If you’ve ever spoken to a life insurance agent, there’s one thing you may have noticed: they don’t just sell policies. They also sell peace of mind. Life insurance agents have a critical role in helping individuals and families secure their financial future.
If you would enjoy helping others while building a stable, rewarding career, this is a profession that will offer both purpose and potential. Here’s a closer look at what life insurance agents do and how to become one.
What’s The Work of a Life Insurance Agent?
At its core, a life insurance agent’s job is to match clients with policies that fit their financial needs and goals. But the work goes far beyond just selling insurance. That’s why every agent has to invest in a top-quality life insurance license course from a highly rated provider like RocketCert to ensure they have the skills they need for success in this field.
As an agent, you begin every insurance selling process by assessing a client’s financial situation (income, debts, dependents, and long-term goals). This makes it easier to recommend a suitable coverage. You will also have the noble task of explaining complex terms like premiums, beneficiaries, cash values, and more in plain language to help your clients make informed decisions.
You can choose between representing a single company (captive agent) or multiple carriers (independent agent). As a captive agent, you will usually have access to company-specific training resources and marketing support. On the other hand, independent agents enjoy greater flexibility and can offer a wider range of policy options.
In addition to selling policies, life insurance agents also do the following:
- Help clients review and update their coverage.
- Network within communities to find leads.
- Build long-term relationships to ensure policies keep meeting changing needs.
- Stay current on industry trends and legal regulations to protect the companies they work for.
In short, you will have to combine your financial expertise with strong interpersonal skills, which is a mix that keeps the job challenging and fulfilling.
How Will You Earn?
In most cases, life insurance agents earn their income through a combination of initial commissions and renewal commissions.
After selling a life insurance policy, an agent will almost immediately get their initial commission. The amount is calculated based on the premium paid by the policyholder. Initial commissions typically range between 50% and 100% of the first year’s premium. The exact percentage is usually determined by the type of policy you’ve sold as an agent and the company you work for.
In addition to the initial commission, you will also get a renewal commission on every policy that’s still in force. This type of commission is lower, and typically a smaller percentage of the premium (1% to 10% per year). You will keep earning a renewal commission for the duration of the policy, as long as it’s active (the premiums are paid).
How to Become a Life Insurance Agent
If you’re interested in joining this field, the process is usually straightforward but requires dedication. Here’s what to expect.
1. Meet the Basic Requirements
You’ll need to be at least 18 years old and hold a high school diploma or equivalent to start this process. Many states also require a background check before you’re licensed.
2. Complete Pre-Licensing Education
Every state has different pre-licensing education requirements. The courses are usually 20 to 40 hours long, which translates to approximately 2 to 4 weeks if you study part-time, or 1 to 2 weeks if you study full-time.
Other factors that will affect the completion time are personal pace and the course format (in-person, online, or hybrid).
3. Pass the Licensing Exam
After you’ve completed your coursework, you will have to pass the state’s licensing exam. Consider setting aside approximately 1 to 2 weeks for focused study. Your test will cover a variety of topics such as policy types, insurance regulation, and more.
Use the preparation period to review course material, take practice exams, and get as comfortable as you can with the content.
4. Submit Your Application
Once you pass the exam, you’ll have to submit your application to the state’s Department of Insurance. This process can take anywhere from just a few hours to several days. You will then receive your licence within a couple of days or weeks.
5. Continue Your Education (Post-Licensing)
Many states require you to renew your licence after a period (normally every 1 to 2 years). You’ll want to make sure you’re up-to-date when it comes to continuing education (CE).
Get Started Right Away
Working as a life insurance agent will offer you a mix of stability, flexibility, and personal fulfilment. Beyond the financial gain, you will get the satisfaction that comes from being able to help families be ready for life’s uncertainties.
So, if you ask us, it’s worth the effort. Ready to dive in? Head over to rocketcert.com today for expertly written and fully narrated courses that will equip you with the information you need to excel in this field.
