If you landed on this page, you probably Googled: “How to become an insurance agent”. This blog will explain how to become an insurance agent with no previous experience, list the specific insurance licensing requirements, explain why you might need an insurance license background check, break down how much it costs to become a licensed insurance agent, describe the best jobs in the insurance industry, and much more.
After having your questions answered through this article, you’ll realize that it’s easier than you think to determine if insurance is a good career choice for you. Ready to start reading? Let’s begin with the 9 things you need to know about becoming an insurance agent:
Many people who become licensed agents have not previously worked in the financial services industry. Most start their insurance careers after high school or college. Others choose to change careers to work in this field. The people who join this industry and become successful do it through hard work, their ability to sell, and great people skills.
When considering a career in insurance, one of the first steps is to decide the particular type of insurance that you want to sell: life insurance, health insurance, personal lines, property and casualty, variable products - or a combination of lines of authority.
When applying for an insurance license, depending on the state where you live, job requirements may include:
Many professions require that you obtain a license or certification to work in a particular field. The insurance industry is no different –– all states require a license to sell insurance. However, because the insurance industry is regulated by the state’s department of insurance (DOI), each state has different licensing requirements.
Fortunately, ExamFX has made it easy to learn how to apply for a license and find the details of each state’s requirements. Visit our DOI Contact Information page and click on your state’s DOI website to be directed to all the information you need.
The 2018HR.com Report sponsored by the National Association of Background Screeners (NABS), reported 95% of U.S. companies conduct some type of background check on potential employees before they’re hired –– making background checks very common across virtually all industries. Fingerprinting for insurance licenses has also become a common state requirement.
Background checks verify your identity, age, where you live, previous addresses, education, and work history. But they also check criminal records, credit and driving reports, and more.
That’s why the insurance license background check is such an important step in your pursuit of becoming an insurance agent.
As you learn how to become a licensed insurance agent, you probably want to know how long it takes to get an insurance license. Depending on your state's specific requirements, obtaining your insurance license can take as little as a few weeks or up to a couple of months.
Some state DOIs have a minimum prelicensing study requirement, ranging from 20 to 200 hours per line of authority. The most efficient way to prepare for the state licensing exam is to enroll in a high-quality insurance prelicensing course with a proven success track record. With so much riding on this exam, using a prelicensing exam provider will not only make your studying more effective but will also increase your ability to pass your exam on your first try and quickly obtain your license.
The total cost of becoming a licensed insurance agent varies from state to state. It may include the cost of a prelicensing course, state insurance license exam fees, and an application fee.
Another cost you may have to pay on your journey to become a licensed insurance agent is your background check/fingerprinting costs.
The total cost will depend on your resident state requirements and the type of insurance you want to sell.
Just like insurance license costs, state licensing requirements vary from state to state. Your state's DOI regulates items such as certification requirements, hours of prelicensing study, and state exam specifications.
It’s very important for candidates to familiarize themselves with the state insurance licensing regulations. At ExamFX, we’ve made the process simple by building a comprehensive State Insurance Prelicensing Requirement page. Just navigate to the website and click on your resident state (the state where you live or work and where you will be primarily conducting business). Your resident license comes first. Then, when you want to transact business in other states, you will apply (and pay) for a nonresident license in those other states, but you don’t have to study or take another exam.
All states require candidates to pass a licensing exam for the major lines of authority. While the core information on the exam is similar, individual state regulations may differ. That’s why reviewing the state exam content outline is so important, available on your testing provider’s website. The outline provides specific information about the exam, including testable concepts, state regulations, the number of questions on the exam, and the number of questions by topic. Becoming thoroughly familiar with your state’s specific guidelines will help you stay focused in your studies and pass your exam.
Selling life insurance and annuities is generally considered among the most lucrative lines of authority because the policies tend to be high value and are usually kept in force over longer periods of time, paying the producer commissions upon each renewal. Many producers also find success selling Commercial Lines and other specialty property/casualty coverages. Any line with high policy values will likely offer higher commissions but will also require greater product knowledge and experience to sell.
A career in insurance sales offers you freedom and flexibility from a traditional 9-to-5 desk job, a relatively easy transition into a financial services career, and a potential for earning a high income.
Yes! The U.S. Department of Labor February 2023 Jobs Report revealed that there are more than 6.6 million people employed in the finance and insurance sectors.
There are many positive aspects to a career in insurance, including minimal barriers to entry, opportunities to provide benefits that positively impact your clients’ lives, an estimated growth rate (per the Jobs Report) of 5% by 2030 (approximately 27,500 jobs), and the opportunity for a flexible work schedule.
In addition, a career in insurance can provide a stable and significant livelihood while providing needed protection for family, friends, neighbors, and community members. Adequate insurance coverage protects families and businesses from unexpected financial losses and helps them plan for their financial futures using various life insurance products and strategies.
A career in the insurance industry provides licensed agents the ability to:
Now that the questions of “how to become an insurance agent?” and “how to get into insurance?” have been answered, it’s time to consider your prelicensing training.
ExamFX helps candidates pass their licensing exams by providing insurance and securities exam prep. This first step opens doors to a rewarding career in an industry that can have an enormous impact on people’s lives and their wider community.
Since 1996, ExamFX has been the industry-leading insurance and securities training provider. Over that time, we’ve helped more than 8.6 million candidates gain their insurance licenses and over 85% pass their exam on the first try.
Today, our innovative, comprehensive training courses in all 50 states are designed to help you succeed on your first try—guaranteed. That’s why millions of individuals are successfully selling a wide variety of insurance plans, including life, health, property and casualty, personal lines, adjusters, and variable products, among others.
To enroll in one of our training programs and empower your success, get started here.