What type of insurance do you want to work with?
In fact, when you are an insurance agent or general manager, you do not typically sell every single different kind of insurance, such as life insurance, health insurance, car insurance, or homeowners insurance. Instead, you specialize in one of these areas and focus on that. However, you may sell several types of related insurance, such as both property and car insurance.
Life insurance agents sell policies to customers that protect beneficiaries in the event someone dies, such as a family's major breadwinner. These types of policies might also provide retirement income, provide for children's education, or other monetary benefits.
Whatever the insurance that is sold, is done as a protective measure to protect those who hold these policies against losses they could not manage to surmount themselves. Insurance holders pay premiums to keep insurance policies in force, and this is how the insurance industry makes its money. The insurance industry basically, banks upon the fact that disastrous consequences (whatever they may be) are not going to happen to most of its customers. Therefore, it will make its money by that vast majority of customers who pay premiums but never collect on their policies, and then make payouts to those few customers who do have to collect on their policies in the event of tragedy or unfortunate event.
Of course, insurance agents also sell health insurance, and this is not, about monetary payouts. Instead, it is about providing a means by which customers can maintain their health, buy health services, practice prevention, get necessary medications, and so on that is cost effective and also makes the insurance company money. In fact, this has been rather problematic for many customers who wish to buy health insurance, because it can be expensive for those who are deemed to have "pre-existing" conditions that the company would not cover.
Nonetheless, an insurance agent's job is to help customers find the best policy possible, if possible, for whatever type of coverage they need.
Duties of the job
In addition to selling policies to customers and maintaining relations with customers in the event of unfortunate circumstances that may require monetary or other compensation, insurance agents also maintain records, prepare reports on any claims filed, and continually seek out new clients to fill out their roster.
As the Internet and other technology have streamlined the process, insurance agents have been able to take on more clients than previously possible. Today, clients can get instant quotes via the Internet for just about any type of insurance they want, and "hook them up" with an agent in their area who is specializing in the particular type of insurance they want. This means that insurance agents may spend significantly less time than they used to trying to attract new clients via cold calls or mailings, etc. versus what they previously had to do. This type of new technology also means that applications and other paperwork can be processed much faster than was previously possible, all of which means that agents can take on more clients because they have to spend significantly less time doing these other more mundane tasks.
Background and education
Depending on the type of insurance you want to sell, you must take and pass an examination(s) issued by your state to obtain a state issued license. Licensing requirements change from state to state, but usually you must take a course (often self-study or via Internet) and then pass one or several exams. In addition to taking the state coursework and exams, you will also receive on-the-job training by someone who is usually an assigned mentor. In this way, you will learn about the company's products and services specific to what you will be selling.
Although many companies prefer to hire college graduates, it is not absolutely necessary. Previous sales experience is also something companies look for. Although you may begin your career as a customer service representative or some other lower level job, you can also be promoted to sales agent, general manager, etc., later on as you move through your career.
Other necessary skills
You have to enjoy working with people, actually have their best interests at heart. You must be confident and be able to communicate very effectively, both in writing and through the spoken word. You will need to be self-starting and have the initiative to get new clients on your own (and in general do the job at hand) without supervision or prodding.
In addition, because many insurance agents are now getting involved in financial consulting in regards to some types of insurance, it is useful to have a background in finance or a related field if you wish to get into this area. In some cases, it may be necessary to have a college degree in finance or a related area to get these types of product management jobs.
Compensation and Outlook
Because many people consider insurance a necessity, the insurance industry is not significantly expected to drop despite difficulties in the economy at present. If you speak more than one language, especially English and Spanish, your job prospects are significantly better than if you only speak English.
Most insurance agents work on commission, so incomes can vary widely. However, across all types of insurance and on average, insurance and sales agents made about $44,000 as of 2006.
