Tag Archive for: selling insurance

Your Guide to Selling Car Insurance

If you’re considering becoming an insurance agent, you probably wonder whether selling auto insurance is worthwhile. The quick answer to your inquiry would be, yes, you can make an excellent living selling auto insurance. But how do you get your career started in this exciting field? If you’re ready to get started, read on for your guide to selling car insurance.

Obtain Your License

Every state has specific qualifications you’ll need to meet before you can sell car insurance. Luckily, these requirements aren’t too stringent. For example, you likely will only need to be a legal adult (18 years old) and have obtained either a GED or high school diploma.

Once you’ve met those requirements, you must obtain a license to sell insurance in your state. Again, each state has rules for what you must do to get the license, but almost all require a certain number of hours in a pre-licensing course.

This course will educate you on all the guidelines for selling car insurance in your state and other general rules for selling insurance. After you pay for and complete the pre-licensing course, you’ll need to pass the final exam.

Meeting the minimum passing grade on the exam and passing a background check will likely allow you to obtain your license to sell car insurance.

Decide the Type of Agent You Want to Be

There are two types of car insurance agents – captive and independent.

Captive agents work as salaried employees for a specific insurance company. They are provided with training, tools, support, and other services to help them do their job well. These agents will only be allowed to sell the car insurance policies that their company offers. They’ll receive a base salary for their work plus a fixed commission based on their sales.

Independent agents, on the other hand, are essentially small business owners. They are free to sell car insurance for whichever companies they can contract with and have the freedom to create their schedule and build the business they want.

A significant upside of being an independent agent is the earnings upside. The sky is the limit since you can build your client base however you want. You’ll also likely earn higher commission percentages from insurance companies when you make a sale. The flip side is that you won’t have the backing of a base salary.

Find Your Job

Now that you’ve decided what type of agent you want to be, it’s time to find a job selling car insurance. If you want to be a captive agent, this will require you to put a resume together and apply to insurance companies that are hiring. This process will be relatively straightforward.

The process will be more complex if you want to be an independent agent. First, of course, you’ll want to create a solid resume and build a business plan that will help guide you. This plan will serve as your blueprint for success and proof to insurance companies that you’re worthy of a partnership.

You’ll also want to build your client base through marketing, networking, and paid advertising. However, this process can take time, so many new car insurance agents will maintain a side job to keep money flowing.

There is significant earning potential in a career selling car insurance, but it may not come immediately. So, having something else to fall back on is a good idea as you start.

Refine Your Skills and Prospect

Finally, it’s time to prospect, prospect, and prospect some more. To build a client base selling car insurance, you must always collect leads and chase them down. Lead generation requires a lot of hard work, time, and dedication, as well as a lot of persistence. In addition, car insurance agents must be organized and stay on top of their prospects to execute sales. It’s all about being in the right place at the right time and providing the right service to the right people.

You won’t know the right place, time, service, or audience unless you’re constantly prospecting. As you do so, it’s also important to refine your skills. So first, take notes of the feedback from prospective clients who turn you down and those who sign on the dotted line. Then, review those notes and see if a common theme is holding you back.

Selling car insurance is a science, but it’s partly an art, too. Paying attention to how people react to the information you provide them and how you provide it will help you finesse your sales pitch over time. Then, as you do, you’ll become more successful at converting leads into customers.

Discover the Good Life

We hope you enjoyed this guide on how to start selling car insurance! As you can see, the path to success can be full of challenges, but the potential payback makes it all worth it.

At Good Life Insurance Associates, our experienced sales associates are here to provide support and training for both new and seasoned agents. To learn more about careers with GLIA, explore our business support services. Or, speak with a team member today about your journey to becoming an independent agent. Again, thanks for visiting our blog; we hope to help you soon!

Want to learn more about what it takes to succeed in insurance sales? Read our blog on effective lead-generation strategies for insurance agents.

5 of the Best Niche Insurance Markets

Being an insurance agent can be a gratifying career. Not only can you earn a solid living, but you can also help protect your clients in several different ways.

If you’re new to selling insurance, it can be challenging to get started. A great place to begin is to determine what type of insurance you want to sell. There are many different markets, and each provides pros and cons. Below, we’ve listed five of the best niche insurance markets to help you explore your options!

1. Life

Life insurance may not be the first type of policy you consider when entering the industry, but it’s perhaps the best niche to focus on if you want to make the most money. That’s because the commissions on life insurance policies are often much higher than other types of insurance.

The most significant benefit to selling life insurance is that most companies will pay you anywhere from 100% to 115% of the first year’s premiums as an upfront commission for new policies. While the residual commission you’ll receive every year after that will be much lower than other insurance policies, many agents prefer this larger upfront payment.

You’ll also continue to collect residual commissions as long as the client holds the policy. This time could be 20 or 30 years for term life policies, which could be significantly longer than a typical auto insurance policy.

The flip side is that life insurance isn’t as easy to sell. One of the main reasons is that people don’t need to have life insurance. It’s certainly something that would benefit most people, but there is no law requiring them to carry this type of policy, unlike auto insurance.

2. Property and Casualty

Property and casualty insurance is an excellent niche for one main reason – just about every person who owns a property will need this insurance. In fact, almost all homeowners who carry a mortgage on their property are required by their lender to maintain the policy.

Unlike life insurance, your sales pitch for property and casualty insurance will focus more on the benefits of your policies and the advantages of working with you rather than convincing someone they need this type of insurance.

Upfront commissions won’t be nearly as high with property and casualty as with life, but the residual commission should be higher, at least in terms of percentage. Again, this is a great niche to consider if you’re looking to make a lot of sales, which could serve as your “in” to upsell clients in the future.

3. Health

Everyone needs health insurance, so selling in this niche will provide you with a vast pool of prospective clients. In addition, the health insurance landscape has changed considerably over the last few years, giving independent agents more opportunities for sales in this niche.

An increasing number of people search for health insurance independently, outside their private employer. This is an excellent opportunity for you as an agent to make your mark in the industry.

Aside from primary health insurance policies, you can also offer Medicare insurance, which expands your potential reach even further. However, one potential downside to this niche is it can be hard to understand and, as a result, require a lot of upfront education and research.

4. Auto

Auto insurance is one of the most common types of insurance. It’s also one of the least expensive in terms of annual premiums. Just like property insurance, every driver must carry auto insurance, which provides a large potential client base.

This niche is a volume game, though. You’ll need to sell a lot of auto policies to make a considerable amount of money. However, many agents will bundle auto insurance with other types of insurance to simultaneously increase their revenue and client base.

Doing this could make more money for yourself and potentially save your clients money.

5. Commercial

Just like individuals, businesses have insurance needs, too. One of the best parts about selling commercial insurance is that there are many types – vehicle, building, general liability, workers’ compensation, etc. The market for commercial insurance is also relatively large, as potential clients could be any business in your area.

However, the downside to commercial insurance is the same as its upside. Since so many types of insurance fit into this niche, it can be challenging to learn them all and become an expert in them. In addition, selling this type of insurance requires a lot of know-how, so it may not be for everyone.

Discover the Good Life

We hope you enjoyed this guide on five of the best niche insurance markets! As you can see, the path to success can be full of challenges, but the potential payback makes it all worth it.

At Good Life Insurance Associates, our experienced sales associates are here to provide support and training for both new and seasoned agents. To learn more about careers with GLIA, explore our business support services. Or, speak with a team member today about your journey to becoming an independent agent. Again, thanks for visiting our blog; we hope to help you soon!

Want to learn more about what it takes to succeed in insurance sales? Read our blog on effective lead-generation strategies for insurance agents.

How to Start Selling Life Insurance

If you want to sell life insurance, it’s essential to understand that it’s a very competitive sector. For example, the Bureau of Labor Statistics reports one life insurance agent for every 1,234 people in the United States as of early 2020. While this makes for a difficult road to prolonged success, there are still plenty of good reasons to sell life insurance. One of the top reasons is that it can be a very lucrative career. Below, we provide a basic guide on how to start selling life insurance.

Advantages of Selling Life Insurance

Don’t be discouraged by the fact that selling life insurance is a challenge. On the contrary, there are many positive advantages of selling life insurance.

When you sell life insurance, you don’t have to take on a typical job working from 9 a.m. to 5 p.m. You’ll have the flexibility of working the hours that are best for you and your clients.

There aren’t any specific qualifications you’ll need to have before you can start selling life insurance, at least from an educational standpoint. So while you’ll be required to be licensed to sell life insurance, you won’t need to earn a Bachelor’s degree to get started, but you will need a strong work ethic.

There are also plenty of job opportunities selling life insurance. There’s a reason there are so many agents throughout the country—life insurance is in high demand. It’s also an industry that’s growing. The BLS estimates that the number of agents is likely to grow at an annual rate of 7% from 2020 to 2030.

Finally, you can earn very high commissions selling life insurance, especially compared to other types of insurance. For example, independent agents have the potential to make 100% of the premiums for the first year of the policy in commissions, followed by an annual rate of 5% after that.

Know the Products

With life insurance sales being so competitive, you must find a way to separate yourself from other agents in your market. A great way to do that is to educate yourself on the various life insurance policies.

Unlike some other types of insurance, life insurance policies vary greatly. The two main categories of life insurance policies are term and whole life, though many different policies fall underneath each.

By becoming an expert in the various types of life insurance and understanding who would benefit from each, you can serve as a trusted adviser for your current and prospective clients. Not only will you be helping them provide for their loved ones after they pass, but you could also be helping them secure their own future in retirement.

If you know the in-depth features of each type of policy and its benefits and potential drawbacks, you can help educate clients and put them in the best position. Then, as you earn their trust by selling them a life insurance policy, they might turn to you for other insurance products if you offer them.

Specialize in One Particular Product

While it’s a good idea to know about all the products and policy types that are available, the most successful life insurance agents specialize in one or two niche products. This is because they can drill down to the products they believe the most in and that they think will serve their customers best.

Narrowing the products you sell to only a few will help you focus all your marketing and sales efforts. Instead of casting a wide net and trying to reel in all the fish, you can be more selective and targeted when you prospect.

Know Your Market

What type of life insurance products you decide to sell could be based on what the market dictates. Certain life insurance products might be more attractive to your target audience than others based on a number of factors, including your location and the general demographics of the people who live there.

Defining your target audience is essential in any sales job, but it proves especially so when selling life insurance. That’s because certain products won’t appeal to some people.

Try and Try Again

To be a successful life insurance agent, you must try and try again. You cannot let minor setbacks get in the way of your long-term goals. Go into it knowing that you will face rejection more often than you’re going to land clients, and that’s okay so long as you don’t look at these rejections as failures. Instead, learn from every situation to refine your approach, message, and, if necessary, your target audience.

Also, know that a “no” might mean “not now.” In other words, the same people who reject you today may be interested in your life insurance policies at a later date. So, be polite and helpful to everyone no matter what. You never know who might come back around and turn to you when they need something you’re selling.

Discover the Good Life

We hope you enjoyed this guide on how to start selling life insurance! As you can see, the path to success can be full of challenges, but the potential payback makes it all worth it.

At Good Life Insurance Associates, our experienced sales associates are here to provide support and training for both new and seasoned agents. To learn more about careers with GLIA, explore our business support services. Or, speak with a team member today about your journey to becoming an independent agent. Again, thanks for visiting our blog; we hope to help you soon!

Want to learn more about what it takes to succeed in insurance sales? Read our blog on effective lead-generation strategies for insurance agents.