Several Agents Give Advice on the Pros and Cons of Selling Insurance
So, you’re thinking about a career in this field and you’re wondering about the pros and cons of selling insurance? There are many reasons why this is a fulfilling and lucrative business. And there are just as many reasons it may not be for you. Here’s what agents have to say on the subject.
1. Little Start-Up Cost
Being an independent insurance agent is like owning your own business. But the nice thing about this business is that you don’t have to spend much on start-up costs. You need a state insurance license, errors & omissions insurance, a computer, a nice pen, and some personality, and you’re good to go.
2. Set Your Schedule
One of the pros of selling insurance is your ability to set your schedule. That allows you to take care of medical appointments, handle personal errands, and reduce childcare expenses because you are in more control of your work-life balance.
3. It’s Rewarding
Perhaps one of the best pros of selling insurance is that you’re doing something good for your clients by helping them be prepared for the unexpected. And if something bad happens to them, your efforts will make a huge difference in their lives. This can be truly meaningful work.
4. You Can Make Lots of Money
Residuals are one of the easiest ways to establish a steady income stream. When an insurance policy expires (usually after 6 months – 1 year), your customer will have the opportunity to renew their coverage for the same amount of time. Every time a renewal comes through for you, you receive another commission.
1. It’s Hard
You need to convince people that they need what you have, and they usually don’t want to hear it. Unfortunately, insurance agents have gotten a bad rap over the years. To overcome this, you need to have the ability to foster relationships with your customers.
2. Success Can Take Years
One of the biggest cons of selling insurance is that a lot of people fall out of this industry because their expectations of immediate success are too high. Much like any sales career, it usually takes a while to get in a groove and can take an extended period of time to make a good income.
3. Your Paychecks Are Unpredictable
Because this is a commission-based business, your income could vary from month to month. Stable income is only possible when you are consistently selling products. So, it is important to be able to attract new business month after month.
4. Easy Burnout
If you’re not working, then you are not earning money, which often leads people toward burnout. This is especially true in the beginning when you are working tirelessly to get your business off the ground. There are also no paid sick days or paid time off, making it harder to take the breaks needed.
The pros and cons of selling insurance are helpful to think about if you’re looking into a career as an independent insurance agent. It might also be helpful to talk to someone in the industry and get answers to your specific questions. Contact us today to discuss opportunities with our organization.