All You Need to Know About Insurance Agent Jobs

Insurance Sales Agent  

Insurance sales agents generate leads and sell insurance to their clients while maintaining records and handling policy renewals. A large part of being a successful insurance agent is having the ability to develop strong client relationships.

You can choose to sell personal lines such as health, life, homeowners, auto, and/or commercial lines like property and casualty insurance. Additionally, many agents find it profitable to sell niche insurance products like cyber insurance.

There are two types of insurance agents—independent insurance agents and captive agents.

Independent agents work with multiple carriers, while captive agents only work with one. It is essential to understand the differences between them if you want to make an informed decision as to which you’d rather be.

Requirements and relevant skills

A high school diploma but a college degree is preferred
A state-issued insurance agent license
Perseverance and a positive attitude
Excellent communication skills
Knowledge of Business Management

Insurance Sales Agent Salary

According to the U.S. Bureau of Labor Statistics (BLS), the 2020 median annual salary of an insurance sales agent was $52,180. The lowest 10% of agents earned around $29,000, while the highest 10% earned more than $127,840 a year.

Some captive agents may be salaried employees, but the majority of insurance agents earn money through commissions. Commission rates vary depending on your contract with the carrier and the type of insurance you’re selling.

For example, commissions for the first year’s home and car insurance premiums range from 8% to 15%, while life insurance commission rates range from 40% to more than 100% on the first year’s premium. Commission rates for renewals are generally a lot less, with the car and home policies typically paying 2%-5% per renewal and life insurance paying 1%-2%.