A Simple Guide to Becoming an Insurance Agent

As the United States faced massive unemployment during the COVID-19 pandemic, many Americans are on the hunt for new careers. Insurance is a wise choice as it’s one industry that’s always in demand, no matter what is going on. 

If you’re intimidated by the idea of becoming an insurance agent, you’re not alone. Take a look at this easy guide on how to become an insurance agent to clear things up.

1. Start By Choosing an Insurance Specialty

The first thing you need to do before taking your research to the next level—let alone before starting an insurance agent career—is to decide what kind of insurance agent you want to be. A few career paths out of many options include health, life, and auto insurance.

2. Be a Captive or Independent Agent

Once you know what your specialty will be, decide whether to be a “captive agent” and work with one often major company or to be independent.

Captive agents get more training and marketing help at the expense of freedom to work with multiple companies.

3. Licensing Is a Must Before Becoming an Insurance Agent

People get insurance as a safety net, so there’s no point in getting insurance from someone you can’t trust. Agent certifications and licenses required by state authorities and insurance providers help clients know they can trust the people they buy insurance from.

Choose Your Certification

There are various certifications for becoming an insurance agent, so pick the one best for your specialty. For example, prospective health insurance agents should take a look at an AHIP certification guide, sometimes along with others.

Take Classes, Study, and Take an Insurance Agent Exam

Once you pick an insurance certification, study up! Some people take classes, many of which are online for a low cost. You can also hit the books and manuals on your own.

In many cases, you’ll have to pay another fee for the exam and sign up by yourself.

Submit the Final Documents

Once you’ve passed the test, send the results and other application materials to your state’s licensing department.

You might need a background check. Know that many areas bar felons from becoming insurance agents, but some allow it. If all checks out, you’ll get your license after a brief waiting period that varies by state.

4. Partner With an Insurance Company

To sell insurance, you’ll apply to the company or companies that make products you want to sell. If they approve you, the state will print your binding authority on your license.

5. Insure Your Insurance Business

A final step before getting to work is buying commercial insurance. Disputes arise in insurance more than in many fields, so you’ll want protection.

6. Find Clients and Get Your Insurance Agent Career Going

At this point, you’re licensed, have a partnership to sell products, and have insurance. The next step is to find some clients and start selling.

One low-pressure way to get started as an insurance agent is by selling products to people you know. Once you’re comfortable with the process, advertise to pull in more business.

Fill Knowledge Gaps Here

After reading this article, you know the basics of becoming an insurance agent and can start your journey.

If you want to learn about other career and education options available now, you’re in the right place. Click on another article and fill gaps in your knowledge here.

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