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Selling Insurance: Complete Beginner’s Guide

January 3, 2022

Are you interested in selling insurance? If so, this might be the best decision you’ve ever made. According to the Bureau of Labor Statistics, employment of insurance sales agents is projected to grow 7% over the next decade!

Insurance agents help clients understand insurance policies and choose a plan that best fits their needs. There is more opportunity than ever for selling Medicare insurance, health insurance, and life insurance.

Continue reading for our step-by-step guide on selling insurance.

You can jump around using the links below:

How much can you make selling insurance?

The insurance industry as a whole is categorized under the financial services sector where there is a famous saying: “there’s a lot of money in the money business!” 

Rat Race

Many Americans find themselves trapped in the rat race, where it feels like they pay everyone else first. One example we commonly refer to is a dishwasher who earns $9 per hour. He earns the same amount of money whether he washes 95 dishes in an hour or 100.

In other words, effort ≠ outcome.

Question: So how much can you make selling insurance? 

Answer: You can make an unlimited amount of money selling insurance! 

This is because you get to build a book of business that scales as you add new clients. For example, let’s say you were to sell 25-30 Medicare policies. You could expect to earn around $10,000 in annual commission, and if you retain those clients, then you will continue to receive renewal income every month! 

Ongoing Residual Income

Selling insurance allows you to generate passive income, and it’s also shown to be stable in times of economic uncertainty. Take for example the COVID-19 pandemic. Thousands of businesses had to close down and were unable to recover their losses. Meanwhile, everyone still needed life and health insurance.

For more information on how much money you can make selling insurance, check out this in-depth article.

Captive vs. Independent Agent

A captive agent works as an employee at an insurance company. It’s a good option for some people, but it also has drawbacks. 

As a captive agent, you might not be able to expand your portfolio or sell products outside of what the company offers, and you will not own your book of business. That means that if you leave the company, you have to leave your income behind.

An independent agent has more control over their destiny. You can offer as many products and carriers as you want, and you can build a book of business that’s a true asset for you and your family.

At The Brokerage, our independent agents are 100% vested from day one, which means that they have full ownership of their book of business.

Decide which products you want to sell 

Over the next decade, an average of 10,000 Baby Boomers will turn 65 and qualify for Medicare each day. On top of this, four out of five consumers under age 65 are now able to find ACA health insurance for under $10 a month. And with consumer debt at an all-time high, it’s important for families to protect their loved ones with life insurance

Every one of these potential clients needs help understanding their options, and you can make a great living by helping people with this important matter.

At The Brokerage, we offer products from all of the top insurance carriers:  

If you set up an account on The Broker Link (new link is pending), you can research which carriers are most popular in your region and decide what you want to sell.

Get your insurance license

Here are the basic insurance licensing requirements:

  • Be at least 18 years old 
  • Complete pre-licensing education
  • Pass the state insurance licensing exam
  • Pass a background check

Insurance Licensing Requirements

If you meet the basic requirements and are willing to commit to taking continuing education courses each year, you can continue on to enroll in an exam preparation course and then pass your state licensing exam. 

Check out our complete guide for getting your insurance license here.

Find an independent marketing organization

Commonly referred to as FMO, IMO, or GA, an independent marketing organization serves as the link between an insurance carrier and an independent insurance agent. 

You’ll want to make sure that you choose an independent marketing organization that offers the carriers and products you’ve chosen. You’ll also want to make sure they offer fully-vested contracts, training, support, technology, and have a solid reputation. 

Marketing Organization

Selling insurance can be an overwhelming task when you’re working alone, and that’s why it’s so important to choose the right independent marketing organization. Find a group that empowers you to sell more, earn more, and stay independent. 

For more on how to find the right independent marketing organization, check out this guide.

Prepare for Success

Once you are licensed and you’ve chosen an independent marketing organization, it’s time to prepare for success. 

The first thing to do is leverage your network. Let others know that you can now help them and their family with insurance, and make it easy to share your information. Secondly, plug into your independent marketing organization’s training & marketing programs to find out how you can kick start your book of business.

If you have a day job, we recommend that you start by selling insurance on the side to remove unnecessary pressure and focus on building a sustainable business. Beyond that, the sky’s the limit. 

At The Brokerage, you can get started with selling insurance by setting up a free account in The Broker Link. There, you can get contracted with insurance carriers, learn about our exclusive marketing programs, access our on-demand training, and so much more!


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