insurance provider, they enjoy several benefits compared to captive agents (who work full-time for a company). All of the steps to becoming a licensed life insurance agent are important, but passing the state exam to become a licensed life insurance agent can be one of the most stressful. Insurance agents are currently licensed by the state or individual states in which they will sell insurance. A life insurance agent specializes in providing insurance coverage in the event of a customer's death.
Even if a pre-licensing education course isn't required, you'll still have to pass the state life insurance exam. Let's say your company allows you to sell auto and home insurance policies in 20 states in addition to your own. If a career in life insurance sales is something you want, take your time and wait for the right opportunity at the right company. More than any other factor, including education and experience, life insurance agents must possess a fighting spirit.
If you think a career in life insurance sales is for you, there are a couple of steps you should take to find your first job. Some, such as California, require that you complete 20 hours of pre-license training to obtain a life insurance license. The insurance company will assess your suitability for the product you are selling and the target market you intend to reach before appointing you as an independent agent. Captive and independent agents can sell policies from start to finish, including binding insurance coverage.
Generally, a life insurance agent receives between 30 and 90% of the amount paid for a policy (also known as a premium) by the customer during the first year. Therefore, while you can work as a life insurance agent without these licenses, you will have limitations on the type of life insurance you can offer customers.