Is it worth getting into insurance?
Insurance also offers good work-life balance, welcomes diversity, and is projected to grow in the coming years. With a career in insurance, you can make a difference while also enjoying a fulfilling and exciting career.
During a recession, insurance is more stable than other fields. That's because no matter the economy, people and businesses always need protection from risks. Employment with an insurance company or an independent agency offers greater job security than other industries.
Annual income for a life insurance agent can vary from as little as $28,000 per year to as much as $125,000 per year. How much money you can make selling life insurance will depend on a variety of factors, including your own ability to convert leads to customers, as well as the area in which you live.
The job itself is not hard BUT the workload is very heavy and can be pretty stressful.
One of the biggest reasons that insurance agents quit is the fact that they have unrealistic expectations. The insurance industry is huge, which leads many people to think they can easily make a large income by selling insurance.
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
It is not easy to make a living in insurance, but it is not as hard as you might think. As with any type of sales, becoming an insurance agent can be one of the best paying hard jobs or a terrible paying easy job. Dedicated agents will become successful at insurance sales, just like at any other job.
One of the primary reasons insurance agents can accumulate wealth is their commission-based income structure. Unlike salaried employees, agents earn a percentage of the premiums they sell to clients. As they build a client base and generate more sales, their income potential increases.
If you have a great work ethic and are willing to place yourself out there to establish relationships with clients, you will get more opportunities to earn a higher income. Selling insurance may even make you a millionaire.
Some agents, advisors, and multi-line agents made a million dollars in the first year they worked with us selling life insurance! While most of the others it took 2, 3, or more years to make a million dollars per year selling life insurance.
Why not to work in insurance?
The majority of this job involves dealing with clients, so if you don't like working with people, this might not be the career path for you. To gain clients, you will most likely need to make cold calls. If this stresses you out, it's something to consider before pursuing a career in the insurance industry.
As an insurance agent, you may think that being an introvert is a disadvantage when it comes to selling insurance. However, being introverted can be an advantage in this industry, as introverts often excel at building deep relationships and listening to the needs of clients.
An agent who is only out to earn a commission, regardless of the needs of the client, is not likely to last long in the business. Agents and brokers who listen carefully to what their clients and prospects say will be able to earn their trust, which is the hardest part of their job.
Insurance agents succeed when they prioritize their customers' needs over their own profits. The most commonly cited reason insurance agents fail is that they fail to listen to their customers and take the time to find the best product to suit their needs.
That is a 90% failure rate for new agents.
Most independent marketing organizations will train insurance agents on all the products they want them to sell. Then the independent marketing organization will train the insurance agent to ask a few questions and learn a sales presentation that just sells a product.
Cons of working in insurance sales
Many insurance agents are independent contractors, which means they don't qualify for base salaries. Even those who earn a base salary must supplement their income with commissions, which are paid based on sales and achieving certain quotas and goals.
- Loan processor. ...
- Insurance adjuster. ...
- Insurance agent. ...
- I nsurance broker. ...
- Loss control consultant. ...
- Underwriter. ...
- Actuary. ...
- Risk manager.
Best-Paying States for Insurance Sales Agents
The states and districts that pay Insurance Sales Agents the highest mean salary are New York ($104,850), New Jersey ($100,590), Massachusetts ($94,830), California ($92,670), and Minnesota ($90,490). How Much Do Insurance Sales Agents Make in Your City?
Insurance companies make money primarily from premium income, but they also invest the accumulated premiums in financial instruments to generate investment income. They also earn revenue from sources such as fees for policy services and commissions from partnering with agents and brokers.
Most businesses don't make any profit in their first year of operating. It could take anywhere from 18 to 24 months for your insurance sales to actually provide profit. Don't feel discouraged. Every small business owner has to clear this hurdle.
Is selling insurance a good career path?
Yes, selling insurance can be a good career for independent workers with strong sales skills. Sales agents often earn bonuses and commission, so their income potential depends on their talent.
The essential insurance model involves pooling risk from individual payers and redistributing it across a larger portfolio. Most insurance companies generate revenue in two ways: Charging premiums in exchange for insurance coverage, then reinvesting those premiums into other interest-generating assets.
| Annual Salary | Monthly Pay | |
|---|---|---|
| Top Earners | $98,197 | $8,183 |
| 75th Percentile | $76,000 | $6,333 |
| Average | $59,733 | $4,977 |
| 25th Percentile | $43,900 | $3,658 |
People like being insurance agents because it allows them to build relationships with clients, provide valuable protection, and earn a competitive income. Additionally, helping clients secure their financial future can be rewarding and fulfilling.
Life insurance is a popular way for the wealthy to maximize their after-tax estate and have more money to pass on to heirs. A life insurance policy can be used as an investment tool or simply provide added financial reassurance.
