Do Insurance Agents Make Good Money?
The financial service industry offers one of the most lucrative career paths today. Relatively inexperienced individuals can start their own financial intuitions from scratch if they have the business acumen, but it takes many sleepless nights to market your service in order to hold your own in the competitive industry. Insurance agencies, as well as independent insurance agents, can make up to $100,000 right off the bat, and this only scratches the surface of how much they can earn in the long run. However, this type of business is quite challenging. While insurance agents can make heaps of money, this is not always the case. Here's what you need to know:
Required Skill Set
While most careers likely require years of experience in a relevant field, starting from scratch as an insurance agent is possible with the right skill set. If you're not keen on starting your own business, and are looking for employers, most companies are willing to hire individuals with a little sales background that can help them market the company's services. If you think you have what it takes to sell insurance plans, you can browse this site for job offers that suit your skills. On the other hand, even if you match an employer's requirements and get hired, you have to take a 25-50 hour course to become a certified insurance agent. This also requires passing a state-administered test.
Independent Agents VS. Employees
Applying for insurance agent jobs is not as lucrative as running your own business, which of course, goes without saying. When you look for companies to hire you, make sure to check reviews by rating websites and agencies. However, if you think you have the skills to sell your services on your own, you can start your own firm, as it takes very little funding, and primarily depends on your marketing talents and your professional network.
Either way, insurance agents do not earn a stable income. As an employee, your primary source of income is through commissions, while as an independent freelancer or business owner, your commissions are much higher. Starting out by working for reputable firms is always a wise choice, as this can help you build a network that you can later make use of, if you ever decide to start your own business.
Kinds of Insurance
Not all insurance agents make heaps of gold; only those that sell expensive insurance plans do. The most lucrative plan to sell is life insurance, while health and auto insurance are not remotely as profitable to sell. Life insurance agents market their services to businesses, employees, families, and other individuals and institutions that seek to protect affected individuals from financial loss as a cause of the insured party's death.
There are also two types of insurance agents: captive, and non-captive. The former sells insurance plans from a single company, which would be the case if you work for an employer. A freelance or an independent agent, on the other hand, represents different companies, and is known as a non-captive agent. Unsurprisingly, the latter is a much more profitable career choice, as agents are not limited by a number of sales, and can thus make money in bulk by representing different institutions.
One of the most common hurdles that insurance agents face is stigma. No matter how compelling the insurance plans you're selling are, potential customers will try to haggle over fixed prices and may accuse you of being a scammer, while you'll face plenty of rejection before you finally land a good deal. Whether you're a captive or a non-captive agent, this is a common obstacle that you'll face profusely before you can hit the jackpot.
This is why so many individuals in this field may burn out quickly, seeing as networking can be very stressful. However, for those who have the endurance, the ceiling for financial rewards is sky-high. Because your income is based on commissions, your hard work determines how much you make, which can earn you a six-figure income per annum.
An independent insurance agent can certainly hit the jackpot if they have the talent to market insurance plans. However, succeeding in such a competitive field doesn't come without a cost. An insurance agent faces plenty of obstacles, including the stigma that views insurance specialists as con men, as well as applicants that demand far more than an agent can offer. While an insurance agent is certainly able to bring home stacks of cash, few people manage to hold their own in the industry, and many end up burning out, and giving up before they can succeed.