How to get into selling insurance

Selling insurance is a rewarding career path for many. If you’re thinking of entering the business, congratulations! The first step in any major career decision is considering if you have the qualities to achieve success. Is your personality a good fit for this industry? Do you enjoy building relationships with others?

If you think you have what it takes (and we think you do!), here are your next steps!

MAKING IT OFFICIAL

Do Your Research

First things first, you need to make sure you know all the requirements for becoming an insurance agent, or specifically how to become a Medicare insurance agent, before you dive right in. Each state has its own set of rules that you must follow during this process. You can find those rules on the National Insurance Producer Registry’s (NIPR) website.1

It’s imperative that you check with the department of insurance for the requirements for each state you want to sell in before taking exams or applying for your license.2

This will ensure you’re on the right path throughout your journey to becoming a licensed agent!

Back to School

Before obtaining a license, most aspiring insurance agents must complete pre-licensing courses, though not all states require them. These courses are available online, but there are in-person options to better fit your learning needs.3

It’s important that you make the most of these classes and get as much out of them as you can. The course material will be extremely relevant when taking your licensing test.

Many states require you to complete a certain number of education hours before you can take the test. Some states even require you to be sponsored by an employer to take the courses as well as the exam.4

Test Time

Once you’ve completed all your pre-licensing requirements, it’s time to take the test! In most states, you’ll need to pay a one-time exam fee. Keep in mind, agent licenses must be renewed on a regular basis and maintained with continued education.

The majority of states will have you take one exam for each type of insurance you wish to sell. For example, if you intend to sell Medicare products as well as life insurance, you will need to take two separate tests. However, some states will group multiple insurance types into one test.

Groupings can vary from state to state. In Pennsylvania, for instance, one test is needed for Life, Accident, and Health (LA&H) and a second test is needed for Property and Casualty (P&C). In Tennessee, each type of insurance license requires a separate exam, no exceptions.5 Refer back to step one to verify your personal requirements for your specific state.

— END OF PREVIEW —

Are You Ready to Learn How to Get Into Insurance Sales?

It’s one thing to read about how to become an insurance agent — it’s another to make it happen! That’s why we’ve made it super simple to follow these steps to becoming a licensed insurance agent and to learn how to get appointed with health insurance companies. Even if your knowledge about the industry is limited or you’re not positive if this is your life’s calling, that’s OK — all the more reason to give it a read! Plus, the guide is completely free, so you have nothing to lose.

Take a Look Inside This Book!

This is valuable information for any aspiring agent. Don’t start your career without reading this first!

Results may vary based on individual user and are not guaranteed.

Sources
1“Professional Insurance Licensing Resources.” National Insurance Producer Register, 2018.
2“How to Become an Insurance Agent.” Kaplan University, Kaplan Financial Education, 27 July 2017.
3“How to Become an Insurance Agent.” How To Become, SR Education Group, 2018.
4“How to Become an Insurance Agent in Pennsylvania.” StateRequirement, Huge Hammer LLC, Aug. 2017.
5“How to Pass the Insurance Exam: Tips, Tricks, Practice Tests, & More.” StateRequirement, Huge Hammer LLC, 17 April 2017.

The role of an insurance agent, has amazing growth potential, and is a great way to start your career or make a much-needed change. But if you do know, you think you have what it takes, and you've considered making this career change, you're likely wondering how. In this article, we've outlined the five basic steps toward earning a license and starting your insurance career. 

Step 1: Decide What Kind of Insurance You Want to Sell

The first thing you want to do is decide what type or types of insurance you’d like to specialize in. In the industry, these are referred to as “lines of authority.” Here’s a rundown of the most common:

• Life insurance: Selling policies and annuities related to providing for a beneficiary upon the death of the insured.

• Health insurance: Selling medical, disability, Medicare supplement, and long-term care policies.

• Property insurance: Selling homeowner, commercial property, and inland marine policies.

• Casualty insurance: Selling auto, workers compensation, crime coverage, and professional liability policies.

• Surplus line insurance: Selling coverage for unique or unusual situations with risks that aren’t covered by standard insurance, such as daycare insurance, oil drilling rigs insurance, and special events like state fairs, car races, and outdoor amusement parks.

• Variable products insurance: Selling insurance products with an investment element. To sell this kind of insurance, you need certain securities licenses.

• Personal lines insurance: Selling products like auto insurance, homeowners insurance, renters insurance, and policies for boats, motorcycles, and snowmobiles to individual consumers only.

Another option is becoming an adjuster, which is the business of investigating and adjusting claims on an insurance policy. Insurance adjusters also solicit for the adjustment business.

In a  number of cases, you don’t have to pick just one line of authority. Individuals often combine certain lines, such as property and casualty insurance.

Thinking about a career in insurance? Download this free Launching Your Insurance Career eBook.

Step 2: Understand the General Requirements

After you’ve decided what kind of insurance agent you want to be, the next step is to understand the basic requirements: 

• You need to be at least 18 years old to become an insurance agent.

• You need to complete prelicensing education for your line of authority, which is determined by each state. The number of hours you’ll have to complete and the cost also varies by state.

• You need to pass the state insurance licensing exam for your line or lines of authority. An insurance exam preparation package can help.

• You need to pass a background check. The process varies by states and, in some cases, includes fingerprinting. 

• You need continuing education to keep or renew your license.

Step 3: Decide on a State and Find Out Its Requirements

Now that you have a basic idea of what you need to do, it’s time to decide whether you want to sell insurance in your home state or some other state. (You can also sell in more than one state, but you also must abide by the rules for each.) As you saw in Step 2, each state regulates its own insurance licensing process, and each state’s regulations or rules are slightly different, so this is why deciding on where is so important.

After you’ve made your decision, check with the department of insurance in that state for the rules. The state bodies of government that regulate insurance have different names, so a good way to find out the name of the state’s insurance body is to go to the official website of the state and search for the insurance licensing rules. Most state insurance web pages are quite helpful and often have handbooks you can download and read to get all the information you need to become an insurance agent in that state. You’ll find out exactly how many hours of education (if any) you need, how to register for the exam, where to go for the exam, how you’ll get your score, and—if you pass—how you’ll get your license.

Each state website will also tell you what kind of continuing education you need to keep or renew your license.

Step 4: Research Agencies

Now is also the time to research any agencies for which you want to work. Many have additional requirements for candidates or agents to follow that you’ll need to be aware of if you want to work there. Also, some agencies will hire you before you have a license, and they might have specific processes you need to follow.

Step 5: Pass Your State Exam and Apply at Insurance Agencies

You’ve done your research and know what you want to do. So, it’s time to get out there, get the hours of education required by the state and agency of your choice, take the exam, and pass it. Armed with your license and your knowledge, you’re ready for an exciting and rewarding career as an insurance agent. Good luck, and don’t forget about keeping up with your continuing education.

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