Are you thinking of becoming an independent insurance agent?
According to statistics, there are currently only 36,000 independent insurance agents and brokerages in the US. Although this is a healthy number, there is definitely room for more.
Millions of Americans need multiple types of insurance products, and independent insurance agents are some of the best people to help them get the coverage they need.
Independent insurance agents can often serve clients better and more objectively. What's more, they typically earn more and have more freedom.
These are just some of the many benefits of becoming an independent insurance agent.
Wondering whether or not selling insurance independently is a good career choice? Keep reading to find out the top 10 benefits of becoming an independent insurance agent.
The Insurance Market Is Expanding
One of the key benefits of becoming an independent insurance agent is that you have a relatively assured market and customer base. Insurance is one of those products that almost everybody needs.
This guarantees long-term stability in the market.
What's more, even despite ongoing COVID-19 impacts, insurers are gearing up for a period of growth next year. This just shows how resilient the insurance market is, even during the effects of a global pandemic.
You Can Be Your Own Boss
Are you yearning to be your own boss? Are you tired of people looking over your shoulder and micromanaging you?
If so, then a career as an independent insurance agent might be just up your alley.
As an independent insurance agent, you get to be your own boss and dictate your own schedule. You can make your own decisions, and decide where you want to focus your energies.
You can control how much you want to work, and when you want to work. The only person you have to answer to is yourself and your client's obligations. There's no one to push you around, control your every action, or pass blame.
According to reports, 3 out of 5 workers will stop at nothing to become their own boss.
If you crave a sense of freedom and personal autonomy, learning how to become an independent insurance agent could be the answer.
You Can Tailor Your Schedule
Another of the attractive perks of being an independent insurance agent is that you can set your own schedule.
Not only can this give you a sense of personal freedom and flexibility, but it's also great if you have existing commitments.
For instance, maybe you have children you need to take care of or other family responsibilities. Working a regular 9-5 can be very tough if you also need to fit in things like school runs or family doctor's appointments.
As an independent insurance agent, you can structure your schedule in such as way so that you can handle these responsibilities without guilt or stress.
Pro Tip: Because independent insurance is so flexible, you can also ease into it while still holding a regular or part-time job.
There Are Low Barriers to Entry
Starting a career as an independent insurance agent also comes with low barriers to entry. You don't need a degree or college education to qualify as an agent.
Some states require you to carry out training in order to sit for your licensing exam, but there are no prerequisites. As long as you hold a high school diploma, you can take any required training and take your exam in a matter of weeks.
After this, there may be some carrier or product-specific training you will need to take.
You can also take courses to learn specialized insurance sales and prospecting techniques. However, this is optional and you can take this type of training at your own time and pace.
There’s High Earning Potential
Independent insurance sales is one of the few careers that not only come with low barriers to entry—but a high earning potential as well.
While most high-paying careers require years of studying, insurance sales are not one of these. If you know your products, serve your clients well, and learn the art of sales, you can build a strong stream of income.
What's more, independent insurance agents typically earn more than captive agents (those who work for carriers).
Salary estimates show that regular insurance agents earn an average yearly income of $56,973. In contrast, independent agents can earn a lot more.
One of the reasons for this is that independent agents generate their own leads. Besides this, independent agents are often more self-motivated.
According to estimates, independent agents earn an average yearly amount of $91,323, which is over $34,000 more per year.
You Can Build Passive Income With Certain Insurance Products
Not only can you net an attractive income working as an independent insurance agent, but you can also build a solid stream of passive income with certain insurance products.
Not all insurance types generate passive income for agents. Some simply earn you an initial commission. However, things like life insurance and final expense insurance can generate commissions for years to come.
Pro Tip: The more you sell these insurance types, the more your passive income stream will grow.
There’s Room to Scale
If you find there's more business than you can handle in your area, there's also nothing stopping you from starting up an independent insurance brokerage and bringing more agents under your wing.
By doing this, you can leverage your branding and reputation to make more sales, and give new agents a foot in the door.
Once again, there are low barriers to entry to doing this, as most insurance agents work solely off commission, or a small retainer.
You Get To Help People
A lot of people view insurance sales as a pushy business. However, there's another side to it that you can tap into if you care about your clients.
Buying insurance can be a daunting process for a lot of people. There is a myriad of products out there, and without a good agent, it can be very challenging for people to find the ones that are a perfect fit.
If you have a good knowledge of the products you sell and put your clients' needs first, you can be a pivotal point in their insurance buying journey.
Not only can you take the stress out of the buying process, but you can also ensure that your clients get the coverage and financial protection they need.
Having the right insurance coverage is an important part of financial security. Providing you take your client's interests to heart, you can be the one to make sure their coverage protects them in the right ways at the right cost.
You Can Serve Your Clients Better as an Independent Insurance Agent
Are you wondering whether you should work for a carrier or brokerage or branch out on your own selling insurance?
If so, here's another perk of being an independent insurance agent that you should know about.
Independent agents have a unique opportunity to serve clients because they are not bound by a carrier's requirements or products.
As an independent agent, you can contract with a variety of carriers and sell a range of products. Because of this, you are better able to meet your client's needs to a tee than a captive agent.
This is also good for business. Most clients can sense when you're simply selling them something as opposed to truly listening to their needs and helping them fulfill these.
If you're able to work solely for your client's interests, instead of those of a carrier or brokerage—you're likely to reach more success in the long run.
Pro Tip: Once clients realize that you are truly out to help them, they'll come back to you if they need further coverage. They're also more likely to tell their friends and family about you and become a source of referral business.
Selling Insurance Can Be a Highly Fulfilling Career
If you can serve your clients well, insurance sales can be a very fulfilling career. Not only will you help members of your community get the right coverage and peace of mind—but you'll also be able to network.
If you're a people person, this aspect of being an independent agent can add an extra layer of satisfaction to your work.
The more people you help, the more referrals you will get and the more your business will grow. You'll also be able to meet people from all walks of life and create valuable connections.
You Can Build Something for Yourself
Working as an independent insurance agent also gives you an opportunity to build something for yourself.
If you put in the work and perseverance, you can build your reputation and brand over time. This alone is worth a lot. The longer you serve your clients and community the more you will build a name for yourself.
Whether you employ other agents or not, you can build a business that has your stamp on it and reap the rewards into the future.
Are You Looking to Become an Independent Insurance Agent?
As you can see, there are a lot of attractive advantages to becoming an independent insurance agent.
However, there are also some challenges, especially if you don't have the right FMO partner.
Here at TR King, we are passionate about our agent's success. This is why we provide independent insurance agents with the best contracting experience, as well as agent exclusive discounts on things like leads, training, tools, and more.
Kickstart your career as an independent agent today and check out our easy online process to get contracted with the nation's leading carriers.