Question by Scott P: Insurance Career?
I am considering a career change into insurance. I have previously excelled in competitive sales environments (car sales). I am confident in my sales ability, but I have a couple of questions.
As far as long term monetary success, what type of insurance would you suggest I sold.
I live in Texas and what certifications / Licenses may I need to get?
How long will it take to get to making 70K or more a year, with hard work and 60 plus hours a week.
What else should I be considering as far as making this decision..
Please specify if you have specific experience selling insurance and what type you sold when you answer.
Thanks!
Best answer:
Answer by Phil
Insurance sales is a tough field to break into. Your skills in sales will help. However, there are two main issues you have to overcome to be successful. First, there is a huge learning curve. Which ever type of insurance you choose to sell, you have to learn about the various contracts you are to sell. Your decisions about what to sell to a customer can leave you open to a lawsuit for your errors. It really takes 3-5 years of full time work in the insurance field before you get a good grasp on the subject matter.
Next, success in insurance sales depends on renewal and repeat business. The key is to get people to buy from you, and to renew each year. Once you gain enough people doing this, you can make a living. It is very tough for a person just starting out to sell enough to live on. This is why most agents come from working up from CSRs, company positions, or children of existing agents. It can be done, but it is a long road. Enough of the negative, on to your questions.
1) There are two major types: property & casualty (P&C) and life, who often deal in investments too. Some agents do both. (My background is P&C.) Both types can make great money. I think that life agents are more successful if they get their investment license also, instead of just selling life policies. Either way, since you are just starting out, I would recommend that you pick one type instead of attempting to tackle both. They are different, and it would lengthen your learning curve.
2) I don’t know Texas law, but I’m sure there is an agent’s license. This is the start of your insurance education. The license you need will depend on the type of insurance.
3) How good are you at sales?
4) Insurance is not another product to sell. It is a profession. If you want to break into this field, you have to be willing to dedicate yourself to understand the insurance business. If you are looking for a different product to sell, this isn’t the right career move.
Add your own answer in the comments!
{ 2 comments… read them below or add one }
I am a Independent insurance agent–I have my P&C and Life/health license. The big bucks are in selling commercial insurance. Selling businesses property/general liability/group medical insurance.. They give you the biggest commissions AND are also one of the toughest to sell to and close. Plus, if you lose the account to another agent-OUCH you feel it. I would offer a good mix of commercial and personal p&c. You would need to get your general p&c/life and health license. In MY opinion you are better off working for a independent insurance agency. They offer wide variety of products that you can sell and generally represent enough companies to make sure you have the best price to offer.
As far as the 70k within 2years. Since your NEW in the insurance arena–MAKE sure that you are going to get someone that will mentor you and take the time to show you the ropes..In this business its not just selling its product knowledge.You can be the best sales person BUT if you do not know your product-coverages you will fall flat on your face when the client is grilling you about coverages. This is a rewarding career and you can make a very good income.
Best of luck!
Well, I’m in Texas. I prefer P&C to life. Sure, you get MASSIVE commissions up front on the life, but NO continuing commissions to speak of. Plus, P&C is more fun, IMO.
If you can sell, and are willing to put the time into it, you CAN make $ 70K your first year. Most people that wash out have no sales experience, and expect the business to come to them.
One thing to consider – MARKETS. You want to get with an agency that has STRONG support staff, so you can sell and don’t have to “maintain” your account (cuts into selling time). You want National carriers, and a wide variety, so you can PLACE the business competitively.
Check out the TX insurance dep;artment website for licensing info . ., it’s not too tough if you study.