Saturday, April 6, 2013

Insurance Career Questions (Part 1)

What type of insurance agent should I be?
It totally depends on what you are interested in. If you like dealing with investments, estate planning,
family continuation, or business continuation, that'll be Life insurance. Health insurance interests include Medicare Supplement and Long Term Care needs as well as helping people get the type of insurance they need to meet their medical requirements. Property and Casualty would be for the agent who likes to deal more with tangibles such as covering people's home, business, auto, or boats. It also covers liability issues to protect people against lawsuits that might come their way. Be the best agent you can be!

What are the advantages to selling life and health insurance over property and casualty insurance?
The advantages to selling any type of insurance lies within the indvidual agent. What are you comfortable with and what do you most believe in?

What type of insurance is best to sell when you are just starting out?
Again, that depends on where your interests lie. Often a new agent is well advised to start with a company that has a training program. It's good to have a mentor whom you respect and can learn the ropes from. There are both Property/Casualty and Life/Health companies that have such programs.
Some agencies also have training programs that encourage new agents to learn from more experienced agents. Often the new agent will share commissions with the experienced agent on these joint sales calls.

Does it make a difference (in terms of income and career expectations) what type of insurance I sell?
Yes. As far as income, larger first year commissions often come from Life or Health Insurance sales.
Selling auto or home insurance (Casualty and Property, respectively) yields lower first year commissions, but agents often sell more of these types of policies. Second year and other future commissions are generally higher with the Property and Casualty customers.
Career Expectations- It is generally considered that P & C (property and Casulaty) agencies require more maintenance, in that customers have more changes with buying and selling property and claims must be handled. For this reason agents find they need staff earlier on and on a consistent basis or the agent will get bogged down with the daily business and will be unable to maintain client relationships and build a bigger agency.
Life and Health agents do tend to narrow their focus, as well, as some will stay with the sale of individual policies, some will move into group sales, some will move into estate planniing, and some will gravitate into securities. Many Life agents will develop agencies in which they have specialists to help in the various areas their clients need help; the agent uncovers the need and then works with the agency specialists to bring more focus on the particulars.

If I want to be a life insurance agent, should I sell health insurance too?
You can sell Life insurance by itself, or along with Health insurance. Often agents will have both licenses because opportunities come up and you don't want to leave an opportunity staring you in the face. Even if you end up referring the Health business to another agent, you can still split commissions or get a referral fee if you also have a Health license.

 What insurance company should I work for?
You should work for an insurance company with which you feel comfortable- both in the types of policies sold as well as with the training, coaching, mentoring, and other assistance available  through the company. Also, does it have standards with which you can identify and fit in?

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