Hi there, welcome to this informative guide on how to be a part-time life insurance agent.
Perhaps you have been thinking of doing this and are wondering how to start and what you should take note of?
We have you covered to help you begin this rewarding career path.
In this article we have covered the following:
Selling life insurance is a rewarding career if you are considering making that extra dollar on the side as a part-time insurance agent.
It will take a lot of hard work and dedication, but is there a job in this world that doesn’t require that?
Well, there is also the matter of job satisfaction.
Here we go!
Introduction
There is something very satisfying about helping people find the perfect life policies for themselves and their families.
You may not quit your full-time job yet but when your part-time life insurance agent job kicks in so well and you become successful in raking in those large commissions, you will eventually quit your job and focus on where the success is.
But for now, you don’t need to go into selling insurance full-time because you have the option of part-time.
The best thing about beginning part-time is that you will not worry about earning those high commissions to match your primary income.
You will also have time to learn how the business works without the pressure of securing the commission because you already have your main earner in place.
So, how do you become a part-time life insurance sales agent? We can show you how to make an exciting career in this.
What A Part-time Life Insurance Agent Does
As a part-time life insurance agent, you will be responsible for introducing life insurance products to the customers.
You will help every customer you meet through the insurance sales process and offer any additional help they might need even after buying the policy.
The following are the things you will do as a life insurance agent even as one acting on a part-time basis:
- Calculating premium payments
- Taking phone calls from new and current customers when working
- Handling the various types of paperwork
- Knocking on doors and cold calling
- Sifting through an existing database and singling out potential insurance customers
Remember, most insurance companies prefer full-time employees.
Unless you become an independent agent, you might get lucky and get hired by an insurance company on a part-time basis.
The part-time hours are usually different with every company and some might include anything from a couple of hours during the week and some weekend hours.
It is up to you to come up with your own schedule that will make this work successfully for you.
The Salary of A Life Insurance Agent
Most life insurance sales jobs whether part-time or full-time are commission earners with no base salary and no benefits.
Most insurance companies or employers classify their sales representatives as independent contractors and never as staff employees to avoid giving them a minimum wage or any benefits.
This is why even if you put in hours of work, you are not guaranteed payment for those hours.
If you don’t make any sales, then you will not get any earnings.
There are companies that will offer their sales representative that employee status and give them a base salary along with benefits.
But, in such cases, these employees have to meet very high targets and if they miss their monthly target twice, the job ends.
The best way to go about this is as an independent part-time agent looking for their own clients and earning their own commission.
This way the pressure to perform will be minimal and you will have ample time to learn the workings of the business.
Remember your efforts and ability to clinch sales will determine how successful you will become as a life insurance sales agent.
Benefits of Being A Part-time Life Insurance Agent
Joining the business of selling life insurance has its perks that aren’t found in other careers. Some of these benefits that should inspire you are as follows:
Easy To Be
Becoming a part-time life insurance agent is easy because in most cases all you will need is a high school diploma.
There are states that will require candidates to go through a licensing course and pass the licensing exam.
The licensing course and exam are not difficult hence making the whole process very easy.
You can become a part-time agent in no time and begin earning those commissions.
Countless Job Prospects
The life insurance sales jobs are a lot and many jobs sites have posting from insurance companies always looking to increase their agent ranks.
Most companies have commission-based pay with no income but they have no limits when it comes to hiring and will give all qualified life insurance agents an opportunity to work and grow.
There are even companies that will refund you all the costs you incurred while getting your license the moment you attain a certain level of insurance sales.
With no lack of opportunities, this is an industry that presents a lot of positive possibilities to anyone intending to join.
The Impressively Large Commissions
Life insurance selling is one of the best-paying career options.
It is an insurance category with the largest commission in the entire insurance industry.
Compared to an auto insurance policy which is between 10% -15% of the premium in the first year, and Health insurance which is around 7%, life insurance pays 100% or more of the premium.
This means if you make a sale of a life policy with a $100 monthly premium then you will make $1200 in commission on that policy in your first year.
Another great thing is that there are life insurance companies who will pay you an advance on the 12 months commission once you sell that policy instead of paying you as it is earned.
A Passive Income Opportunity
The best part of being a life insurance agent is that you have the potential of making a lot of money in the future.
Apart from the commission earned from selling a policy, you can still earn renewal commissions on that policy for as long as it exists and it’s being paid for.
As long as the policyholder keeps paying their monthly premiums, you will get a percentage, and with life insurance, they will keep paying for most of their lives.
Imagine if you sold hundreds of life insurance policies you can earn a lot of renewal commissions and earn a decent living without having to struggle to sell new policies again.
Most agents who have been selling life insurance for years reach a point where they no longer have to work because they are earning passively and earning well.
So, what might begin as a part-time job might turn into a major earner if you do it right,
Becoming A Successful Part-time Life Insurance Agent
The life insurance industry is actually one of the most difficult industries to succeed in, according to research by the Bureau of Labor Statistics.
It is a highly competitive environment but can also be a very tough environment if you are a new agent just starting out and intending to earn commissions from insurance sales.
It is not surprising that the life insurance career has a high burnout rate.
It has been established that more than 90% of new life insurance agents leave the business within their first year.
But, if you do this right and with the right attitude, you will not be one of the quitting statistics.
The major qualifications for becoming a part-time life insurance agent are great sales skills and a legitimate license to sell life insurance.
Note that the requirements for getting that life insurance license will change in each state.
However, most of them will require you to complete a short training course, pass the licensing exam and make a licensing fee payment.
Some states will also require sponsorship from an insurance company or employer.
If you had previous experience selling other types of insurance you will also have an added advantage.
After getting your licensing right, it is now time to become the part-time agent you were targeting.
The best thing is that with part-time you have little time to sell insurance which means fewer mistakes.
If you want to succeed in this industry there are a few things that you might need to take note of and they are as follows:
Have The Right Mindset
The moment you begin selling life insurance, your mindset will play a major role in determining your success in this field.
You have to begin with a positive mindset that is looking forward to success.
This should apply to everything you do.
Don’t allow room for failure thoughts no matter how many times you are disappointed.
Keep trying and think of ways to do things differently so that you can get positive results. Motivate yourself to win and you will eventually win.
Avoid The Dabble Attitude
The idea that you are just trying to sell life insurance just to see if it will work should not be encouraged at all.
If you have that kind of attitude, you are setting yourself up for failure.
The fact that you have a full-time job could be a major contributor to this thinking.
Even though you are a part-time insurance agent, you must put a lot of effort into all your dealings.
Maintain consistency when working on leads and work hard to regularly meet your clients.
This is called applying full-time effort in a part-time job.
This is a serious profession that requires commitment if you want consistently growing results. You can’t achieve that if you are “just dabbling”.
Master Your Professional Skills
Similar to other professions, you must master a certain skill set to achieve success.
It is not different in the life insurance industry.
You must keep yourself updated in the insurance industry by acquiring as much information as you can about it.
You can do this by reading books, attending webinars, undergoing training programs, and interacting with established professionals in the same field.
Improve your selling skills even as you equip yourself with industry knowledge.
Just like with most industries, the learning never stops and you become better the more you learn.
Have A Plan
Surely you don’t intend to remain a part-time life insurance agent for good.
You will eventually need a plan to turn your part-time insurance business into a full-time gig.
If you have such goals in mind then you need to create a plan that will lead to this significant full-time transition.
Patience will be an integral part of the process.
You will need time to hone your skills, build a client base and finally take that crucial time of converting into a full-time operator of the life insurance business.
Therefore, make a plan, create a schedule and stick to it.
Avoid Overwhelming Yourself
As much as you need to commit to the plans you have made and the schedule you have created, you must not go overboard and overcommit.
Establish a good work-life balance.
You must be in the right frame of mind and body to effectively answer calls from clients, address questions and concerns lest you end up delivering mediocre customer service that could kill your budding business.
Keep Yourself Organized
After creating a plan and a workable schedule, you must commit to them.
Having your full-time job and being a part-time life insurance agent can take its toll on you.
However, the secret is maintaining an organized system.
Make sure that things don’t spiral out of hand at any point.
You have two jobs and forgetting things can be a frequent thing.
To prevent this and other unpleasant scenarios from happening, it is important that you come up with a system to help you keep track of all the information about your part-time insurance sales job.
This way, you can always have a reference point whenever you need to.
You might want to have a notebook where you keep detailed notes, important tasks, client information, finances, and so on.
However, if you have the resources, you might want to think about investing in a CRM system which will really help simplify a lot of processes involving your insurance sales business.
You will have access to features that will effectively manage marketing campaigns, increase life insurance policy sales, make all application processes simple and improve your customer relations.
Whatever way you decide to choose to stay organized, ensure that it is effectively working for you. In the end, just ensure that you stay organized.
Always Meet Your Customers’ Needs
You might be a part-time life insurance agent, but your service to your customers must not be determined by that.
You must always meet all the expectations of your clients.
Being a part-timer, you might not be available during some hours but that should not be a hindrance when it comes to delivery to your clients.
The quality of your service should always be unquestionable and this means, quick responses and proper treatment of your customers.
To avoid any conflicts with your customers, the best thing to do is set expectations from the start.
Let them know the best times to call you and always assure them that you will return their calls in case they call and you can’t pick them up.
Your clients will probably not know that you are a part-time life insurance agent but that doesn’t mean that you shouldn’t communicate effectively with them.
Take client calls at every opportunity you get.
This could be during your breaks at your full-time job.
Make a great effort to communicate with your customers and they will no doubt appreciate it.
After all, communication is key in most relationships including business relationships.
Confidence Will Propel You To Greater Heights
Confidence will take you to places you have never imagined.
Wear it like a cloak in your dealings with your customers because you will effectively deliver the right message to your prospects when you do.
With confidence, you will convince any potential client you meet about the importance of taking life insurance and they will not only believe you but want to buy the policy as soon as possible.
You will sell a lot of life insurance policies and you will be on the road to success.
As a licensed insurance agent intent on making a mark in the industry, confidence is key in this business.
Keep The Energies Up
A highly competitive industry like the insurance industry requires a lot of effort and enthusiasm.
You must motivate yourself and make the most of every opportunity you get to sell insurance to a potential customer.
Remain consistent in your client meetings and never look worn-out and defeated even when the week has been the most hectic.
Your energy levels should always be on the higher side.
Conclusion
A part-time life insurance agent could be the best career path you have ever chosen.
As we have seen it is an industry with a high quit rate but it can also be quite rewarding.
With enough sales, you can have your own thriving life insurance agency and authorization from insurance carriers to carry out dealings on their behalf.
We have looked at what you must do to achieve success and the potential earnings when the business begins growing.
Just remember that it can begin as a part-time job and end up as a successful full-time job with an impressive passive income in a few years.
