Is insurance sales a tough job? (2024)

FAQs

Is insurance sales a tough job? ›

You can make a good living selling life insurance, especially if you continue to earn commissions on policies you have already sold. However, it is not an easy career, as it requires constantly working to find leads, build relationships, and make sales.

Selling insurance can be stressful. It requires long work hours. You can also experience constant pressure to meet different quotas and targets. The highly competitive nature of the profession can create a work environment that often leads to stress and burnout.

That is a 90% failure rate for new agents.

Most independent marketing organizations will train insurance agents on all the products they want them to sell. Then the independent marketing organization will train the insurance agent to ask a few questions and learn a sales presentation that just sells a product.

Selling insurance can be a lucrative proposition, with relatively high-paying commissions and a high degree of autonomy with flexible work hours. However, it is not an easy job. You can expect a high rate of customer rejection, stress, and attrition rate.

Insurance agents succeed when they prioritize their customers' needs over their own profits. The most commonly cited reason insurance agents fail is that they fail to listen to their customers and take the time to find the best product to suit their needs.

The state has been particularly battered by the dual forces of nature and economics — wildfires fueled by drought and, more recently, flooding have led to significant losses for insurers, prompting many to exit the market or drastically adjust their offerings. For Harper, the job's emotional toll is palpable.

No Trust in the Insurance Agent or Insurance Company

Some are just paranoid, but others have had past experiences that justify their lack of trust. Whether it has been lack of service from their agent or not being treated fairly on a claim, bad experiences can put a very negative light on the insurance industry.

Insurance is widely considered an “evergreen career,” one which typically offers excellent job security.

Unpredictable Income

While the insurance industry is stable and the income is lucrative, it can sometimes be hard to plan ahead and know where your next paycheck will come from, since your income may be solely based on sales made. To succeed in this field, you must be a go-getter.

Most professionals who sell insurance are paid largely on a commission basis. In fact, most agents aren't even employees of the carrier. More often than not, they're independent contractors who are compensated based on how much they sell, with higher commissions for certain types of products.

Do you have to be good at math to be an insurance agent? ›

Math. Because insurance relies on many financial principles, it's essential for insurance agents to possess competency with numbers. The ability to make error-free calculations and analyze numerical data about insurance trends can help agents perform their work more effectively.

Heightened Competition. The insurance market has always been competitive, but in a hard market, it's like a pressure cooker. They aren't just competing with each other; they're also up against online platforms and automated services.

As an insurance agent, you may think that being an introvert is a disadvantage when it comes to selling insurance. However, being introverted can be an advantage in this industry, as introverts often excel at building deep relationships and listening to the needs of clients.

While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.

More than 90% of new agents quit the business within the first year. The rate increases to greater than 95% when extended to five years.

Insurance Agents get paid a commission (percentage of your premium) from your insurance carrier. You do not pay insurance agents directly. Instead, every time you make a premium payment, the insurance carrier pays the set commission rate to the agent or agency.

Most businesses don't make any profit in their first year of operating. It could take anywhere from 18 to 24 months for your insurance sales to actually provide profit. Don't feel discouraged. Every small business owner has to clear this hurdle.