Insurance Sales Professional: A Roadmap to a Rewarding Career
While the insurance industry sometimes gets a bad rap, millions of people rely on it as a safety net for significant and unexpected losses. And before they can benefit from insurance, they need someone with the right skills to help them purchase the right policy.
A career in insurance sales offers great opportunities for those with the right skills and mindset. Below, we’ll provide you with a roadmap to embark on a fulfilling journey as an insurance sales professional.
What Does an Insurance Sales Agent Do?
Before diving into any career, you first need to understand what exactly the job is. In other words, what falls under the insurance sales job description?
Insurance sales agents solicit, sell, and negotiate insurance policies. For the average person, picking the right insurance policy can be complicated and confusing. A big part of an insurance salesperson’s job is to gather information about a prospective client’s financial situation to determine their coverage needs. They need to be able to explain the benefits of one policy over another, as well as all potential features.
An insurance agent’s job doesn’t end with the sale of a policy, however. In insurance sales, you maintain a relationship with existing clients, handle their renewals, maintain records, assist them with the claims process, and analyze their current policies to suggest additions or changes.
Types of Insurance Sales Jobs
Your exact duties as an insurance sales agent will vary based on the type of job you have.
There are a few ways to divide up insurance sales jobs. One division is who you work for. In most cases, there are three options:
- Captive agents work exclusively for one insurance company, selling and managing their policies.
- Independent agents sell policies for multiple companies, but they still ultimately represent the insurance companies.
- Insurance brokers work for brokerage firms, working on behalf of a client’s interests to help them choose the best policy at the right price. Since brokers don’t represent any insurance company, they have to hand clients off to another agent to finalize the sale. In return, brokers get fees, which are a portion of the commission. They may also charge a fee to the client.
The other way to divide insurance sales jobs is by which types of policies you handle:
- Individual vs. Commercial
- Personal policies are designed for individuals, couples, or families.
- Commercial policies are designed for the needs of businesses.
- Lines of Authority
- Property and/or Casualty lines are policies that cover financial losses related to property damage. For businesses, this can also include losses related to malpractice lawsuits, worker’s compensation, and product liability.
- Life and/or Health lines are policies that cover financial losses from health complications or death.
How Much Money Do Insurance Sales Agents Make?
According to the U.S. Bureau of Labor Statistics (BLS), the median insurance sales salary was $59,080 in 2023. The top 25% make $83,420 or more, while the bottom 25% make $43,440 or less.
Your potential salary from insurance sales will depend on which categories of insurance you sell and who you work for.
Life insurance has the highest insurance sales salary according to ZipRecruiter – an average of $88,968 nationwide. Commercial insurance agents average $58,198 a year. Health insurance agents and those who sell all personal lines make an average salary in the mid-$50s, while those who specialize in property and casualty make $49,167.
Additionally, your status as a captive agent, independent agent, or broker will change your pay structure, and, therefore, your potential earnings. Captive agents earn a salary plus commission bonuses, while independent agents are paid almost entirely on commission. This means that independent brokers make much more per policy and have greater earnings potential overall, but they have no guaranteed income.
How To Become an Insurance Sales Professional
How do you become an insurance agent? How do you succeed? What does the insurance sales career path look like in the long run?
Step 1: Reflect & Research
When considering a career, it’s essential to take a step back and evaluate whether it aligns with your interests, strengths, and long-term goals.
Do you have the right skills and strengths for a career in insurance sales? Important abilities include:
- Analytical skills for understanding the technical aspects of policies and evaluating the needs of clients.
- Communication skills, including listening to clients’ concerns and clearly explaining technical concepts in ways they understand.
- Self-starting initiative, since you’ll have to actively seek out new clients and work independently.
- Self-confidence that allows you to maintain your composure and persuade clients.
Once you’ve assessed your skills, you should conduct thorough research to understand the insurance industry, its products, and the role of an insurance sales professional. Pay attention to what insurance sales agents do on a daily basis. Would you enjoy and excel at this kind of work?
If you’re interested in insurance but hesitant about sales, another career option to consider is insurance claims adjusting. It has a similar educational and licensing path but is more investigative in nature.
Step 2: Meet Educational & Training Requirements
A college degree isn’t necessarily mandatory to becoming an insurance agent. It’s possible to get a job as an insurance agent as long as you’re 18, have a clean criminal record, and have earned a high school diploma or the equivalent. Only a third of current insurance agents have a bachelor’s degree, according to the BLS.
Some employers will prefer a bachelor’s in business, finance, or a related field. However, it can be a good idea to gain experience in the field and look at your options before you fully commit to the expense.
You do need a state-issued license to become an insurance sales agent. Typically, you earn your license by passing a fingerprint-based background check and an official licensing exam.
In most states, you’re required to take a certain pre-license curriculum before you qualify for the exam. However, even when it’s not legally required, completing pre-license coursework can give you important information, skills training, and context – both for passing your licensing exam and having a successful career.
Step 3: Get Hired
Some of the most valuable insurance sales tips for beginners are for getting hired – not just for any job, but for the right job.
One thing to consider when doing your initial job hunt as an insurance sales agent is to check out the reputation of the companies to which you’re applying. Visit your state insurance commissioner’s website to check the complaint history. Look for companies that maintain an A rating and avoid any hint of a multilevel marketing scheme. Aim for larger, more established companies. This can save you from getting involved with an organization that will hurt your resume, not help it.
Secondly, don’t be discouraged if you have trouble finding a position at a reputable company right away. Insurance agents have a high turnover, so they’re always looking for new hires.
Finally, persistence and attention to detail are key qualities in the success of an insurance sales agent, so many companies look for these qualities from the very beginning of the hiring process. Follow all instructions to a tee, fill out your paperwork carefully, highlight any sales or customer service experience already under your belt, and make sure you follow up with weekly phone calls. Some insurance recruiters secretly require follow-ups from candidates before they’ll offer an interview.
Start Your Insurance Sales Agent Career Online
Becoming an insurance sales professional can be a rewarding career choice for anyone with the right skills and a positive attitude. By following the sales agent career path outlined above, you can find financial stability, professional growth, and the satisfaction of helping people protect what matters most to them.
The great news is that you can get started right now! As a pre-licensing education provider with over 20 years of experience, we offer insurance sales pre-licensing courses that are 100% online and self-paced so you can start preparing for your new career today despite your busy schedule.
Enroll today!
