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How To Become An Online Insurance Agent In The US?

Online Insurance Agent

Becoming an online insurance agent can be a great career move for those who have a go-getter mindset and love to hit the ground running for endless opportunities. That is true It has the potential to make you a great living when you become a successful online insurance agent. In fact, those who manage to lead their insurance career to a victorious avenue make millions of insurance sales a year.

That being said, it is important to note that leading to a successful insurance career is not that easy and the pre-caution is lifting up the honourable trophy of success in this field isn’t for everyone who isn’t ready yet.

What is the Role of Online Insurance Agents?

Not much different from what traditional insurance agents do, online insurance agents are the people who work for insurance companies and sell insurance policies to customers but, are based online.

Their job is to help people protect their assets, property, family, and future by providing them with the right type of coverage.

The role of an agent is not just limited to selling insurance policies. They also provide advice on how to protect yourself against different types of risks and hazards.

They take care of everything from helping you understand your policy to answering your questions about claims.

The majority of work of online insurance agents is carried out on the internet using a communication messenger, social media, or the company’s dedicated communication platform (website or mobile app) if you are employed by an insurance company.

What is the hardest part of being an insurance agent?

The hardest part of being an insurance agent is the constant pressure of meeting sales goals. This can be especially difficult for people who are introverted or have social anxiety.

The burden for making sales is even accumulated when you don’t have a sufficient following/client base. It’s challenging curves that most newcomers struggle with when they set foot into the industry.

Another hurdling of being an online insurance agent is the constant rejection that they have to face. They have to constantly convince people to buy their products and it easily gets tiring after a while. #burnout

Most novice insurance agents rely on sales from whom they know at the beginning — such as their family, friends, and even friends’ friends. It might work in the beginning though, it shortly leads to a difficult time when they used up the limited opportunities, or even when it causes trouble in the relationship with the people.

How much do most insurance agents make?

According to the U.S. Bureau of Labor Statistics, the median income of insurance sales agents is $49,840 per year, $23,96 per hour in 2021.

The pay for the job position varies greatly, with the lowest 10% earning less than $26,120 and the top 10% earning more than $116,940.

For the majority of online agents, the income isn’t very stable compared to the most rewarding online jobs, and earning a high income fairly depends on each one’s capability of producing sales.

What Are The Requirements to Be An Online Insurance Agent

The requirements to be an online insurance agent are not as difficult. Although it depends on the state you’re living, it’s thought about 100 hours to complete all the requirements that need you to take to become an online insurance agent.

In addition, you will need to have a high school diploma or GED and it’s always beneficial to have any relevant experience in the field of insurance.

As for conducting your sales online, you also need a computer with a stable internet connection, a phone, and some basic knowledge about the insurance industry.

There are lots of training courses online on how to sell insurance policies that you can benefit from to prepare beforehand.

How to Become An Online Insurance Agent (Step by step guideline)

The following steps are necessary to go through to become an online insurance agent in the US. It’s said it typically requires about 100 hours taken for all the preparation before the entire process is completed, typically a couple of weeks to slightly longer than a month.  

Step 1: Choose What Insurance Products You Will Sell

The first step is to start thinking about what type of insurance you want to sell.

This is the first step in starting your own insurance career. It’s important that you choose the type of insurance products that you will be selling because this will help determine which types of clients you are able to work with.

You can use a variety of resources to help you decide what insurance line to go with. For example, there are industry-specific directories and trade journals that can provide information on the various types of insurance products available as well as their respective targets and markets.

In addition, many colleges and finance institutions online offer finance classes that teach students about the various types of financial instruments available including insurance courses.

Step 2: Decide which type of insurance agent you want to become

One of the most important decisions you will make as an insurance agent is whether to work as an employed or independent agent.

Each one has its own pros and cons. It may need to consider which type is best suitable for you based on your circumstances, personality, and level of prior experience.

  • Captive agent

Captive agents are employed by an insurance company they represent. They are paid a salary and commission and typically have access to training, education, and other resources that independent agents don’t get.

Being a captive agent is beneficial for new staters as it is easier to secure their basic salary and many learning opportunities provided by the company.

Many seasoned agents recommend newcomers to start being a captive agent and gain experience first before deciding to work independently later on.

  • Independent agent

As the name suggests, it’s a kind of freelancing and your own business.

one isn’t employed by a specific insurance company but instead, represents multiple companies for their insurance sales.

They have to find their own clients, negotiate rates with carriers and do their own marketing. This can be both more challenging and more rewarding than being a captive agent.

If it’s an agent who knows the game very well, this position can bring lucrative earning potential.

Step 3: Complete an Insurance Pre-licensing Course

Time to move on to the pre-exam course. In order to qualify to take the license exam, completing a pre-exam course is essential.

The required hours to complete the courses differ from state to state. Some states require only one day course to complete it whereas other states will require you to devote longer hours such as 20 – 40 hours to finish it up.

An easy part about going through this process would be that all courses are done just online in your comfort of home or any preferred space you like. Once you complete your courses, you will be granted a certificate which you will have to present to the exam administrator at your exam.

Step 4: Pass Your Insurance Agent Exam and Apply For the License

The insurance industry is a complex and highly regulated industry. It requires you to pass an exam to be a licensed insurance agent and this is a mandatory process you have to go through before building your career.

The coursework for getting your license varies from state to state so it’s important to find out what will be required in your area before beginning the process.

The exam is multiple choice answer based and it isn’t very tough to pass if you have completed the pre-exam requirements. You will arrive at the scheduled time, sit down at the computer and start answering the questions.

And when the exam is done, the exam result is notified immediately, right on the spot, and with the certificate, then, you will be qualified to apply for your insurance agent license right away.

Step 5: Find Insurance Carriers For Insurance Agent Appointment

To kick off your insurance career, it’s mandatory to be appointed and given the authority by an insurance carrier(s) in order to sell their insurance policies.

And this would be when you need to choose to be whether an independent or employed insurance agent. The range of insurance policies you can sell differs from which type of agent you are. An independent agent will have a wider choice to sell insurance products by cross-applying for multiple insurance carriers while an employed agent can only deal with the specific company’s product lines.

Step 6: Now All Set to Sell Your Insurance

Whether you choose to be an independent or employed agent, you are legally given the right to sell your insurance now.

And what next is to set your insurance sales goal and target your prospect group. Many insurance agents start by selling it to their intimate group and gradually expand it to larger sales groups.

As it’s an “online” insurance sales, it’s wise to capitalize on the huge network of the online channels and start building the sales funnels across many internet platforms such as social media, blogs, Youtube, and email.

So, this step is where you will realize how important your “strong personal brand” is to go long-run in the marathon game.

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