Hello and welcome!
Today we’ll be taking a deep dive into Life Insurance Agent Jobs, a very important post in the health insurance industry.
It will give you a better understanding of this kind of job type.
We will also be looking at the difference between life insurance and health insurance agent jobs, so you know which is which.
Once you have read this guide, you will get a better insight into:
If you’re interested in this line of work, give this article a read, all the way to the end.
So, let’s begin, shall we!
What Does a Life Insurance Agent Do?
Working as a life insurance agent is one of the many insurance-related jobs you can do.
Are you wondering whether this is a good career choice for you? If so, then we’ll let you know all about the day-to-day workings in regards to this line of work.
With the world going through the Covid pandemic and the uncertainty of life worrying everyone, a lot of people are eager to protect their families and loved ones.
As a life insurance agent, it will be your job to sell policies to clients.
These policies are designed to pay the insured person’s beneficiaries and amount when the said insured person passes away.
Believe it or not, this is an important job. It involves interacting with numerous people from all walks of life.
So, if you have a knack for dialogue and an interest in marketing, this is the job for you!
The insurance agency will require you to pursue potential clients on a daily basis.
This can either be over email, cold calling, or even social media.
However, it’s important to always convince the person to have a head-to-head talk.
As a sales representative, preparing slides and presentations can do wonders.
This will make it easier for you to explain the different coverage options and long-term goals.
In the insurance industry, the amount of paperwork that will come your way is going to be huge.
You’ll need to be on your toes, constantly updating the beneficiary records, underwriting, processing insurance policies, and applications.
Of course, everyone has different needs and requirements.
Each client will require a separate product to suit their needs, so this will involve a lot of number crunching and calculations.
You need to be good at conversations in order to convince people about why they need life insurance.
This will ensure that you get a lot of referrals from happy clients as well.
After all, the life insurance product is all about preparing for the unexpected.
Additionally, once a client signs up for the policy, the life insurance sales agent will also be involved in processing the insurance claims in case the worst does come to pass.
Responsibilities of a Life Insurance Agent
- In order to excel in this profession, it’s all about providing the best customer service possible
- A full-time agent is required to not only maintain the existing client base but also seek new clients for the insurance company
- It’s all about providing advice and coming up with the best suitable life policies that pay out when the insured client passes away
- Agents are required to perform insurance needs analysis for clients, such as looking at their financial standing and recommending the correct products
- Act as intermediaries between the clients and the insurance companies
- Give in detail information to clients regarding insurance coverage
- Managing life insurance renewals
What Are the Requirements of a Life Insurance Agent?
Recruiters are always sending out job alerts to hire new talent.
When it comes to becoming a life insurance agent, it has less to do with academics and a lot to do with meeting the licensing requirements.
A lot of insurance carriers are looking for talented agents who can work as independent contractors as well.
So even if you have a full-time job elsewhere, you can take on the job title of life insurance agent and sell life insurance as well.
Yes, you won’t be working with team members or have a specific work location, but this sales job will give you the freedom to pursue your goals on your terms.
You’ll be working as a facilitator and representing more than one insurance company.
Depending on the client’s requirements, you can match insurance policies with the company that offers the best coverage and rates.
However, they are both important to succeed in this profession.
Life insurance licenses are different for every state.
So you’ll have to look up the licensing requirements where you’ll be working.
However, job postings usually have the following requirements listed:
- Completed an associate or bachelor’s degree program in financial services
- Licensed to work in the state
- Registered with FINRA, Financial Industry Regulation Authority
- You should have excellent selling skills
- Possess good analytical skills
- Near perfect communication skills
1st Step: Pre-licensing Education
Before getting licensed, you need to complete a pre-license education course.
People who are working part-time can complete this course online as well.
There are many third-party financial institutions that offer prospective insurance sales professionals a way to schedule their studies to fit their busy schedules.
You can also undergo training programs to learn more.
There are certain required hours for pre-license education, and these vary by state.
Even if a state does not require pre-license education, it is imperative to clear the state life insurance exam.
2nd Step: Life Insurance License Application
This is where you’ll need to fill out the application for your insurance sales license.
It is important to do so accurately without omitting any information as each applicant undergoes a background check.
If you have a criminal record, mention that too, as leaving it out will send a bad message on your part, especially if it is discovered later during the background checking process.
There are a few states that require you to clear the licensing exam prior to applying for the license.
In this case, the testing center shares the results directly with the state agency.
3rd Step: Go Through a Background Check and File Your Fingerprints
Because this line of work is sensitive, states require that all applicants get fingerprinted and complete a background check.
This is usually done at a state department or agency, but you’ll have to set an appointment via call or email.
As you are the applicant, the fingerprinting fee will be paid by you, which can be anywhere from around $35 to $75.
Your background check will either be performed after you submit your fingerprints or online beforehand.
The applicants need not involve themselves in the background checking and fingerprinting process as these are usually performed by a third party.
4th Step: Take the Licensing Exam
If you have completed the pre-licensing education course, it will be of great help when taking the exam.
Passing the exam can be stressful, but it’s the most crucial step in becoming a licensed life insurance agent.
The exams typically cover:
- Specific policies applicable to life insurance
- General insurance terms and concepts
- Different types of policies
- State insurance regulations
- Tax considerations
- Taxes and insurance concepts
- Requirements to maintain an insurance sales agent license
- State rules, regulations, and statutes (vary state to state)
5th Step: Application Review and Licensing
Depending on the state, it can take a few days or weeks for your application to be reviewed and the background check performed.
Once the process has been completed, you will be notified in accordance with the results and the new license sent to your address.
When applying for jobs, it would be best to save your new license on your computer and smartphone for easy and quick access. Also, save your NPN number and license number as well.
Working as a Life Insurance Agent
Here are a few key points when following the career path of a life insurance agent:
This profession can be different for every individual.
The job description for each insurance company can vary, but the requirements remain mostly the same.
You can take on this job part-time for a flexible schedule in case you’re pursuing a high school diploma.
Working with an established firm can have several incentives and benefits.
A lot of people can confuse life insurance with a health insurance license, so make sure to let them know what insurance plans you’re offering.
This is especially important as life insurance entails that the beneficiaries get paid when they die.
Depending on the type of policy and circumstances, the policyholder can get a cash-value policy to provide finances for children’s education, retirement income, and other benefits.
The earning potential is huge, especially if you’re a good salesperson and can maintain a big client base.
Agents also offer consultation services to help their clients in minimizing risk factors when nearing retirement.
Life insurance agents can also offer other financial products such as:
- Comprehensive financial planning services
- Estate planning
- Setting up pension plans for new businesses
- Retirement planning
Other services also include:
- Prepare and maintain records and reports
- Helping clients settle their insurance claims in case the policyholder(s) experiences a loss
With life becoming so uncertain during the pandemic, people are looking for ways to ensure that their loved ones and family are taken care of in the event of an unforeseen event.
This is a tricky subject when talking to clients, so you should have really good people skills to make your sales pitch, helping in removing any doubts and concerns.
However, as a life insurance agent, it is your job to understand the needs of potential clients and offer them insurance policies that would suit the client’s finances and lifestyle.
Whether you’re working as an independent agent or for an insurance company, choosing this career path can be a great choice for your future.