Insurance agent appointments are key for both new and experienced agents in order to sell policies, but the process can sometimes be challenging for newcomers due to carrier requirements such as book rolls, experience and success measures, geographic locations and additional qualifications.
There are, however, a few items which can aid the process. These include:
1. Research the Companies
Trying to sell insurance professionally requires becoming contracted and appointed with multiple carriers, in order to write policies for clients on behalf of each carrier. Appointment requirements usually include sales quotas and training. NerdWallet advises checking ratings from AM Best or Fitch Ratings agencies in order to select life insurers you might like working with.
Consider whether or not the company provides products that will satisfy the needs of your target clients. For instance, certain life insurance providers might specialize in selling term life, while others have more experience selling permanent life policies. Finding one that meets those criteria could increase appointment requests significantly.
One of the best ways to research life insurance companies is to speak to other agents in your industry, who will give an honest and comprehensive review of each insurance carrier as well as its pros and cons. You could also ask friends or family who they use as this source can also be beneficial.
Researching companies is crucial because they want to know that you are well-equipped to start selling for them. You should demonstrate your ability to find and sell policies to new and existing clients while assuring them that you will treat their policyholders well and keep them happy.
Once you’ve proven your selling ability, the next step should be obtaining the appropriate licenses. Most states allow life and health insurance salespeople to operate legally while others require additional licenses such as property & casualty policies sales licenses.
Starting out may make life easier if you work with a managing general agent (MGA). An MGA acts as an intermediary between insurance agents and insurers and can help get appointments with various life insurance companies; additionally, MGAs may assist with more difficult-to-appoint specialty policies.
2. Fill Out the Appointment Application
Before selling life insurance, it is essential that you receive approval from an insurer to sell their products legally and ethically. Once appointed with one such insurer, only then can you legally offer coverage to clients.
Step one in scheduling an appointment is filling out an initial application, which usually entails answering a series of questions about your background and experience. Answer honestly and completely for best results; additionally, providing references who can vouch for you is also wise.
Once your application is completed, the next step will be submitting it. Most insurance companies offer online submission forms; this makes the process simple for sending in. In some instances, they may require further documentation or information – this shows your commitment and may help expedite their appointment process.
Once your application has been submitted, the insurance company must review it and approve it – this could take several weeks or even months! Once they do approve your application, an email will notify you that life insurance sales can begin.
If you’re having difficulty scheduling meetings with insurance carriers, working with a Managing General Agent (MGA) might help. MGAs serve as wholesale brokers who connect you to multiple carriers – making it easier for you to acquire clients. You can find these specialists either by searching online or attending insurance classes near your city.
Attaining multiple insurance policies simultaneously may seem appealing, but this could be risky given that most providers use shared databases to track records and applications. Applying with too many may appear like overinsuring yourself and may result in some or all applications being denied. Working with a financial planner or agent is highly recommended to ensure applications are processed swiftly while they can also recommend carriers likely to accept you quickly and check financial strength ratings with third-party organizations like A.M. Best, Fitch Ratings or Moody’s Investor Service can give insight into financial strength ratings that can provide insight into which companies you should apply with.
3. Meet with Representatives
Once you’ve filled out and submitted an initial application, and answered all required questions, it is time to meet with representatives. This meeting should allow you to learn more about the company and decide whether it is an ideal match for your agency. Be prepared to answer any additional inquiries that arise during this meeting and articulate why you wish to work with that particular insurance carrier; no exaggerations of experience should take place here!
Insurance carriers want to know that you are a licensed agent who is committed and capable of marketing their products effectively, while at the same time treating policyholders professionally. They use your past production numbers and client retention rates as indicators.
As part of meeting with representatives, make sure you bring along a list of coverages you would like to offer clients. This allows you to provide them with options and tailor policies according to their specific needs, while helping build up your book of business faster.
As with an initial application, the insurance carrier will review your list of coverages to determine their appropriateness for both you and the client’s circumstances. Once they’ve reviewed them, they’ll either approve or decline your appointment, with approval resulting in notification and an official letter of appointment being sent out by them to both of you.
Beginning your career as an independent agent requires becoming appointed with multiple life insurance companies, but this process can be time consuming and require much hard work. If you prefer taking an alternative path, becoming a captive agent might be worth exploring first, whereby you sell only products of one insurance provider at first. Doing this can provide invaluable experience and knowledge of the industry before transitioning into independent agent mode.
Starting out as an independent agent can be daunting, so an MGA may provide an ideal way to quickly expand their book of business.
4. Take the Necessary Courses and Exams
Life insurance agents must pass a state-specific licensing exam before beginning selling policies. This exam includes factual questions on general and state-specific topics as well as questions that require test takers to apply what they have learned. Usually administered at testing centers by professional proctors, multiple-choice computer-based exams generally take 1.5-2 hours to complete and once complete test-takers will receive immediate notification of results; should someone not pass this initial attempt within 24 hours they can reschedule another attempt within this period.
Before sitting for their state life insurance license exam, students should enroll in a pre-licensing course to prepare them for what to expect on test day. The best courses provide comprehensive study materials such as study manuals, flashcards and videos – as well as full-length practice tests – plus a Pass Report feature which tracks student progress over time. National Online Insurance School excels at this aspect; however it is essential that each person finds one that best meets their learning style.
As the life insurance exam covers an immense amount of material, it is helpful to organize it in manageable chunks. Most states have a content outline on their insurance department website that can assist with structuring your study time effectively; some exam prep courses also offer unit outlines and guides that can speed up learning quickly before the exam.
After passing the life insurance licensing exam, the next step should be submitting an application for a life insurance agent license. Typically this process is straightforward but some states require background checks or fingerprinting in addition. Once all requirements have been fulfilled, an applicant will be eligible to sell insurance products and services.
Before beginning work as life insurance agents, applicants should complete all required training and certifications from their employer. Training requirements will differ depending on your company, but common areas of instruction include basic product knowledge, underwriting guidelines and customer service techniques. Furthermore, applicants should familiarize themselves with any changes to regulations in their state as they become available.
