Do Life Insurance Agents make Good Money?

Life insurance remains to be one of the largest industries in the United States. A lot of this has something to do with the flexible hours and decent pay. You can work on it on the side and it could also make you a fortune if you know how to put the work in.

But despite all the accolades given to life insurance agents, some people still doubt its credibility. Do life insurance agents make good money? We will be talking about that pretty soon but not before we discuss some crucial points about this profession.

Is Being A Life Insurance Agent For You?
Some life insurance agents will tell you that quitting their day job to sell insurances was the best decision they made for their career. However, some people will still advise you to hang on to your day job and that being a life insurance agent isn’t all it’s cracked up to be.

The truth is that this profession just isn’t for everyone. It will most definitely give you decent income. More than that, you will also have more time to yourself. You no longer have to be bound to clocking and clocking out.

But in exchange for these benefits, there are also some challenges that come along with it. First and foremost, to be successful in the realm of life insurances, you need to have the right personality.

You need to be a people person, someone who is really comfortable with mingling with different types of people. This job involves making a lot of phone calls and setting appointments.

You also need to get used to chasing people for follow-ups. And a lot of times, you have to endure being rejected with your offers.

If that doesn’t sound too challenging or too stressful for you then you might just have the right qualifications to be a life insurance agent.

How Much Does It Cost To Become A Life Insurance Agent?
So, do life insurance agents make good money? Before we move on to that, let us first talk about the investments you need to make to jump into the bandwagon.

To be a life insurance agent, you need to be knowledgeable about what you are selling. With that, you need to take a pre-licensing course required by your state.

In the state of Georgia, there is a service called ExamFX which we most recommend for you to take. They have a self-study course that will only cost you $149.95.
You will be given approximately two months to complete the course. Afterwards, there will be a simulated exam that you need to pass. After the successful completion of this program, you will be provided with a certificate.

Take note this does not mean that you are now qualified to become a life insurance agent. The certificate is only a prerequisite to be able to take the test required by your state.

In Georgia, the state exam will cost you $69. Take note that the fee will depend on the state in which you reside. After making the payment, you can visit a certified testing facility to schedule your exam.

You can expect to spend around $300-400 as an initial investment in entering the life insurance industry. You also need to pay for a Errors and Omissions (E&O) insurance policy.

This will cover your back when you have clients who claim that you have done insufficient work or that you have done some negligence while working with them.

You will have to renew this insurance policy per month. On average, you will spend roughly $63 on each given month.

Do Life Insurance Agents Make Good Money?
Yes and no. It depends.

Just like any profession, it takes time to build up your income and gain experience. On average, experienced life insurance agents can earn up to $100,000 per year. But that’s not the limit. Some talented agents can also make more than that.

As you start out, a realistic estimation of your earnings can be $2,000-5,000 per month. There is no approximate value as to how much you will make because life insurance agents don’t usually have a fixed rate.

How much you make will depend on the type of insurance that you sell, your commission, and how hard you are willing to work. If you want to have an edge in terms of income, you should opt to work for some of the top life insurance companies where the cost of insurance products are typically higher.

Life Insurance Agent Vs. Day Job: Which Is Better?
Some people may not be confident enough to sacrifice their stable income to become a life insurance agent.

If that’s something you can relate with, the good news is that you don’t have to quit your day job just yet. A lot of well-known life insurance agents start off as part-timers. Eventually, they were able to work their way up until they could afford to lose the day job.

Getting your first sales is easy. Once you get your license and sign a contract with a life insurance company of your choice, it’ll be easy to convince family and friends to purchase an insurance product from you.

The challenging part would be to maintain the incoming sales. The best way to move forward would be to make cold calls. Just look for prospects, smile, and make an offer.

As you go along, it is important for you to keep track of your prospects and communications. We recommend for you to use a CRM tool like Hubspot to make things easy for you to make the sales.

Final Takeaway
Here’s a breakdown of what you need to do to be a life insurance agent:
1. Take the pre-licensing course
2. Pass the state exam
3. Sign the contract
4. Find prospects to sell your insurance products to
There’s no shortcut to having a good life. Having an extroverted and bold personality gives you a great advantage in becoming a life insurance agent. But it also takes hard work in between for you to attain huge sales from this endeavor.

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