What is the hardest part of being an insurance agent?
Understanding Client Needs
Being an insurance agent is a great career choice, but that doesn't mean it's always easy. Slow sales, angry clients, and tight deadlines can all lead even the most successful agent to feel exhausted and unproductive — in other words, feeling burnt out.
Even when pitching to the most-qualified prospect, do not assume you have an easy sell. Life insurance is a very difficult product to sell. Simply getting your prospect to acknowledge and discuss the fact they are going to die is a hard first step.
A sales career in health insurance (or virtually any industry) can be challenging. Clients are not always easy to deal with; some may view your role negatively. Rejection is a routine part of the job. The burnout rate for first-year insurance agents is high; according to some sources, it tops 90%.
Building trust with potential clients is perhaps the most demanding part of selling insurance. It requires more than just pitching policies and presenting numbers; it's about establishing a personal connection, actively listening to their concerns, and providing them with comprehensive solutions.
Money typically plays a role, as does helping people. But it's very common for agents who just focus on money to fail or decide to quit. The best insurance agents will want to help their clients. Clients can tell the difference and are more likely to stick with an agent and agency that prioritizes their best interests.
That is a 90% failure rate for new agents.
Most independent marketing organizations will train insurance agents on all the products they want them to sell.
Limited Paid Time Off
As an independent insurance agent, you are basically your own boss. You have the freedom to decide how you want to run your business. On the flip side of that, however, you won't be given paid time off or sick days. The same goes for holidays.
Insurance is widely considered an “evergreen career,” one which typically offers excellent job security. Bureau of Labor Statistics research predicts that positions for insurance professionals will likely grow by 6% from 2021 to 2031, with approximately 32,900 new jobs per year.
- Galvanized and lead pipes. Homes built or renovated before 1980 often contain lead or galvanized steel water pipes that can rust over time. ...
- Oil heating systems. ...
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- Pools and hot tubs. ...
- Basem*nts. ...
- Fireplaces and wood stoves. ...
- Home business.
What kind of insurance sells the most?
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
After a lot of studies, it appeared that selling mortgage insurance was the easiest way for new agents to close life insurance sales.
The most commonly cited reason insurance agents fail is that they fail to listen to their customers and take the time to find the best product to suit their needs. Agents who bring the right solutions to customers build trust, and that helps them build a book of loyal customers.
- Present yourself like the professional you are.
- Build customer relationships, and ask for referrals.
- Be proactive when client policies are almost up.
- Cross-sell or upsell other products tailored to your client.
- Improve SEO to make it easier for leads to find you.
While InsurTech is growing in popularity and direct carriers remain popular, insurance agents are not going anywhere soon.
Now, if you find the money to close just 4 life insurance sales per week for $5,000 each. Then you will earn $1,000,000. Yes, it is that simple to make a million dollars per year selling life insurance! But, only if you will take the time to follow our Trusted Advisor Success Program™…
If entrepreneurship is your goal, there is plenty of opportunity for someone seeking a career in insurance sales. That said, it'll be tough going, especially at first. Agents have to have thick skin and be able to handle rejection. After all, they're all selling the same products, for the most part.
While it is possible to earn a significant income by selling insurance, becoming "rich" solely from insurance sales is not guaranteed.
In fact, many agents new to insurance are fearful, knowing they face a high risk of failure. How many agents quit selling insurance? There isn't an exact number. But we figure somewhere between 90% and 95% of agents quit in their first 12 months of receiving their license.
Many insurance agents agree they love the variety of work insurance sales provides. There are some tasks that need to be done on a regular basis, but for the most part, agents are constantly meeting new people and helping them achieve their financial goals.
Do people enjoy being insurance agents?
It's also a good career choice for people who like flexibility and a certain degree of autonomy. Being an insurance agent isn't the easiest job in the world—stress and rejection come with the territory—but if you thrive in high-octane environments and enjoy working with people, you just might love it.
It could take anywhere from 18 to 24 months for your insurance sales to actually provide profit. Don't feel discouraged. Every small business owner has to clear this hurdle.
Executive Life Insurance Company (1991) - One of the largest life insurance companies in the US, it went bankrupt due to investment losses in junk bonds.
97% fail ratio of new agents in the scratch agency category. - Independent Agent Allstate Employee Review.
Great insurance agents will be able to provide education to clients on their options. This can help ensure that customers understand the various insurance options available to them, the costs involved, and what each option covers. This will help them make the best decisions about which best suits their needs.
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