An Insurance Agent Career with Long-Term Advantages

An insurance agent is a vital member of the modern economy and becoming one can provide you with more long-term financial advantages than you may have realized. There are a few reasons for this, but let's start with one you likely didn't realize: the way insurance companies make money isn't quite how you think.

On average, about 5% of clients with home owner's insurance file a claim annually; that's 1 out of 20. The average claim is between $8k and $9k, depending. So, let us do some math really quick. Two hundred clients paying $100 a month for a policy represent a $240,000 annual income for a given home insurance agency. However, 5% of 200 is ten. At $9k per settlement, which is $90,000, meaning of the $240,000 brought in by an insurance group, only $150,000 is recouped. That is barely enough profit to run an agency.

See, it is not always the policies that make insurance companies money. What they tend to do is invest the remainder after settlement thresholds and overhead costs are taken care of (depending on the agency, of course). The real money in insurance is investment. So being an insurance agent will eventually put you in a fine position for secure, reliable investments over the long-term. It is like getting paid a reliable wage to be an investor.

Pinnacle Financial Group Insurance Agents | Insurance Broker in a Meeting With ClientKeep in mind, most "playing" the stock market do that full-time. As an insurance agent your primary job is with the agency you work for, but you are also privy to some of the country's most savvy investors, and you can learn from them with insignificant risk overall. All that to say this: a career in insurance has a lot of surprising collateral benefits. So how do you become an agent? Here we will explore a few things that can help, including:

  • Education Required of Insurance Agents
  • Interview Preparation Practices
  • Questions for An Insurance Broker

Education Required of Insurance Agents
If you’re looking for a career as an insurance agent all you’ll really need is a high school diploma and an insurance license. A Bachelor's degree is helpful. It is not strictly necessary. You can read more about associated qualifications here.

An insurance exam prep course, the exam itself, application for the license, and evidence of CE credit intention are what most companies need. CE stands for Continuing Education. Here is a link to specific requirements per state for more background.

Interview Preparation Practices
One of the most important parts of becoming an insurance agent is the interview. Since you only really need a high school diploma and a passing insurance exam score, the primary way people become insurance agents is by giving good interviews at whatever agency they decide is best. These general tips for job interviews apply:

  • Researching the Specific Company to Which You're Applying
  • "Selling" the Interviewer on Why You're a Good Hire
  • Anticipating Potential Interviewer Concerns
  • Assuring You Bring a Resume with You
  • Preparing for Run-of-the-Mill Questions
  • Having Your Own Questions Prepped
  • Practicing the Interview Process
  • Making a Good Impression Fast
  • Being Properly Assertive
  • Being Positive

Pinnacle Insurance Brokers | Men Shaking HandsThere are other things the linked article advises you consider. With insurance companies specifically, understand you are dealing with people who have analytical personalities that are concerned with the numbers.

Insurance is about statistics. How likely is it a client with X qualities will need Y settlement? Well, age, gender, location, education, employment, and similar factors could all come into play.

Just to get an idea, go online and apply for an insurance policy. Take careful note of the questions asked in the online portal. Every one of them has a statistical reason behind it, and the same will be true at whatever insurance agency you decide is best for your application.


Questions for An Insurance Broker
You want to ask the interviewer a few probing questions about being an insurance agent at their company, too. Be as clever as they are. Ask the interviewer why they like working at that particular company. Ask about their take on the company's future over the next few years. Ask how you will help the company reach its goals. Also, ask what makes a given company unique, and what long-term employment will look like with that company.

These are powerful questions demonstrating initiative. Ask them right, and you will immediately be positioned for a secure position in the company.

Forging Ahead Toward a Long-Term, Lucrative Career
If you are thinking about becoming an insurance agent, there are many different companies with whom you could work, such as Pinnacle Financial Group. All you need is a high school diploma, and the ability to pass an insurance exam. Be sure you prepare for the interview extensively and come to the meeting with your own pointed questions. Such steps can definitely help you get a reliable long-term job in the insurance industry.