Types Of Jobs In The Insurance Industry & Career Paths
From actuaries to underwriters, there are many different types of jobs in the insurance field. If youre looking for information on insurance career paths and entry level job opportunities, heres a breakdown of the career roles in the insurance industry.
The insurance industry employs about 2.6 million people in the U.S. and that number grows even more when you include people in insurance functions who work at non-insurance companies.
What do all those people do? Some of their jobs are specific only to insurance, while others can be found in almost any company, but have unique aspects when applied to the insurance field.
For instance, actuaries, underwriters, and claims adjusters are all roles andcareer paths that pretty much only exist in the insurance industry. Actuaries calculate probabilities of future events, underwriters determine what risks are worth insuring, and claims adjusters analyze losses to determine how much people or businesses are owed through their insurance policies.
On the other hand, data scientists, sales agents, , customer service representatives and even risk managers work in all kinds of fields, but they play integral roles in making the insurance industry function.
Here are some broad categories of careers opportunities in the insurance industry. This isnt a comprehensive list, but it provides a solid overview of the key areas that make it all happen:
How Much Does It Cost
Like most kinds of insurance, the premium price can depend on the condition of the subject in question: in this case, the person that the insurance revolves around. If you are in good health, arent very old, and dont have a history of poor family health or financial troubles, it becomes much cheaper to get this kind of life insurance. If you are sick, already suffering from possible health conditions, and your family has had to claim health-related insurance relatively often, the price goes up, and you might even get rejected outright.
While whole life insurance will always cost more than term life insurance, mainly due to the cash value build-up involved, but you can lower the costs if you have a good record of health and finances. Some agencies might also ask for details about your career or living conditions to get an idea of how healthy you will be in the near future.
Opportunity To Provide A Benefit
Insurance is something that everyone needs, and it can provide a cushion in the event of an adverse situation, such as the untimely death of an individual or a natural disaster causing significant damage to a property. By selling insurance to people, agents have the opportunity to provide a great benefit to their clients. Health insurance can provide a cushion for health expenses and medical treatments, while auto and home insurance protect these valuable and necessary possessions. Life insurance is also beneficial because it can provide funds to the family members of someone after they pass away.
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Why Insurance Is A Career For Life
Being an industry of diversity and opportunity, its clear why insurance is an appealing career. Insurance is essential to everyone throughout life, making it a demanding industry with a variety of career opportunities worldwide. From working in life insurance, as an insurance broker or underwriter, there are numerous career paths to pursue.
Eager to know more about this rewarding industry? Here are our top reasons why insurance is a career for life.
The insurance industry has a variety of job opportunities and qualifications to start or advance your career. This provides you the potential to pursue an extensive range of career paths throughout your work life. There are opportunities to work in general insurance, life insurance, insurance broking, underwriting, claims, plus more. Within these categories, there are a variety of roles to suit different people and skills.
A diverse career is valuable for your development and youll gain a variety of skills along the way. Working in insurance allows you to take advantage of numerous opportunities and youll always have the potential to progress throughout different roles.
Learn new skills
In some insurance roles, youll have the opportunity to learn skills in analytics, numeracy, sales, marketing, research and problem-solving. Take advantage when the opportunity to learn new skills arises. You never know where this can lead later in your career.
You Can Develop A Broad Skill Set
Being an effective salesperson is a valuable talent when you work in insurance, but its not just a sales job. The industry touches every field and offers countless career paths. Insurance companies look for workers who have skills in:
Moreover, the insurance industry is continually evolving as customer needs do. That means employers are also interested in people who understand social media, digital marketing, and cyber communication.
What Do Insurance Agents Do
Much of your work as an insurance agent involves customer contact, beginning with calling potential clients to offer your services. Youll spend a good amount of time talking with your clients to discuss their existing coverage and explain the features of different insurance policies. Youll also keep track of insurance policy renewals and electronic and paper records for each of your clients.
Check out this comprehensive insurance agent job description for more details about a typical day in the life of an insurance agent and the skills and qualifications youll need to be successful.
How To Sell Insurance Successfully
Now lets discuss the top 5 qualities of successful insurance agents.
Additionally, Ill describe qualities that dont matter much, which may come as a surprise .
There are common traits that will show you how to be successful at learning how to sell insurance over the long-term.
Ive interviewed dozens of agents on my YouTube channel. And I know agents across the country in different niches that sell different insurance products.
Whats funny is that in doing these interviews for my best-selling book on top producers, Ive come to find that there is MORE in common with successful insurance agents than there are differences.
My goal is to uncover how top-producing insurance agents succeed at selling insurance in a short, straight-to-the-point way.
That way you can better understand how to mimic those behaviors and experience your own success.
Successful insurance agents believe that what theyre doing is MORE than just a job.
They believe in their heart of hearts they are doing GOOD work.
In a sense, some of the BEST insurance salesmen are evangelists by nature.
They want people to know how insurance helps solve problems.
Bottom line, they have passion and want to help!
Empathy Is Important
If you want to be successful at learning how to sell insurance, you must have empathy for your clients.
If you have contempt if you DONT like the people youre selling to OR if you dont like people in general
Youre NOT going to do well in the insurance business.
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Why Working In The Insurance Industry Is A Good Career Move
Why would you want to work in the insurance sector? To most people, working in insurance sounds likely to be boring. But in reality, the insurance industry is a very large and diverse field, supporting many career paths that may not immediately come to mind.
And for motivated individuals, theres no shortage of potential for advancement. But what are the pros and cons of working in insurance, and what kind of opportunities can you find in the industry?
Overcoming New Challenges Everyday
As discussed earlier, you may come across new challenges every day, and these challenges will prove to be your best trainer and make you experienced. Suppose, if you are a Salesperson, it may be very challenging most of the time to convince your clients to buy the insurance or say the right words to bring out that yes from them. It really requires a lot of wit, tactics, and skills to deal with different types of clients every day.
But, it is not a yes every time some clients are really hard to impress, and even if they say a no, it is a lesson for you to learn and keep in mind. So, you can understand, if you are choosing sales jobs particularly, every day is going to be a new challenge, and if you are adventurous enough, you would surely love these new challenges.
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Top Life Insurance Agent Employers
We’ve made finding a great employer to work for easy by doing the hard work for you. We looked into employers that employ life insurance agents and discovered their number of life insurance agent opportunities and average salary. Through our research, we concluded that American Income Life Insurance .. was the best, especially with an average salary of $89,035. Primerica follows up with an average salary of $91,536, and then comes New York Life Insurance Company with an average of $56,355. In addition, we know most people would rather work from home. So instead of having to change careers, we identified the best employers for remote work as a life insurance agent. The employers include None, None, and None
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Working In Insurance: Is It A Good Career
Insurance is a goodcareer for people who are always looking for new challenges. The industry is always changing, and there are always new puzzles to solve. Good work/…
- Few Barriers to Entry
- Variety of Work
Many people are drawn to the insurance industry because of the unlimited potential it offers to those in sales. Agents with limited experience can achieve financial success relatively quickly. While it can take time to build a book of clients, and we tell agents to count on the first few years not being lucrative, there is endless potential to make money in the long term. If you can start a good referral program, your current clients can help you continue to build your book of business. Independent agents are paid solely on commission, while captive agents will often get a combination of salary and commission. Either way, youve got plenty of opportunity to grow your income.
Due to the low barriers of entry, insurance sales is a good career choice for people who are transitioning into a new career following a major life change. It only takes a few weeks or months to study for the state licensing exam, pass the exam, and start selling insurance. A college degree is preferred but is not required in many insurance firms. Unlike many other finance-related positions, prior experience is also not required.
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Youll Enjoy Job Security
Insurance isnt going anywhere. Its been around for centuries, and it will stay as long as people continue to need medical care, drive cars, own homes, and run businesses.
During a recession, insurance is more stable than other fields. Thats because no matter the economy, people and businesses always need protection from risks.
Employment with an insurance company or an independent agency offers greater job security than other industries. So early on, you can begin paying off your student loans and start building a nest egg for the future.
How Do Insurance Agents Get Paid
Lets talk about how an insurance salesman gets paid.
Boiled down, there are 3 basic compensation programs for insurance agents.
Well describe each program, giving you the pros and the cons.
Then, Ill share my opinions on which is compensation program is best for new insurance agents.
One way insurance agents receive compensation is through a salary only arrangement.
Admittedly, this is a unique arrangement rarely seen.
And if you come across a salary-only setup, its based on a stipend or draw for a set period of time, usually for a few months.
Why are most insurance agent salaries temporary?
Because its designed to give new agents a financial boost in getting up and running selling insurance.
One of the biggest financial incentives of the insurance business is that the income ceiling is non-existent.
You can write your own check. In exchange, youll have to be paid on performance.
The truth is that if youre any good at learning how to sell insurance, you do not want your income capped at a lower salary than compared to pay-on-performance.
Next on the compensation discussion are programs paying salaries plus commission.
For agents working in career shops like New York Life, this compensation program is common.
Heres how it works.
Over a period of time , your compensation is based around a salary and commission on product sales.
Initially, the salary is higher and the commission payments lower.
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How To Become A Life Underwriter
If you’re interested in becoming a life underwriter, one of the first things to consider is how much education you need. We’ve determined that 73.7% of life underwriters have a bachelor’s degree. In terms of higher education levels, we found that 8.9% of life underwriters have master’s degrees. Even though most life underwriters have a college degree, it’s possible to become one with only a high school degree or GED.
Choosing the right major is always an important step when researching how to become a life underwriter. When we researched the most common majors for a life underwriter, we found that they most commonly earn bachelor’s degree degrees or associate degree degrees. Other degrees that we often see on life underwriter resumes include master’s degree degrees or high school diploma degrees.
You may find that experience in other jobs will help you become a life underwriter. In fact, many life underwriter jobs require experience in a role such as underwriter. Meanwhile, many life underwriters also have previous career experience in roles such as senior underwriter or customer service representative.
How Can I Get Whole Life Insurance
Getting a whole life insurance quote from insurance agencies isnt hard, although you are likely have to give them some personal details so that they can check you against their underwriting criteria. If you want to make the process easier, premiums price comparison websites can make the process faster by showing you estimated whole life quotes from multiple companies, as well as giving you a way to reliably filter through them.
Whole life insurance can be costly, meaning that term life insurance may seem like the more attractive option, but they are both worth considering if you are serious about supporting your loved ones. Each of them has upsides and downsides, but it depends on your current age, level of health, and how much you worry about unexpected deaths.
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Making A Difference In Peoples Lives
If you cannot leave an impact on peoples lives with your job, then what fun it is to work hard every day? When you realize the worth of making a difference in peoples lives through your words, you actually realize the worth of the insurance industry and how important are they in this modern world.
Selling Insurance Successfully: My No Bs How
Are you thinking about or currently selling insurance?
Are you looking for guidance on how to sell insurance successfully?
If this describes you, youve arrived at the perfect place!
In todays article, I provide a COMPLETE overview of what selling insurance is really like.
My goal is to break down EVERYTHING about the selling insurance into 10, easy-to-understand modules.
So read the entire article to get a detailed overview on how to have a successful career selling insurance.
NOTE: Are you an aspiring or new insurance agent looking for more insight on how the insurance sales industry works? Check out my free New Insurance Agent Resource Guide to help answer many of your questions .
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Understanding Whole Life Insurance
We all probably know what life insurance is, or at least the basics of how it is supposed to work. Even still, not everybody knows exactly why whole life insurance is a distinct, separate type, and understanding what it offers can be important if you are trying to figure out the best way of supporting your family after your death.
Whats Compensation Program Is Best For New Agents
Since learning how to sell insurance is inherently entrepreneurial, most new agents should seek a straight commission.
Sometimes, new agents partner with an agency that offers a salary or reduced commissions in exchange for perks like access to free leads.
Whats the problem with this set-up?
Long-term, as producers grow in experience and production, they lose out on the upper echelons of income.
Your perks become your downfall. All things have a cost, after all.
Pick the straight commission route as quickly as possible.
Yes, its scary to start learning how to sell insurance with no guaranteed income. But long-term, youll be glad you did.
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Do I Need Whole Life Insurance
Whole life insurance can be a good investment in some situations and risky in others, so you need to look at your situation objectively. Life insurance acts as a replacement for the financial income that you might be giving to your family, and it will always be paid out on your death never before. While it might seem morbid, your chance of death can be a major part of the decision, since it is the event that triggers the insurance pay out.
If you are already considering getting some form of life insurance, take a look at some whole life quotes and get an idea of what you might have to pay. It is good to be informed, regardless of which option you end up choosing in the long run.