Insurance Agents are important for people who are looking to purchase life insurance. Life insurance plays an important role in a families financial future. In most households, it takes two people to bring in a sufficient income to help take care of a family. Life insurance can ease the minds of many people who work for a living to provide for their family. If anything happens to them, it could cause financial devastation to their families. Purchasing life insurance will ensure that if anything happens to them, their families will be well taken care of. Becoming a life insurance agent can be a rewarding career when a person knows that they are having a direct impact on helping to ease the minds of their clients. The salary for a life insurance agent can vary depending on the type of agent they are, and which company they work for. Many agents can make up to $45,000 a year.
Insurance agents who work for a single Insurance carrier are called captive agents who work under contract. Captive agents can make up to $39,000 a year. Broker agents are freelance Insurance Agents who can work for several insurance carriers. They are mostly paid on commission depending on how much insurance they sell. They can make anywhere from $39,000 and up to $68,000 a year. Independent Insurance Sales Agents will also work on commission, and can make $26,000 a year or more. Depending on how much life insurance they sell, they can earn up to $110,000 a year. Much of the salary for independent agents rely on job performance. The person is in control of their own earning potential.*
*According to the BLS, http://www.bls.gov/oco/
Job Description and Outlook
Life insurance will always be needed and counted on as long as there are people in the world. There will always be a high need for Insurance Agents. Insurance Agents sell several different life insurance policies to individuals and families who are looking for the right kind of coverage at a price that they can afford. The types of insurance that an agent can sell are life, long-term care, disability, health, and property and casualty insurance. Insurance Agents are also known as “producers,” and as producers of insurance, they must have skills and knowledge on how to present their material to potential clients that will create an interest for them to purchase insurance from them. Insurance can be sold to individuals, families, and businesses. The insurance will help to protect people from disasters, such as fires, theft, storms, vehicle accidents, and large financial losses from damage to property. For most businesses, the insurance can cover employees who have been injured on the job, medical malpractice, and liability claims.
An Insurance Agent will also be responsible for all of the paperwork, reports, and record keeping involved, as well as gaining new clients. Insurance Agents are also responsible for the clients they already have. If a client experiences a financial loss, they must help them to settle their claims.
Training and Education Requirement
College graduates with degrees in business, finance, and economics are highly sought after from Insurance Companies who are looking for experienced people with business and finance knowledge. Most college courses will have classes that teach students about insurance. There are also bachelor degrees at some college campuses that pertain to Insurance and Sales. Insurance companies prefer an Associates or a Bachelor’s degree in business, but they will also hire high school graduates who have a propensity to sell. Most insurance companies are looking for people with experience and background in sales. If a person has over ten years experience in direct sales, they would be an appropriate candidate to become an Insurance Agent. College students who have the technical background with knowledge about the insurance industry, are looked at highly. Selling insurance takes perseverance, knowledge, and good communication skills.
There are two certifications that are recommended for people who are looking to become Insurance Agents. The Certified Financial Planner and Chartered Financial Consultant certificates. The Certified Financial Planner certificate is given by the Certified Financial Planner Board of Standards, which stipulates that a person have experience in sales, a degree from an accredited college, and a passing grade on a comprehensive exam. The Chartered Financial Consultant certificate is given in Bryn Mawr, Pennsylvania at the American College. The American College expects Insurance Agents to attend eight courses of study that entails successfully completing a course in Life Underwriter Training Council Fellow. This training course will help to instill knowledge in the basic concepts of insurance.
The National Association of Professional Insurance Agents- This is an organization that opened its doors in 1931, and has helped train Insurance Agents to become professional independent agents in the United States, District of Columbia, as well as Puerto Rico. They are a company that believes in educating potential insurance agents about the concepts of insurance, keeping agents informed about new policies, and helping agents learn how to properly conduct their businesses, as well as helping agents in matters of legislation.
The National Association of Insurance and Financial Advisers- This organization has been available to offer help in areas of enhancing skills in business, professionalism, business ethics, as well as learning how to create a positive work environment conducive to the laws and regulations of insurance policies.
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