If you’re part of the 64% of Americans who believe you need life insurance and yet don’t have any, you may be wondering what life insurance advisors do. How do they help people get the insurance that makes sense for them? How do they help people navigate this complicated financial product? And how much do they cost? If you’ve ever had these questions, or if you just want to know what all this life insurance talk means, keep reading to find out more!
Life insurance is a complicated subject. There are several different types of policies, each with their own benefits, but it can be hard to decipher between them. How do you know which one is right for you? Where should you get life insurance? The solution: Seek out an advisor! Life insurance advisors help inform potential buyers on what they’re signing up for and make sure they don’t fall into any money traps during their search. And if someone needs coverage, but doesn’t have enough time to dedicate to it, advisors can handle that too! Here are just some of things an advisor will do. Life insurance advisors are people in different jobs. Some work for life insurance companies, but others work independently as consultants. Regardless of their titles, they all help with life insurance planning! If you’re looking to get life coverage, here are some questions to ask yourself: do you have dependents who will need support if something happens to you? Are you trying to protect your family from financial problems in case of your death (like paying off your mortgage or helping them pay tuition)? Life insurance isn’t just about yourself—it’s about helping others. So before you buy an advisor can help make sure that you’re getting a policy that’s right for everyone involved!
Role in the Industry
Life insurance advisors help clients understand life insurance policies and plans, usually by providing personal guidance. When people buy life insurance, they’re protecting their loved ones from financial hardship if something should happen to them. Life insurance advisors usually work with clients to determine how much coverage is appropriate based on individual circumstances like net worth, age, overall health, family situation and more. The advisor then helps decide which kind of policy works best for that person’s specific needs. Policy types can include whole life policies (also known as permanent or cash-value policies), term-life insurance (as in term-life or traditional policies) or even universal life. Life insurance advisors also help clients with their estate plans. Life insurance is often part of an overall estate plan, but advisors can help you make sense of what life insurance is and how to use it properly in your plan. An estate plan is designed to protect your family after you die by deciding who will receive what when you’re gone. This process involves drafting documents like wills, trusts, powers of attorney, advance directives (also known as living wills) and more. Life insurance can be included in some of these documents as well.
Life insurance advisors also help clients choose beneficiaries for their policies—usually spouses or other dependents.
According to Payscale, life insurance advisors earned an average salary of $51,938 per year. But there is a broad range within that salary number. For example, while some advisors working at major financial firms earn over $100,000 per year, on average these professionals are typically earning between $50,000 and $60,000 per year. That said, if you have strong sales skills and are particularly talented at winning new clients (or keeping existing ones), it’s not uncommon for your annual income to top six figures.
Where to Look for Work as an Independent Agent
Now that you know more about what it takes to be successful at life insurance sales, you need to get your name out there. When you’re ready, there are two ways to go about looking for work as an independent agent: hiring recruiters or working directly with an insurance company. In some cases, an agency might want to hire you without any experience. Other times, however, they might not want to take on inexperienced agents. If that’s how things shake out for you, consider working with an experienced recruiter who can help set up interviews with potential employers on your behalf.
The first step to becoming a life insurance advisor is getting your life insurance license. This typically involves taking and passing several exams, some of which require study materials you will have to purchase. You’ll also want to complete training programs sponsored by various insurance companies that can help you get started in your career as well. Some, but not all, states also require an internship for licensure. Once you’re licensed, you can begin working as an independent contractor or with an established agency (though starting on your own is much easier). Licensed life insurance agents don’t have to work on their own, either. It’s possible to be part of an insurance agency as you gain experience in your field. In most cases, getting hired by an agency is easier than starting from scratch, but you’ll probably earn less money. On average, full-time independent contractors earn just over $50,000 annually for life insurance work (including commissions), while employed agents make about $31,500 per year on average. Agents who lead their own agencies are more likely to earn more than both groups of professionals. Whatever path you choose—going it alone or working for someone else—the best place to begin is with training programs sponsored by individual companies or industry associations.