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Insurance is a great field to work in. Not only does it help many people get the right care for themselves and their families, but it is also a highly rewarding job in and of itself.
For example – an insurance agent doesn’t have any cap on their earnings, and being good/successful at their jobs, they can earn from their salaries, commissions from sales, and bonuses, leading to financial security and stability.
Along with this, due to there always being hiring for agents and low barriers of entry, this has become a highly sought-after job.
Keep reading to learn all you need to know about becoming a successful agent, whether you have already started your journey or will start one in the future.
Who is an agent in insurance?
An insurance agent represents the insurance providers they are affiliated with in front of prospective customers to sell them insurance policies. An agent advises potential customers about the various plans and helps them choose the right one based on their needs and requirements.
They also explain relevant policy information and details so the customer knows inclusions, exclusions, conditions, and the claims process. This is used to generate new business and foster goodwill with existing customers.
There are typically two kinds of agents in insurance. These are based on their affiliation and whom they represent.
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Exclusive Agent
An exclusive or captive agent works for just a single insurance provider. They are typically full-time or part-time employees for the companies.
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Independent Agent
On the other hand, an independent agent is free to represent and deal with as many insurance providers as they want.
What are the benefits of becoming an agent?
There are several benefits linked to becoming an agent in insurance, which might differ depending on the type of agent and the insurance provider one represents. These are the most common benefits an agent will get when becoming one.
1. Stable Income
Becoming an exclusive agent is usually rewarded by monthly fixed salaries. This offers a stable income for those who wish to settle down.
2. A secondary source of income
For those who already have a primary source of income but want to earn a little extra to support their family/needs.
3. Passive Income
Specific agents also get renewal benefits for every subsequent renewal by the customer. This allows them to generate some amount of passive income.
4. Sales Commissions
An agent is eligible for commissions on every policy they sell. The percentage differs between life and non-life policies and between different insurance providers.
5. Bonuses
Bonuses are also given out for hitting or exceeding some sales targets.
6. Non-cash perks and benefits
There are also some non-cash rewards and recognition awards like international tours, awards, etc.
7. Flexible work timings
An agent is free to work when they wish to. This allows for a lot more flexibility and work-life balance.
8. Work from anywhere
An agent can also work from anywhere, offering incredible flexibility and work-life balance.
9. Zero Investment
Becoming an agent requires zero investment, allowing anyone to get into the field and try it out without spending money.
These are some of the benefits I received by becoming an agent. I am currently a health insurance agent for Niva Bupa, India’s leading health insurance provider. They have more than 1 Crore happy customers and are networked with over 10,000 hospitals nationwide.
Tips to become the best insurance agent
To make the best use of the above-stated benefits, one can follow the below-given tips to become a successful agent.
1. Analytical Skills
Having analytical skills helps agents understand and solve the customer’s pain point.
2. In-depth knowledge
It is imperative to have in-depth knowledge about all of the products one is dealing with. Not only is this helpful in advising the customer about the right plan for their needs, but also any terms and conditions.
3. Communication skills
Communication and networking skills are the most critical aspects of an agent’s day-to-day job. Being good at this allows one to become the best insurance agent.
4. Empathy
Empathy is another essential trait, as becoming an agent requires dealing with hundreds, if not thousands, of different people. Each of whom is facing different pain points or issues, empathising with them and offering them the best plan can help leave a long-lasting impression in their minds resulting in positive word of mouth.
Conclusion
By following these tips and using them in one’s day-to-day life, you can become a successful insurance agent and use those incredible benefits best. With the barrier of entry being so low and requiring no investment, anyone with free time should consider becoming an agent and start earning.
Also Read: The Finance Options You Have When Starting a Business
