Selling insurance is challenging–there are a lot of regulations, laws, marketing and sales techniques, and a lot of products out on the market. The industry changes every day! Even though it can be challenging, insurance is a good job for the right people.
As an insurance agent, this is a question I get asked a lot: “Is selling insurance a good job to have?” Truthfully, I love my job! Every day I get to help people navigate the confusing world of insurance and protect themselves, their loved ones, and their businesses. Now, whether or not insurance is a “good” job–well, it’s complicated. Like most jobs, it’s only the right job for the right people, and isn’t for everybody.
In this article, I’m going to talk about the advantages and challenges of selling insurance, and the factors to consider when choosing this career path. Hopefully, I can help you decide if selling insurance is right for you. Let’s get started!
|Article Section||Key Takeaways|
|Advantages Of Selling Insurance||High earning potential, Flexibility, Opportunities for advancement, Potential for long-term career growth, Building relationships, Helping others|
|Challenges Of Selling Insurance||Cold calling and rejection, Difficult to break into the industry, Constant need to learn, Stressful and high-pressure sales environment, Lack of job security, Long working hours|
|Factors To Consider||Personal strengths and interests, Market conditions and competition, Networking and building relationships, Ongoing training and professional development, Ability to work independently, Location|
Table of contents
Advantages Of Selling Insurance
Based on my experience as an insurance agent, selling insurance offers a lot of benefits to those who want to work in the insurance industry that are harder to come by for a lot of other careers. If you’re considering a career in insurance sales, it’s important to weigh the benefits before making a decision. Here are some of the key advantages of this profession:
High Earning Potential
One of the biggest advantages of selling insurance is the earning potential. sales agents are often compensated based on commission, which provides the potential for high earnings. Your income will depend on your ability to build relationships and sell insurance products to clients. Additionally, insurance agents can earn passive income from policy renewals.
Low Barrier To Entry
Becoming an insurance sales agent requires passing a state licensing exam, but there are few other barriers to entry. A college degree is not a requirement, although some firms may prefer it. Experience is not necessary, as most agents learn through on-the-job training.
Flexibility In Terms Of Hours And Location
Another advantage of selling insurance is the flexibility it offers. Many insurance agents are independent contractors and can set their own schedules. This can be particularly appealing for those who are looking for a job that allows them to have more control over their time. Additionally, the location of work can also be flexible as many insurance agents can work remotely.
Opportunities For Advancement
Selling insurance also offers opportunities for advancement. Agents can advance to management roles, or move into other areas of the insurance industry such as underwriting or claims. This can be a great option for those who are looking for a career with a clear path for growth.
Potential For Long-Term Career Growth
One of the benefits of working in insurance sales is the potential for growth. According to the U.S. Bureau of Labor Statistics, the job outlook for insurance sales agents is favorable, with a projected growth rate of 5% by 2030, which equates to 27,500 new jobs. This growth rate is higher than the average for all occupations.
Building relationships with customers is an important aspect of selling insurance. Insurance agents are able to build trust and establish long-term relationships with customers. This can be a great way to build a sense of community and a rewarding career.
Selling insurance can be a fulfilling career as it allows agents to help others. Insurance agents help protect families and businesses from financial loss. They also help customers understand insurance policies and the coverage they need. Knowing that they are helping others can be a source of satisfaction for insurance agents.
Challenges Of Selling Insurance
Just like any job, selling insurance comes with its own set of challenges. As an insurance professional, I think it is important to understand these challenges if you are deciding to go into the industry so you can be prepared to overcome them.
The insurance industry can be challenging, especially for those new to the field. The nature of commission-based sales and pressure to meet quotas can be difficult, and there are aspects of the job that may not align with one’s personal values.
The public perception of insurance sales can sometimes be negative, which can impact the way you are received by potential customers.
And the limited availability of quality leads and the pressure to sell specific products for higher commissions may also be a challenge.
It’s important to carefully consider these factors and understand the nature of the insurance industry before entering into a career as a life insurance salesman. The best approach is to research and understand the various aspects of the job, including the training programs and the industry as a whole, so that you can make an informed decision about whether it’s the right path for you.
Some Common Challenges Of Selling Insurance Include:
Cold Calling And Rejection
One of the biggest challenges of selling insurance is the need to make cold calls and handle rejection. Insurance agents often need to make many calls to potential customers in order to find interested leads. This can be difficult for some, as it requires a thick skin and the ability to handle rejection.
Difficult To Break Into The Industry Without Prior Experience
Another challenge of selling insurance is that it can be difficult to break into the industry without prior experience. Many insurance companies require their agents to have previous experience or to pass certain tests before they are hired. This can make it difficult for those who are new to the field to find a job.
Constant Need To Learn And Stay Up-To-Date With Regulations And Policies
In order to be successful in the insurance industry, agents need to stay up-to-date with the latest regulations and policies. This can be challenging as insurance laws and policies can change frequently. Insurance agents need to be committed to ongoing learning and professional development in order to be successful.
Stressful And High-Pressure Sales Environment
Insurance agents often work in a high-pressure sales environment. They are often under pressure to meet sales goals and deadlines. This can be stressful and demanding, and can take a toll on an individual’s mental and emotional well-being.
Lack Of Job Security
Selling insurance is a commission-based job, which means that agents are dependent on their own sales performance to earn a livelihood. This can be challenging for some agents, as it can make their income unstable. Additionally, insurance companies may change their commission structure or policies, which can affect an agent’s earning potential.
Long Working Hours
Selling insurance can be a demanding job, as agents often need to work long hours. They may need to work evenings and weekends in order to meet with clients and close deals. This can make it difficult for agents to maintain a good work-life balance.
Factors To Consider For Yourself
As mentioned above, selling insurance is the right job for the right people. Throughout my experience as an insurance broker, I’ve seen a lot of people enter the industry. I’ve seen people be successful, fail, and quit throughout my years, so it’s important to understand that there are factors you need to consider before pursuing a career in the insurance industry.
Personal Strengths And Interests
Before deciding to pursue a career in selling insurance, it is important to consider your personal strengths and interests. Are you comfortable making cold calls and handling rejection? Are you comfortable working in a high-pressure sales environment? Do you have an interest in finance or business? Your personal strengths and interests will play a big role in determining whether selling insurance is the right career path for you.
Market Conditions And Competition
It is also important to consider the current market conditions and competition in the insurance industry. Is the industry growing or shrinking? Are there many insurance companies in the area that you want to work in? What is the level of competition? Knowing the market conditions and competition will help you understand the job opportunities available and what to expect.
Networking And Building Relationships
Networking and building relationships are important in any industry, but they are especially important in the insurance industry. Building relationships with other insurance agents and professionals can help you learn about job opportunities and stay up-to-date on industry trends. It can also help you establish a reputation and build your own customer base.
Ongoing Training And Professional Development
Selling insurance requires ongoing training and professional development. Agents need to stay up-to-date on new laws, regulations, and policies. They also need to be knowledgeable about the products and services they are selling. Consider whether you are willing to commit to ongoing training and professional development in order to be successful in this field.
Ability To Work Independently
Selling insurance requires a high degree of independence. Agents often work independently and manage their own schedule. This can be great for those who enjoy working independently, but it can be difficult for those who prefer a more structured work environment.
The location of the job can also play a big role in your decision to sell insurance. Some areas may have more job opportunities than others, or may have a higher demand for insurance. Some areas may have more competition and/or different laws and regulations than others.
As an insurance agent, I can tell you that selling insurance can be a good job if you are interested in the insurance industry. Selling insurance can be a great job as it often has flexible hours, opportunities for advancement, and high earning potential, however, it also comes with its own set of challenges like difficulty entering the field, handling rejections, and constant need to be up-to-date.
Be sure to look over the factors to consider as outlined in this article to make sure that selling insurance is right for you. I’ve found it a great industry to be able to provide a consistent income for my family but it took alot of hard work and long hours to get here. If you have any questions on how to build up your own agency feel free to reach out to us to talk about strategies to help you boost your sales.
Another article you may want to read for considering the insurance industry as a good career is Selling Insurance on the Side.
If you liked this blog check out our other insurance articles on: