Thinking of Becoming an Insurance Agent?
An insurance agent is someone that sells insurance policies. There are different types of insurance coverage that one can select. They include health, wealth, life, long term care, and car insurance. As an insurance agent, you must have extensive knowledge of all covers that your company offers. The experience makes it easy when approaching individuals and organizations that may require your services.
What does an insurance agent do?
Insurance agents are the people who meet with clients directly in the field. Their responsibilities include:
- Talking to both new and existing customers about different policies and selecting the best plan for them.
- When selling life insurance policies to a new client, insurance agents must interview them to know what properties they have.
- When it comes to car and property insurance, agents must go through everything the client has for them to choose the best plan.
- Insurance agents calculate all the costs for their customers and process necessary documents.
- In case there are claims made by family members, insurance agents handle them.
When it comes to the salary of insurance agents, it depends on the company you work for. Some companies pay on commission, monthly basis, and some pay monthly + commission + additional allowances.
How do you become an insurance agent?
The people you see in your offices and homes selling insurance didn’t just wake up one day and become agents. Most insurance companies look for agents with at least a bachelor’s degree in economics, finance, or business. So for those still in school and looking forward to becoming sales agents, that’s a tip.
Depending on where one is from and the kind of policies you’ll be dealing with, you are required to have licenses. You will also have to attend specialized training.
You might be required to take a test. This helps assure the state that you are aware of laws regarding the insurance policies you will sell. After this, you get the necessary licenses.
Lastly, you must look for a job. If lucky, you’ll be trained at the office and other agents will teach you.
Can insurance agents work from home?
Just like any other job, insurance agents can also work from the comfort of their homes. You are, however, required to have licenses from your city. You are also required to have a home office since most things such as calls and filling details are carried out on the phone and computer.
Therefore, whether you are an insurance agent fresh from college or a seasoned professional, you don’t have to worry about having an office. You can work from home and earn a decent amount of money.
Can insurance agents apply for unemployment?
Not all insurance agents are eligible for unemployment benefits. An insurance agent forced to step down by the company can apply for jobless insurance benefits. The amount of money they receive depends on where they are from since there are states where agents who are paid on commission can’t get the benefits. If you are in Texas the rules may be different than California, the same goes for Nevada. Sometimes individuals between jobs can use an installment loan to make ends meet or even finance the beginning of their own insurance business.
What is a composite insurance agent?
A composite insurance agent is an agent with licenses to sell both life and general insurance policies. A composite agent works alone, and any insurance company doesn’t employ him/her. A composite agent has the advantage of working for many insurance companies. To get the composite license, they must qualify with a pass from any well-known institution in the exams they sit for depending on where they live.
A composite insurance agent must also be trained thoroughly and then sit for the final exam, after which they are awarded the composite insurance agent license.
What is a Field Marketing Organization (FMO)?
A Field Marketing Organization (FMO) is sometimes also known as an Independent Marketing Organization (IMO). It is a company that insurance firms subcontract to market their products and services. Agents stand to benefit from working with an FMO. An FMO can provide them with a wide range of products to offer their clients, which translates into a higher chance of making a sale. (Without the FMO, an agent might only have one or two options in their portfolio.) Many FMOs also offer support, tools, and competitive commissions.
If it wasn’t for insurance policies, most cars, properties, and cars couldn’t be accounted for. Therefore, it is safe to say that insurance agents play a significant role in our lives, which is why they deserve our attention when they request to talk to us.