Is A Career In Insurance Lucrative? Unveiling Agent Salaries
If you are working as an insurance agent, you have many rewarding and lucrative options to build a career in sales. In this way, you can choose your working hours. Here, you have to follow some steps if you want to build your career in an insurance company, like if you want to change language on Netflix.
Also, if you want to pursue this role, then two options are available. One of the most important things about an insurance agent is understanding the training, license, and education for this role.
These things will help you decide whether this career option is right for you. In this article, I will discuss how much do insurance agents make.
How Much Do Insurance Agents Make?
Whether you are a curious customer or an insurance professional, this information will help you by giving some helpful information. Below, I am going to discuss how much insurance agents make.
If you want to pursue your career as an insurance agent, then it means you can earn up to $79,650, and you can earn $37 hourly. This data has been collected from the Bureau of Labor Statistics. When this is about making wages, it can be significantly lower than the usual number.
In coming up with some averages, the bureau considered many types of insurance agents, including casualty, life and health, and many other insurance policies, for an employment estimation of 455,540.
After a thorough research, I have come up with the question of how much does an insurance agent make with the percentile wage estimates of insurance agents such as:
- The annual wage of a 10% insurance agent is $31,530, and hourly it would be $15.56.
- The annual salary of up to 50% of insurance agents is $57,869, and it would be $27.82 hourly.
- The annual wage of 75% of insurance agents is $81,970, around $39.41 hourly.
If you are wondering how much do life insurance agents make? Then again, it is the same for this as well. Earning as an insurance agent means focusing on eligibility, like if you want to start selling on eBay.
Do you have any idea about the ways of making money as an insurance agent? Well, read below if you don’t, such as:
- Through commissions only.
- Just only by salary.
- Salary and commissions are also there.
- Bonuses and salaries are also important to earn money as an insurance agent.
Let’s Discuss The Steps You Should Follow To Become An Insurance Agent
If you have had a dream to be an insurance agent, then make sure you are familiar with the following steps. Below, I will discuss the steps to help you become an insurance agent.
1) Complete Your Education
After completing the high school diploma or any relevant bachelor’s degree, some insurance companies might be interested in hiring; you can start researching your insurance agent positions in your nearby geographical areas where you at least get the idea of your educational level. After that, you can apply to programs that match your educational background.
2) Research On The License Requirements
Remember to research license requirements, which you should apply to the area where you are interested in working. If a company hires you to fill the insurance agent’s role, they might also assist you with obtaining a license.
In this case, you might enroll in a course where you can earn the insurance agent license. After that, you must be certified by any country’s Insurance Regulatory and Development Authority to become an insurance agent.
3) Complete The Training
When this is about pursuing your career in an insurance company, then focus on completing the basic training. This training program lasts up to 15 hours, and you can complete it within three or even four days.
This depends on the ability of your understanding of the concepts which you are taught. On the other hand, you can even complete the training offline or even in online mode. Once you complete the training, you will receive a certificate.
4) Complete The Exam For The License
Once you complete the training, ensure you have passed the exam. In this case, a candidate might have to take any pre-licensing exam, which they can qualify for.
5) Create Your Resume
If you have the required education and experience, make sure you can create your resume. In this case, you must mention the starting point, which means you are certified by an insurance agent. This includes a high level of certification, education, and so on. Apart from that, you must emphasize the relevant skills used in your past positions to demonstrate your achievements.
What Are The Important Factors That Impact How Much Insurance Agents Make?
Aside from the commission structure, agents’ income has three main factors. Below, I will discuss the three critical factors that impact how much insurance agents make.
1) Type Of The Agent
Partner insurers contract insurance agents so that they can distribute their products. They come in two types such as:
- Captive Agents
This type of agent works closely with an insurance provider.
- Independent agents
This type of agent represents so many insurance companies.
If you want to know how much commission do insurance agents make? Then, usually, independent agents will be able to earn higher rates of commissions than their captive counterparts. This means independent agents often shoulder business expenses regarding office supplies, rent, marketing costs, etc.
2) Location
Another important factor for an insurance agent is all about location. When this is about locations, then it means employment rates, public safety, accident rates, and even accessibility to multiple public services are also playing an important role.
3) Type Of Policy
Another important factor for an insurance agent is the type of policy. In this case, it includes home, auto, health, business insurance, etc. Even the commission rates are higher for new health policies and new life. Although the amount drops after being renewed. However, for car and home insurance policies, this rate is similar to the amount of the first year.
In Conclusion
I have discussed how much do insurance agents make above in this article. Recently, insurance sales have been one of the most lucrative careers globally. There are so many opportunities for growth in this domain. Now, read this article to learn how to become an insurance agent. Even in this way, you can find great insurance jobs in your nearby areas.
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