Becoming the insurance agent is a fantastic career path. Whether you are just starting when you’re young, or changing careers mid-stream, becoming an insurance agent is an excellent opportunity to earn a decent living while living your life the way you choose. Insurance agents even have the ability to work online. Read more to learn the steps needed to become an insurance agent.
How to Obtain a License for Insurance
The first step in becoming an insurance agent is obtaining an insurance license. Each state has its licensing procedures and criteria, although these basic principles are followed in the majority of states.
Which Insurance Licenses Are Required?
Depending on the kind of insurance agent the person needs to be or the kinds of policies the person wishes to sell, the individual must decide which types or type of insurance licenses to obtain. The following are instances of the kinds of insurance products that each type of license allows you to sell:
- Property & Casualty Insurance License – Automobile Insurance, Home Insurance, Commercial Insurance, and so on…
- Life & Health Insurance License– This license allows you to sell annuities, life insurance, and health insurance.
Several insurance agents get these two licenses, but if an individual wants to sell just one kind of coverage, you may pick whatever license best suits your requirements.
Pre-License Insurance Education
Depending on the state, an individual can be required to complete a pre-licensing education course for insurance. This is the in-person or online course that will prepare the individual for passing the insurance licensing test. The duration of the course is determined by the state and many types of licenses you want to obtain. Even in jurisdictions without a pre-licensing requirement, most individuals opt to attend a course to prepare for the test. This is prudent, since these exams may be challenging, particularly if you are unprepared.
Examinations for Insurance Licenses
Following completion of the pre-licensing training, the person is now prepared to sit for the insurance license exam. These examinations typically consist of between 80 and 160 queries, relying upon the state. The person must take an examination for every type of insurance that they want to be licensed to sell within their jurisdictions, the person can be required to take as many as four examinations in total (though many only require two). Exam costs vary significantly by jurisdiction, with some states charging about $40 each try and others charging upwards of $150+ every attempt, cost is the primary reason you should arrive prepared for the test. Insurance examinations are conducted following the following standards in all states:
- Proctored – the person would take the test at a professional testing facility under the supervision of a proctor.
- Timed – You will typically have around two hours for each exam.
- Multiple-choice – These tests will provide you with the question and four potential answers.
- Closed-book – the person would not be permitted for bringing any study materials inside the exam facility.
As previously stated, these examinations may be challenging, but with sufficient preparation and the appropriate courses or resources, they can be passed on an initial try.
Application for a license and background check
Every state has its procedure for obtaining a license. These applications may usually be completed online and cost between $30 and $200. Some states need this before your test, while others require it afterward, so be sure to check the individual steps of state. While reviewing your application, all states will conduct some sort of background check. Additionally, some may need fingerprinting before licensure. This is often done through a third party and costs about $30, give or take. If you have any concerns regarding the background checks or any other aspect of your state’s license, you may find the contact information for the state’s Insurance Department on the state’s licensing page.
Securities Licenses from FINRA
If an individual wants to pursue a career as a life insurance agent or financial adviser, the individual will need additional licensing in addition to the insurance license for the state. Selling life insurance or additional retirement products which are market-linked will need a FINRA federal license. In most instances, you will need to acquire Series 6 & Series 63 permits to sell these goods. The SIE test is a prerequisite for trying to get your Series 6 or 63 license. Certain agents elect for getting their Series 7 license rather than their Series 6 license since it permits them to advertise and sell a considerably wider range of securities products. However, the Series 7 test is the most challenging that FINRA offers, so make sure you understand which license best suits your requirements.
What Educational Requirements Are Required for Becoming the Insurance Agent?
The requirements and criteria for becoming the insurance agent are few in comparison to other occupations. Apart by licensure, the person would require a reasonably clean criminal record, excellent interpersonal skills, and the desire and capacity to learn.
Is A Degree Required to Become an Insurance Agent?
A degree is not needed to get a license for selling insurance or to obtain an insurance license. However, depending on the insurance firm or agency providing the employment, the qualifications may vary. If you decide to establish your own insurance firm, you will be self-employed. Understanding how a company operates will be a significant benefit for you and your team, but it does not need the degree in business. Working as a producer of insurance (which the majority of people refer to as an insurance agent) for an agency often does not need any college experience.
How Long Is the Process to Become an Insurance Agent?
Given the processes required to become the insurance agent, let us divide this down into sections:
- Obtaining insurance licenses – 3 to 6 weeks
- Obtaining insurance agent job – 2 or more than two weeks
- Obtaining FINRA registration– 4 to 8 weeks
These figures are approximations and are not guaranteed in any way. Exploring the perfect employment method may take much longer than two weeks. Utilize your best judgment to provide yourself sufficient time for doing tasks within the time frame you can allocate to it.
This post was written with the help of Fiverr. Fiverr is an online resources portal that enables members to sell their services on an on-need basis and allows me to purchase articles which I plan with them to write for you. The author, Dheera writes investing and insurance posts, she’s also written Insurance as an investment and Become an Insurance Agent. Subscribe for more business, sales and investing posts. Have a lovely day.
