How to Sell Supplemental Insurance
Supplemental insurance is insurance that is sold in addition to a major insurance plan. This money can be used for any purpose and is typically used to pay for bills while you are unable to work due to an illness or injury. Supplemental insurance can cover smaller, more specific risks that a larger policy might not cover or it can provide extra benefits in addition to the base policy. Common supplemental insurance policies pay you cash directly instead of paying claims to your health care provider.
Get your pre-licensing study materials. Supplemental insurance normally requires a life and health insurance license. Get these materials from the insurance company you will be working with. For example, if you will be working for Aflac, you will need to obtain the study materials from the company.
Sit for your exam. You must pass a state exam for life and health insurance. This will enable you to sell the supplemental policies. You may need to pay an exam fee to take your exam, depending on your state. You will also need to take the exam in a state-approved testing facility.
Get your certificate of completion. Once you pass your exam, you will be given a certificate of completion. This certificate will allow you to apply for your license.
Get fingerprinted. Your state may require electronic submission of your fingerprints or they may require that you get your fingerprints taken by a police station. For electronic submission, you will need to use a state-approved biometric facility that will submit your fingerprints to the state.
Apply for your license. Download your state’s insurance license application from your state’s department of insurance website. Fill out the application and return it with your fingerprints or a receipt of fingerprint submission if you submitted them electronically. Pay the administrative fee with your application submission and wait for your new license to arrive in the mail.
Apply to insurance carriers or to an insurance agency. If you are applying to work for an agency, then there is no need to apply directly with an insurance carrier since the agency acts as the managing general agent for the insurance company and you work for the agency as an insurance agent.
Set up your office. Rent an office or set up a home office if you become an independent agent. Purchase office supplies such as paper, pens, a phone, fax machine, desk and chairs. Obtain applications for insurance from your insurance company.
Obtain errors and omissions coverage. Errors and omissions insurance is liability insurance that protects you from being sued by clients and is generally required when selling insurance in most states. You must have E&O insurance before you can sell any of the insurance company’s or agency’s product offerings.
Acquire clients. Contact business associates, friends and even family members to offer them a quote for insurance. Direct marketing and telemarketing are also used to get insurance leads. Purchase business cards, fliers and other related marketing material to distribute in your community.
How To Sell Insurance For Beginners
So you want to be an Insurance Agent? In today’s society, we are taught to go high school; Then go to college and get your bachelor’s degree; Then go back to college and get your master’s degree. In the mean time, get a job in the field of your degree. And Finally get your PhD and continue to work your way up in a reputable company. We are taught that this is the path to success and financial freedom. But this is not necessarily true.
There are a plethora of careers where you can get some type of certification, either from a technical school or just through a simple test, and still be very successful and have financial freedom – Selling insurance is one of these careers.
You do not have to have a degree in order to sell insurance, but usually, any type of college course you take that is related to insurance may prove to be beneficial during your preparation process. Typically there are business, finance and accounting courses that you can take to help get you ready for your exam. The only benefit to having a degree is if you plan on working in the corporate level of a large, reputable brokerage company. In this case, candidates with a degree may be considered over candidates that have no education at all. Of coarse the first step and the most important thing that you have to initially worry about is preparing for the insurance exam and to do that you must first look up the requirements in your state, because the process varies slightly from state to state.
Individual insurance agents typically get paid based off commission. Usually the companies that they are representing will give them leads in their area. Their job is to present details and sell policies for life, health, disability, long term care, property and casualty Insurance to all interested parties.
Property and Casualty Insurance brokers deal with policies that provide protection for people and business from any type of financial loss resulting from automobile accidents, theft, storms, fires or any thing else that can cause damage to your property. If you are selling to business owners, your policy would can also include product liability claims, medical or malpractice claims, and workers’ compensation costs.
Life, health, and automobile insurance are pretty self explanatory. Life policies pay pre-determined person, also know as the beneficiary, a pre-determined amount of money when the policyholder dies. There are several ways for a person to set up their life insurance. The beneficiary, upon the death of the insuree, can receive retirement money, money for the child or children’s education, or other specified benefits. Health insurance agents sell policies the pay for costs of medical fees or loss of income due to an injury or illness. Dental care can be added and also long and short-term disability policies may be sold to individuals.
In today’s world, many agents are specializing in more than one type of insurance and it would be wise for you to do the same thing.
In addition to the normal policies being sold, there are many Insurance agents who are specializing, offering and selling financial planning services. Financial planning services usually include estate planning, retirement planning, an assistance in setting up pension plans for business owners. On top of that, if you really want to make the most out of selling insurance, you can also become licensed to sell variable annuities, mutual funds and any other securities.
How to Sell General Insurance
General insurance is also known as property and casualty insurance. This type of insurance protects insured individuals against the loss of personal property and even provides financial protection against injury. This could be an automobile, a home, or even personal or business liability insurance. Property and casualty insurance offers a way for individuals to transfer the risk of damage away from their personal savings and into an insurance company’s general account. The insurance company can then pool similar risks and manage them effectively. If you’d like to get into the business of selling general insurance, you’ll need to know what is required of you.
Get your prerequisite education. You will need a minimum amount of education and training before you can get your property and casualty license. For example, in New York state you must complete 90 credit hours of study before you can take the exam to become licensed. This educational requirement may be waived if you hold the Chartered Property Casualty Underwriting designation.
Sit for the state exam. You must take a state exam and pass in order to apply for your property and casualty license. These exams are always proctored and there is typically a fee that is payable in advance to sit for the exam.
Download the application form from your state’s insurance website, or contact the insurance commissioner’s office to request an application. Fill out the application and turn it in with the processing fee to apply for your state-issued property and casualty license.
Take continuing education classes. You must complete the state minimum continuing education requirement before you renew your license. Many states have a two-year renewal schedule. You must complete your continuing education requirements prior to your renewal date in order to continue selling general insurance.
- «Practicing Financial Planning for Professionals, practitioner’s 10th edition»; Sid Mittra, Anandi P. Sahu, Robert A Crane; 2007
- «Ernst & Young’s Personal Financial Planning Guide, 5th edition»; Martin Nissenbaum, Barbara J. Raasch, Charles L. Ratner; 2004
About the Author
I am a Registered Financial Consultant with 6 years experience in the financial services industry. I am trained in the financial planning process, with an emphasis in life insurance and annuity contracts. I have written for Demand Studios since 2009.
How to Sell Workers Comp Insurance
How to Sell Workers Comp Insurance. Making sure employees are covered in case of an injury not only makes good sense for them, but also makes good business sense. Workers comp insurance shows your employees that you care about the welfare of their families. Keeping this in mind while writing a workers comp insurance policy for businesses helps you understand your client and their needs to better serve them. Here’s how to sell workers comp insurance.
Check the licensing requirements of your state. In most cases, licensing for different types of insurance, such as workers comp insurance, means different testing and application requirements. Make sure you are in compliance with all of your state’s licensing regulations.
Know what your state’s requirements are for carrying worker’s compensation insurance. Some states require that companies carry a workers comp policy, and some don’t. Check the requirements in the state where you will be writing the policy.
Develop a marketing plan. Identify your potential clients and develop a marketing plan geared toward reaching that type of client. You may want to hire a marketing firm to help you with this.
Assess the potential client’s risk. There are risk assessment tools to calculate this risk. If your client is having trouble getting a workers comp policy, try a company with a small business program available.
Maintain a client-centered website. Places like siteforless.com have website packages with a professional look and feel. With a website you can cater to the needs of your web savvy clients while maintaining personal service.
About the Author
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How Do I Get a License to Sell Insurance?
Insurance agents write insurance policies for consumers, most commonly life insurance and automobile insurance policies. While the earnings of insurance agents will vary greatly depending on the products they sell, one can generally expect to earn a decent living selling insurance. Each state has a Department of Insurance that carefully regulates the insurance industry, including the licensing of new agents. Learn more about getting your license to sell insurance.
Determine what kind of insurance you want to sell. Each state has different licensing requirements for each type of insurance. The most common insurance licenses are: property and casualty (includes auto and homeowners) and life, health and accident. Many agents choose to become licensed in every major field.
Check with your state’s Department of Insurance for specific agent licensing guidelines. Although general requirements exist, each state has specific guidelines. Most states require you to complete a state-approved pre-licensing class taught by a licensed insurance instructor. The classroom hours range from 16 to 32 hours per license.
Register for your state-approved pre-licensing course. Once you have completed the course, take at least a few weeks to prepare for the state insurance exam; you will need to learn and memorize a number of important laws and regulations. Testing schedules will vary from state-to-state, but are generally offered several times per year. Many states use a testing-center such as Thomsen-Prometric, but contact your Department of Insurance to get exact instructions.
Submit your application to your Department of Insurance once you have passed the test. Most state departments have the needed forms available for download on their website, along with specific instructions.
Wait for a response from the department. Once you have received a response, you will need to find a sponsor (employer) to receive your license. Submit your employer’s information to the Department of Insurance to receive your license. If you choose to be an independent agent (self-employed) you will also need to obtain Errors and Omissions insurance.
Don’t be discouraged if you do not pass the exam the first time. Many testers report having difficulty with the insurance exam because of the complicated regulations and laws associated with insurance.
How to Get My License to Sell Car Insurance
Selling car insurance requires a property and casualty insurance license. Licenses are state specific with licensing requirements that are maintained by each state’s department of insurance. You need to meet the course-hour requirements, pass an exam and become «appointed» with an insurance company to sell car insurance. Most states have an age requirement of 18 years or older.
State Department of Insurance
Because insurance is governed by state entities, requirements vary from state to state. Check with your state department of insurance or insurance commissioner to determine the exact number of pre-licensing education hours needed, the exam basics including duration and scoring and the registration fees for your state. You can pass the exam without being associated with a specific insurance company, although some insurance agencies are willing to pay for licensing requirements. In addition to taking the pre-licensing class and exam, you need to complete an application with the state that includes a background check and fingerprinting and pay any applicable fees for your state.
Pre-licensing course work is done either in a classroom setting or online. You must find a preapproved vendor and attend all hours to be eligible for licensing. For example, in California, you need 40 hours of pre-licensing class time and another 12 hours of ethics. If you attend a class in person, you sign in and sign out to demonstrate you were there for the entire duration. If you take an online course, the program monitors your progress. Other states have other requirements. Hawaii requires only 24 hours of coursework plus 12 hours of ethics. The class registrar reports your hours to the department of insurance upon your successful completion of the classes.
Passing the Exam
Every state issues its own exam, and you must meet the minimum requirements. These proctored exams are given at test centers. In California, you pass with a score of 60 percent, while in Hawaii, you must answer at least 75 percent of the answers correctly on the two-hour multiple-choice exam. Prepare for the exam by taking practice exams issued by your pre-licensing provider. Schedule the exam be prepared for a proctored setting. Wear comfortable clothing but avoid hoodies or anything baggy with a lot of pockets. All personal items are left in a locker outside the test room.
Once you have completed the application, background check and pre-licensing process and have passed the exam, you can contact insurance agencies to be «appointed» – a term that means you are allowed to sell their products. Know the type of agent you want to be: A captive agent sells only one company’s product, while a broker sells insurance from many companies. For example, insurance agents who work for State Farm are captive agents and can sell only State Farm products.
If you were previously licensed in another state, inquire about reciprocity agreements that allow you to produce across state lines. For example, Hawaii allows California insurance agents to obtain a nonresident license without additional exams or education requirements.
About the Author
With more than 15 years of small business ownership including owning a State Farm agency in Southern California, Kimberlee understands the needs of business owners first hand. When not writing, Kimberlee enjoys chasing waterfalls with her son in Hawaii.