The selling insurance from home it is a viable business that many insurance agents undertake. Many small insurance offices are in the home of the insurance agent. Many prefer to work from home rather than in an isolated office due to flexible working hours. Many insurance clients like home offices because they are less cold than a larger office equipped with many agents.
How to start an insurance sales business from home
Each state requires sellers of insurance to be licensed in the state in which they want to sell insurance. Licensing requires taking an insurance course to understand the number of insurance classes available and the seller’s legal obligations. There is also a state licensing test in which you must pay a fee to the state. In many states it is illegal for an insurance company to pay this fee on behalf of a prospective employee, so the person doing the test must pay the fee in most cases.
Tips to become an insurance sales agent from home
1. Become an employee of an insurance agency, such as a brokerage that sells insurance on behalf of several different companies. You can also choose to work for a specific insurance company. Since you will be working from home, most companies will likely want to hire you as an independent contractor, rather than as an employee of the company. As an independent contractor, you may not have the benefits that come with being an employee. Negotiate rates for group health insurance if you are hired as an independent contractor, and keep track of your earnings to pay your own rates. These contractors are not subject to any employee with tax withholding.
2. Install a dedicated landline phone in your office, a computer for keeping records and a filing cabinet for keeping hard copies of insurance contracts.
3. Make sure you have enough clients. Some insurance agencies will provide you with potential clients on a daily or weekly basis. Others sell you clients when you need them. You must also market your services to find your own customers by distributing business cards and placing advertisements in newspapers offering your services.
How to get a license to sell insurance
Get a license to sell insurance it can be a step toward a stable career choice, giving you options to sell health or life insurance and financial planning tools such as annuities and mutual funds. Some licensed insurance agents may offer additional comprehensive financial planning services, such as estate and retirement planning. Some states require multiple or separate licenses based on the type of insurance you plan to sell.
Visit the website of the insurance licensing board of your state to determine the specific requirements for that state. Most states require applicants to take and complete specific pre-bachelor’s courses as well as pass the state licensing exam, according to the Bureau of Labor Statistics.
Enroll in any required pre-licensing course and complete as instructed. Some of the courses that may be required include Insurance Principles, Insurance Laws, and Insurance Ethics, according to the Wisconsin Office of the Insurance Commissioner.
Register for the next insurance exam in your state. Some states may allow you to take the test online or in person at any time, while others issue the test only on scheduled dates and times.
Pay the required exam fees and any criminal investigation or background check fees that may be required by your state, then complete the insurance exam according to your state’s instructions.
Steps to obtain an insurance license
A insurance license allows a person to order and sell insurance products. The license is issued by the state insurance commissioner in the state where you intend to apply for and sell insurance and is separated into different types of insurance, including life and disability, health, auto, or worker’s compensation. For anyone who lives in one state and sells insurance in neighboring states, a license is required for each state. You do not need to be affiliated with a registered agency to be licensed, although this is necessary once you intend to do business.
1. Go to the website of the state insurance commissioner where you want to obtain a license. If you cannot find the contact information, go to the National Association of Insurance Commissioners for the national directory. Look for the “agent licenses” tab.
2. Choose the insurance category you want to work on: automobile, home, health, life, bonds, business. Each state breaks down the categories differently. Choose the one that corresponds to your career goals.
3. Read the regulations and checklist required to obtain an insurance license. Although each state is different, the general requirements include a background check, class hours, and passing a state-administered exam.
4. Provide a background history, fingerprints and employment history as required by the application. Notaries public, police stations and private mailboxes often provide fingerprinting services for remuneration.
5. Register and attend the class. Classes review insurance basics and regulations. Most classes require a check-in and check-out procedure to ensure that each prospective insurance agent completes the required class hours.
6. Obtain study materials for the exam. You can get this through your class instructor, an employer if you are already with an insurance company, or through bookstore and online retailers.
7. Register and pass the test with a 70 percent or better.
- Once you have approved, register with each insurance provider you want to work with. You can be hired as an official agent or serve as a broker for various insurance companies, giving your clients a variety of insurance options.
- In some states proof of insurance license is not necessary if you have a current license in another state or if that license has not expired for longer than the allowed time. In Wisconsin, for example, the exams are not necessary if you have had an insurance license from another state in the last 12 months.
Salary Information for Insurance Sales Agents
Insurance sales agents earned a median annual salary of $ 49,990 in 2016, according to the U.S. Bureau of Labor Statistics. At the low end, insurance sales agents earned a 25th percentile salary of $ 35,500, meaning that 75 percent earned more than this amount. The 75th percentile salary is $ 77,140, which means that 25 percent earn more. In 2016, 501,400 people were employed in the United States as insurance sales agents.
Requirements and costs to be an Insurance Agent in Florida
The requirements to be an insurance agent in Florida are very simple: be a resident, or be in the process of obtaining residency and / or have a work permit, be over 18 years old and have a satisfactory moral conduct.
Here are four steps that show you how to get a license to sell insurance and become a salesperson.
1-REGISTRATION IN THE SCHOOL OF INSURANCE AGENTS: The first thing you need to know about getting a license to sell insurance in Florida is to enroll in a school certified by the state of Florida or the state you belong to to get pre-licensed.
There are countless Approved Schools in Florida to get licensed insurance, and in the United States, you can locate a few where you live. You need to define what type of license you need, they can be:
- License 215: Life-Health Agents and Variable Annuity (Health Insurance Agent, Life Insurance and Annuity)
- License 214: Life and Variable Annuity Agents (Life and Annuity Insurance Agent)
- License 240: Sanitary Agents
The first, Life, Health and Annuity, is recommended, since it is the most complete. The important thing about doing this is that you study only once for the 3 licenses. The book is the same and the costs for the school and the exam are similar.
School is not optional, it is compulsory. The state requires you to take the exam to pass school. The cost of the school can be from $ 250 to $ 300 maybe more, depending on the license you want to get. The important thing is that this price includes in many cases, the study materials: Guides, Questions and Answers, Orientations to take the State Exam and the essentials: The book of the edition corresponding to that year.
Insurance School doesn’t take long. It’s a few hours a week, maybe 40 hours and you’re done. You can do it on weekdays or 2 weekends, depending on the availability of your schedule. Attending School is not the only option you can make online at certain authorized sites.
Still, the knowledge provided by the School of Insurance is only the beginning of what you need to take the state exam. A great daily effort is required for you to finish school appropriating the knowledge through the Manual-Book or other study documents.
2- PREPARATION PHASE FOR THE STATUS EXAM: This stage is decisive for the success of the exam. It is assumed that you already have the insurance school certificate (Certificate of completion) for having successfully completed the course. This document is invaluable as you must submit it to the state as part of the documents to request the agent exam.
At the school you will receive precise instructions to access the official website of the State of Florida to start processing your documents and give you the date of the exam. The approximate cost is $ 111.00
When instructed to do so, you must take fingerprints, which are required by the State of Florida. (Approximate cost of impressions $ 60) Remember that I speak directly with you about the state where I live. The specifications for the other US states that you should find out. I imagine that the procedure is similar, however it is necessary that you look for the specific information that corresponds to you outside the state of Florida.
It is important that you master the State websites to obtain the Health Insurance and Life Insurance Agent License. The information on how to obtain a license to sell insurance on these sites is official and can be very helpful to you.
3-THE STATUS EXAM: When you have all the documentation required by the state and your finance department you should request the date of the exam. It is important that you set the date and time well. Try to be the right one for you.
4-PREPARATION TO SELL WITH DIFFERENT COMPANIES: You finally have your license and you can sell. Are you ready!