While selling life insurance online may seem more attractive than traditional sales methods, it can be a complex process that requires more effort than just setting up a website. Successful online insurance brokers treat online sales as a critical lead generation strategy, requiring ongoing effort and attention. If you’re new to online insurance sales, here are some valuable tips to help you succeed.
To start selling life insurance online, you’ll enjoy the flexibility of working from anywhere with an internet connection. However, it’s essential to note that you must be licensed in your state to sell policies to the public, even if you’re operating online.
To start selling life insurance, you must comply with your state’s licensing requirements.
Step 1: Meet Licensing Requirements
Complete a pre-licensing insurance course: Finish the required hours of coursework, covering topics like policy types, industry regulations, insurance principles, and ethics.
Complete the life and health insurance exam administered by your state’s insurance department, demonstrating your knowledge of relevant concepts, laws, and regulations.
Complete a background check: Depending on your state, you may need a criminal background check before you can be issued your life and health insurance agent license.
Step 2: Identify Your Niche
After obtaining your license, focus on finding your specialty within the life insurance market. Life insurance policies include term, whole, universal, and hybrid plans. Consider specializing in specific types of policies or expanding into related areas like health insurance. Developing expertise in your chosen niche will help you establish a strong brand and successfully sell life insurance from home.
Step 3: Set Up Your Home Office
You’ll need a proper setup to sell life insurance from home successfully. Invest in essential equipment, including a reliable laptop, smartphone, strong internet connection, video-conferencing software, and a good headset. Create a quiet and dedicated workspace in your home. Additionally, check with your local business department to determine if any business licenses or permits are required, especially if you plan to meet clients at home.
Step 4: Master the Latest Technology
To succeed in remote life insurance sales, it is essential to become familiar with digital applications and automated processes. Most insurance companies have shifted away from paper applications, and understanding e-applications, quoting, and underwriting systems is crucial. Consider investing in customer relationship management (CRM) software to stay organized.
Step 5: Develop a Lead Generation Strategy
Finding quality leads is vital in insurance sales, but it’s also a significant challenge in a competitive market like life insurance. To stay ahead, create a solid strategy to capture the attention of potential buyers before your competitors do.
The Profitability of Selling Life Insurance
The profitability of selling life insurance depends mainly on your sales performance, as commissions drive a significant portion of your income. As an independent agent, your profits hinge on the difference between your revenue and operating expenses. According to 2022 U.S. Bureau of Labor Statistics data, the median income for insurance agents was $57,860. To achieve or surpass this income as an independent agent, you must generate substantial revenue to cover expenses. Top-performing insurance sales agents can earn upwards of $130,350 annually.
Is Selling Life Insurance worth it?
Selling life insurance can be a rewarding and lucrative career, but weighing the pros and cons before deciding if it’s right for you is essential.
Selling life insurance offers several benefits, including:
Minimal entry barriers: aside from obtaining a license, there are few obstacles to entering the field.
Strong earning potential: commission-based earnings can lead to high income and growth opportunities.
Job security: life insurance is in high demand, providing a stable career path.
Flexible work hours: selling life insurance from home can offer flexibility in scheduling.
Opportunity to make a difference: helping families secure their financial future can be fulfilling.
Ultimately, selling life insurance can be a good career path for motivated people who enjoy working with people and are willing to put in the effort to succeed.