Are you considering a career in the insurance industry? If you are looking for more information about the profession, you are in the right place. Find out more about what the day-to-day of an insurance industry professional is like, as well as the expected job growth over the next decade below.
Insurance agents sell one or more types of insurance for insurance companies. They help clients understand differences in insurance policies and help them choose what plans are best suited for them. Typical job duties for insurance agents include:
Along with skill sets, there are traits that can help you succeed. Learn about them here.
According to the Bureau of Labor Statistics Occupational Outlook Handbook, employment of insurance sales agent is expected to increase by 10% from 2012 to 2022. This is higher than other sales and related occupations, which are expected to grow by 7%.
Employment growth should be even higher for agents selling health and long-term care insurance due to the aging population. There is also more opportunity for growth as more people have access to health insurance from federal health insurance reform legislation.
How Much Do Insurance Agents Make?
The median annual wage for insurance sales agents was $49,710 in May 2017, according to the Bureau of Labor Statistics. The lowest 10% were paid less than $27,180 and the top 10% earned over $$125,190.
Insurance agents are often paid in one of three ways: salary only, salary and commission, or salary plus bonus. In some situations, agents who do financial planning receive a fee for their services instead of commission.
Commissions are a common form of payment, particularly with more experienced insurance agents. The amount of commission varies on the type and amount of insurance sold, and whether it is a renewal or new policy. Bonuses are sometimes given to agents when individual or agency sales goals are met.
How Do You Become an Insurance Agent?
The process for becoming an insurance agent depends on what lines of authority you want to sell and what states you want to sell in. You also have to pass prelicensing exams. For more information on becoming an insurance agent, visit our article on this topic. If you're thinking of becoming licensed, exam preparation can help.
As an aspiring insurance professional, wouldn’t it be great if you could sit down with a room full of successful insurance veterans and ask them for their advice? The Kaplan Financial Education team interviewed over 100 insurance professionals to develop this exclusive eBook for those who are considering the insurance industry.