Job Description

An insurance agent is a salesperson who is responsible for providing their clients with insurance policies that fit their lifestyles and budgets. An agent can work in any insurance industry, such as life, medical, home, automobile, or health. In addition to selling insurance, these agents must help their clients file the claim if an incident happens. They also spend most of their days procuring new clients. As a result of an increasing demand for insurance, there is also more of a demand for insurance agents.

Average Salary

The average  insurance agent’s salary in the United States is approximately $45,000 per year. There are several factors that cause an increase or decrease in salary, two of which are: the type of agent and the agent’s education level.

Types of Agents

There are two types of agents: captives and brokers. Captive agents work for one company and help their clients pick a policy within that one company, and that company alone. Brokers, on the other hand, are freelance agents who work with several different companies. They do the comparison shopping for their clients to determine which company has the best policy at the right price.

Captive agents can be paid in three different ways, which are a straight salary, salary plus commission, or salary plus bonuses. Depending on which way the agent gets paid, his salary will be either higher or lower. If he sells a lot of policies, then a salary plus commission may pay more than just a salary. It depends on what the company decides to pay their employees.

Brokers are usually paid only by commission, which can be great when the agent has several clients. However, when business is slow and the agent is not getting as many clients, then being paid by only commission is not exactly the best source of income. It is risky to be paid per client versus having a solid salary.

Education

Although education level is not an important factor that employers look for, having a higher education is proven to lead to a higher income. Employers realize that their agents with a college education have more of an understanding of business, and pay them more as a result. A bachelor’s degree in either business or economics will put the agent a step above candidates who only have a high school degree.

Job Description

An insurance agent’s main goal is to provide their client with the insurance policy that is best suited for their lifestyle and budget. In addition to selling insurance, these agents are also responsible for maintaining records of their clients’ claims and policies. Their clients call them when an incident occurs and they need to put in a claim in their policy, so agents also need to help the client file the claim and get what they need from the policy. Agents can be broken down into two types: captives and brokers. Captive agents works for one company and help their clients pick a claim from that company alone. Brokers act as liaisons between their clients several different insurance companies to ensure their clients with the best price and policy. Brokers do the comparison shopping for their clients.

Guidelines

There are several different types of insurance companies, such as life, health, medical, auto, or home. Although there are so many different types of insurance, they all have generally the same guidelines to become an insurance agent, even across the nation.

1)      Be at least 18 years of age.

2)      Knowing about the industry will be really helpful when deciding on what type of insurance company you’ll want to work for.

3)      There are no education requirements, but most insurance companies look for candidates who have a bachelor’s degree in business or economics, or some type of related field.

4)      Take the state required insurance exam and obtain a license. In some states, it is required to take a course before taking the exam, and in other states candidates are allowed to just purchase a textbook and take the exam without the course.

These guidelines vary from state to state, so it is important to look up the specific requirements for the state in which you reside.

Skills

Certain skills are needed when selling insurance, which is why education is not too particularly important in this industry. Employers look for candidates who have prior experience in sales and who have the ability to sell. A charismatic personality and the ability to be concerned with clients’ issues as well as understanding are also important traits to have.

You’re driving down the road on a cool summer night, when suddenly, a badger runs out in front of your car. You spin out of control and end up hitting a light post, but you’re alive and are able to reach for your phone to call your insurance provider to assess the damage. Luckily, you called that insurance company and set up a plan before this accident occurred, and the person who helped you with this is called an insurance agent.

An insurance agent is somebody who sells some type of insurance, whether it is of the life, car, property, home, or health variety. Unexpected things happen to everyone, and having insurance is a relatively easy way to safeguard your belongings by having a protection plan.

What Do They Do?

An agent works for a company who specializes in a certain type of insurance, and their main objective is to sell an insurance policy to their client. Clients can either be businesses or individuals, and insurance agents work with the client to determine the best type of policy plan for their lifestyle and budget. Agents not only sell insurance, but they also maintain records of their clients and prepare reports. When one of their clients has an incident where they need to claim their insurance, the agent is responsible for helping them to settle the claim and get them reimbursed for what they lost from the damage.

Types of Agents

There are essentially two types of insurance agents. One type works for one specific company, and they are called captives. Captives typically have a contract with the company that they work for. The second type is called a broker, and they act as liaisons between their clients and different insurance companies. These liaisons work as a type of freelance broker by comparison shopping for their clients to determine which company has the best price for the type of policy that they are looking for.

Requirements

There is no education requirement to become a sales agent, although most agencies like to hire people who have a college degree in business or economics. Sometimes, high school graduates are even hired if they show that they have the ability to sell. Although there are no education requirements, agents are required to obtain a license before being able to work.