How to Become an Insurance Broker: A Beginner’s Guide

How to Become an Insurance Broker

There were about 422,600 insurance sales agents in the U.S. in 2021. An insurance salesperson has some of the highest earning potential in the workforce. Aside from the earning potential, there’s also prestige in being an insurance broker.

Insurance brokers help customers manage finances to get the best coverage at the lowest price. If you’re fascinated by this business, you might wonder if an insurance broker is a promising career. 

Want to know how to become an insurance broker? Read on for a brief in-depth guide.

Know the Type of Insurance You Wish To Sell

The most common types of insurance are life, health, auto, and home. Still, many others exist, such as liability, workers’ compensation, and property insurance. It is essential for insurance brokers to understand the coverage each type of insurance provides. That way, they can tell their clients on the best coverage for their needs.

Apply for a License to Become an Insurance Broker

Research the requirements for becoming an insurance broker in your state. Each state has different requirements, so it’s essential to ensure you’re meeting them. Once you’ve done your research, you’ll need to take and pass a state-approved pre-licensing course.

After completing your pre-licensing course, you’ll then need to take and pass the state insurance broker exam. Once you’ve passed the exam, you’ll have an official license and can begin working as an insurance broker!

Also, there are other certifications can help boost your career such as an AHIP Certification. Being AHIP certified will make you eligible for healthcare sales like Medicare Advantage and Prescription Drug Plans.

Find And Start Working at Insurance Companies

Many insurance brokers start their careers working for an insurance company before moving on to brokerages or independent practices. Others may enter the profession after completing a degree or diploma in insurance brokering. It is also possible to become an insurance broker through on-the-job training.

Insurance brokers must be able to communicate with both insurance companies and their clients. They must have good negotiation skills and be able to find the best possible insurance deals for their clients.

How Much Can A Starting Insurance Broker Make?

Insurance companies will pay you a commission for your services when you sell insurance. The commission you earn will depend on the type of policy, the premium, and the company you work for.

An insurance agent’s average salary ranges between $30,000 and $50,000 annually. However, top earners can make over $100,000 per year. 

Provide Financial Stability as an Insurance Broker

It can be a rewarding experience if you want to become an insurance broker as you can help many people. If you are interested in becoming an insurance broker, research the requirements in your area and start working towards meeting them. Contact local insurance companies and brokerages to inquire about job openings and consider completing a broker education program.

Learn about the necessary steps to take, the education and licensure requirements, and what to expect regarding job outlook and earnings potential. Take the first step towards your new career today.

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About the Author: Amanda Byers

Amanda Byers is a graduate of Columbia, where she played volleyball and annoyed a lot of professors. Now as Zubuz’s entertainment and Lifestyle Editor, she enjoys writing about delicious BBQ, outrageous style trends and all things Buzz worthy.