How to Become an Insurance Agent | StateRequirement

Becoming a licensed insurance agent is a great way to advance your career.

The sale of insurance policies requires an insurance agent license issued by your state. the type of insurance you will market will determine which license(s) you need.

Reading: How to get insurance agency

Whether you want to open your own agency, sell and service policies for a national supplier, or work as a salesperson for a small business, becoming an agent is the necessary first step in making your dream come true. . a reality.

Follow the steps below to get your licenses and learn how to become an insurance agent and get started today!

See also: Auto Insurance Claim Denials – ValuePenguin

how to get your insurance license

The first step to becoming an insurance agent is obtaining your insurance license. As mentioned above, the license or licenses you need depend on the types of policies you want to sell.

Because each state has different steps and guidelines for becoming licensed, you may find more value by reading your state’s insurance licensing guide.

what types of insurance licenses do you need?

There are two licenses insurance agents obtain:

  • property & accident insurance license – car insurance, home insurance, commercial insurance, etc…
  • life & health insurance license – life insurance, annuities, health insurance, etc…
  • Most general insurance agents choose to obtain both licenses. Some agents (such as life insurance agents) do not have any plans to sell auto or home insurance and therefore only need the life and health insurance license.

    We recommend finding out which license you need first, working on just that one, and then coming back for the other license at a later date.

    See also: Auto Insurance Claim Denials – ValuePenguin

    See also: Auto Insurance Claim Denials – ValuePenguin

    pre-licensing insurance education

    Depending on the state, you may be required to take an educational course prior to insurance licensing. This is a course that can be taken online or in person to prepare you to pass your insurance licensing exam. The length of this course depends on your state and the different lines of license you wish to pursue. In states that do not have a prelicensing requirement, people typically choose to take a course to study for the exam. this is wise, as these tests can be difficult, especially if you don’t come prepared.

    See also: Auto Insurance Claim Denials – ValuePenguin

    insurance license exams

    After your pre-licensing course, you are now ready to take the insurance licensing exam. these exams are generally between 80-160 questions, obviously depending on the state.

    You’ll need to take an exam for each line of insurance you want to get, which means in some states you may need to take up to four exams total (although most only require two).

    Exam fees have a wide range with some states costing around $40 per attempt, while others can cost upwards of $150+ per attempt. this is the number one reason to come prepared for your exam.

    Insurance exams in all states follow these guidelines:

    • Proctored: You will take this test at a professional test center with a proctor who will supervise you
    • Timed: You generally have about two hours per exam
    • multiple choice: These tests give you one question and four possible answers to select from
    • closed book: you will not be able to bring any study materials into the building when you take the exam
    • As mentioned above, these exams can be difficult, but with the right amount of study with the right courses or materials, they can be passed on the first try.

      See also: Auto Insurance Claim Denials – ValuePenguin

      license application and background check

      Each state has its own license application process. these applications can usually be completed online and have a fee ranging from $30 to $200. some states require this before your exam and others after, so be sure to check the steps for your individual state.

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      All states will conduct some type of background check while reviewing your application. some will also require fingerprint data to be taken prior to being licensed. this is typically run through a third party and carries a fee of around $30, give or take.

      If you have questions about background checks or any other detailed licensing questions, you can find the contact information for your state insurance department on your state’s licensing page.

      See also: Auto Insurance Claim Denials – ValuePenguin

      finra securities licenses

      If you’re working to become a life insurance agent or financial advisor, you’ll need a securities license in addition to your state’s insurance license. A securities license is required to sell securities, a common job function for both financial advisors and insurance agents. The process for obtaining your securities license begins with knowing the right securities license for your role and career goals.

      Selling life insurance or other stock market-linked retirement products will require a federal license from the Financial Industry Regulatory Authority (FINRA). in most cases, series 6 & Series 63 licenses are what you need to obtain to sell these products.

      The sie exam, which demonstrates your basic knowledge of the securities industry, will be a qualification you must complete before attempting to earn your series 6 or series 63.

      Some brokers choose to obtain their Series 7 rather than Series 6 license as this allows them to market and sell a much broader line of securities products. The Series 7 exam, however, is one of the most difficult exams Finra offers, so make sure you understand which license best suits your needs.

      See also: Auto Insurance Claim Denials – ValuePenguin

      insurance agent requirements

      The qualifications and prerequisites to become an insurance agent are actually very few compared to other jobs. In addition to the license, you will need to have a relatively clean record, excellent interpersonal skills, and a willingness and ability to learn.

      Do I need a degree to be an insurance agent?

      A degree is not required to obtain an insurance license or to sell insurance.

      However, depending on the job you are taking, the insurance company or agency offering the position may have a different set of requirements.

      If you’re looking to open your own insurance agency, you’ll essentially have to run your own business. having knowledge of how to run an organization will be a great asset to you and your team, but does not necessarily require a business degree.

      Working for an agency as an insurance producer (which most people also call an insurance agent) usually doesn’t require any college experience. The agent you’ll be working with may have specific requirements and qualities you’re looking for in a sales associate, but a title isn’t usually on that list.

      how long does it take to become an insurance agent?

      Since there are several steps to becoming an insurance agent, let’s break this down in sections:

      • get your insurance licenses: three to six weeks
      • find a job as an insurance agent – two or more weeks
      • get your finra licenses (optional) – four to eight weeks
      • These figures are estimates and are not guaranteed in any way. finding the right job could potentially take much longer than two weeks. use your best judgment to give yourself enough time to get things right.

        See also: Auto Insurance Claim Denials – ValuePenguin

        how much does it cost to get an insurance license?

        This number will vary greatly from state to state. To find the correct answer for your case, you should refer to your state’s licensing page.

        Here’s an example of a state with mid-range rates:

        • Pre-licensing education (life and health license): $200
        • pre-licensing education (property and casualty license) – $200
        • Insurance exam fee (life and health license): $62 per attempt
        • Insurance exam fee (property and casualty license) – $62 per attempt
        • fingerprinting fee – $31
        • license application fee (all lines): $100grand total: $655
        • There’s a good chance that the company that hires you will help or reimburse you for these fees, so be sure to ask about this when you’re interviewing for a position.

          See also: Auto Insurance Claim Denials – ValuePenguin

          Is being an insurance agent a good career choice?

          Being a licensed insurance agent is a great career choice for all types of people. Young people see insurance sales as a great way to add flexibility and increase the size of their network. more experienced individuals can build on the network they already have and use career to tap into their savings and drive big growth.

          benefits of being an insurance agent

          Choosing a career in insurance has many benefits. Here are some reasons why you might consider becoming an insurance agent.

          • Potentially Unlimited Salary: Depending on your level within an agency or position with an insurance company, your compensation may include commissions on your sales. This means that the more you sell, the more you earn. homeless!
          • Low barrier to entry: A license and a hunger to learn and work hard are the only things you need to get started as an insurance agent.
          • flexibility: Insurance agents often work at the time of day that works best for them. this means you have the ability to work outside of standard 9-5 hours.
          • leverage: If you plan to own your own insurance agency, you can leverage the work of other people in addition to your own. If you can find a sales method that works well for your team, you can scale it up as much as you want!
          • Networks: Building and growing your network is one of the biggest success factors for an insurance agent. the possibility of meeting important people in your area is a sure thing. in fact, he is likely to become an important figure in his community.
          • helping people: There is no doubt that the more time you spend selling insurance, the more impact you will have on people. When you give someone a claim check, you’re giving them peace of mind. it’s more than just dollars, it’s a guarantee that they will be able to survive after a loss.
          • See also: Auto Insurance Claim Denials – ValuePenguin

            These are just a few examples of the benefits of work. the longer you stay in this race, the more perks you’ll get.

            See also: Auto Insurance Claim Denials – ValuePenguin

            how much do insurance agents earn?

            The general take-home pay for an insurance agent varies widely based on a number of variables. Things like location, sales, company, experience, and many other factors influence what this job can pay. According to Glassdoor, the average base is around $40,000 per year. Many of these positions offer commissions based on your sales in addition to your base salary. your payment will depend entirely on your agreement with the insurance company or agency you write business for.

            See also: Auto Insurance Claim Denials – ValuePenguin

            Is it stressful to be an insurance agent?

            Whether insurance is stressful or not is entirely depending on your temperament and external factors from your agency. some agents who handle the day-to-day may find almost no stress in their job, while others may not have as strong control and find the job much more demanding.

            sales targets can sometimes be a source of stress for insurance agents, but this depends on the culture and atmosphere of your specific agency. While interviewing with an agency, try to get a sense of the general mood of the employees so you can take their temperature before accepting the position.

            Another situation that could be considered stressful for insurance agents is claims handling. this can be a time of apprehension as clients may be unsure or fearful of what will happen to their financial situation. just know that you are in control of the situation and act with respect and tact, and you will get through this just fine.

            frequently asked questions about becoming an insurance agent

            how can i find a job in insurance?

            The best place to find a job or start your insurance career is to use our insurance job board. If you need to update your resume before you apply, check out our guide on writing an insurance resume.

            See also: Auto Insurance Claim Denials – ValuePenguin

            Do insurance agents charge by the hour?

            This depends on your agreement with your agency. some agents are paid by the hour, others by salary. these can also be combined with commission splits or bonus structures. There are many ways to compensate an insurance agent and there doesn’t seem to be one prevailing method.

            If you own an agency, you will almost certainly be paid a split commission with your insurance company. this can be supplemented based on age or performance of your agency.

            See also: Auto Insurance Claim Denials – ValuePenguin

            Can insurance be sold without a license?

            not. all states require a license to sell insurance. You must also be properly licensed for the type of policies you advertise.

            Example: If you only have a life insurance license, you cannot sell auto insurance, but you can sell a term life insurance policy.

            See also: Auto Insurance Claim Denials – ValuePenguin

            Is the insurance license exam difficult?

            The national average pass rate for first-time test takers is around 50%. Success rates vary by state, license types, and test preparation company. we see that people who study with a pre-licensing education course tend to do better on the exam than those who use fewer study materials.

            See also: Auto Insurance Claim Denials – ValuePenguin

            can insurance agents work from home?

            Working from home is a dream for many employees today. Fortunately, there are some agencies that accept remote staff. These positions are not as readily available as office positions, but they can be found. Check out our job board for open positions in your area.

            The information on this page has been compiled from a multitude of sources and was last updated in August 2022.

            the information on this site is not guaranteed or guaranteed to be correct, accurate or up-to-date. staterequirement and its members and affiliates are not responsible for any loss, monetary or otherwise. staterequirement is not affiliated with any state, government, or licensing agency. For more information, contact your state insurance authority.

            When readers purchase services discussed on our site, we often earn affiliate commissions that support our work. learn more

            See also: Limited Pay Life Insurance: What You Need to Know (2022)

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