Is Life Insurance a Good Career Path? Pros & Cons for Aspiring Agents

Do you like helping other people plan for their future while also securing your own future? If so, it might be time to ask if being a life insurance agent is a good career path for you.

Maybe you’ve considered being a life insurance agent or you’re just exploring new career options. You might be curious about things like career stability, income potential and work-life balance. This article will answer some of the most common questions when exploring a career as a life insurance agent.

What does a life insurance agent do?

Before we talk about what a life insurance agent does, let’s clarifywhat life insuranceis. When loved ones pass, life insurance can help provide financial peace of mind to their beneficiaries.  Some policies also offer benefits for chronic and critical illnesses during the life of the insured. The usefulness of life insurance transcends age, gender, education level or socioeconomic group.

People need to understand their life insurance options and how to assess which life insurance policy will meet their needs. That’s where a life insurance agent can help, assessing the life insurance needs, explaining the life insurance policy options, helping to submit an application for life insurance to the insurance company, answering questions and assisting as needs change over the life of the policy, and supporting insureds and beneficiaries when a claim is made.

What are the licensing requirements to sell life insurance?

To make life insurance your career path, you need to get licensed in each state, province or territory where you will act as a life insurance agent. The process usually includes education and training, a license exam and licensing fees. Your license will also need to be periodically renewed. For agents in the U.S., the National Insurance Provider Registry (NIPR) provides a list of requirements by state. For agents in Canada, requirements vary by province or territory.

Starting and running your life insurance business

Starting any business on your own will be challenging. One way to find support is to contract with an insurance agency, like World Financial Group, which can help provide access to education and training, insurance-specific information and tools, a platform with well-respected insurance products and a diverse community of other life insurance agents who understand exactly where you are in your own journey.

As an independent agent, you are accountable for your own success. You will need to identify prospects, meet with them, make a competent assessment of their life insurance needs considering their financial situation and have a thorough understanding of available life insurance products, carriers, options, regulations and processes. Therefore, being a life insurance agent requires the desire to become and remain financially educated, dedication to learning and ongoing financial training, the ability to foster strong relationships with current and potential clients, an orientation to detail and organization and the development and practice of excellent communication skills.

Why do people consider life insurance as a career?

Now that you know a little about what the career entails, you may be wondering, “is selling life insurance a good career move?” In short, many people consider this field because they find it fulfilling, flexible, interesting and rewarding.

If you enjoy talking with and helping a diverse range of people, you may find fulfillment in the life insurance industry. In addition, you could achieve financial independence and business ownership. There are opportunities to bring other people into the industry and help them discover their own life insurance career path.

What are the pros of selling life insurance?

The pros of selling life insurance include:

• Serving your community.  Probably the biggest pro of being a life insurance agent is the opportunity to improve the financial literacy of people in your own community and to help them achieve their own financial security.
• Projected growth: According to LIMRA, the life insurance industry has seen recent growth and remains on a growth trajectory.
• Flexible work schedule: You are accountable for your own success. As an independent agent, you decide your own work hours.  Many agents start off part time, and then transition as they build client relationships and a team.
• Income based off your efforts: Although income is directly tied to your success in selling, there is also no pre-set limit on your earnings each year like there is in an hourly or salaried position. Many agents start off part-time, continuing to work in other industries while building their insurance business.
• Opportunities for growth and leadership: Agents can grow their business, and potentially earn override commissions, by bringing on other agents and providing them mentoring and support.

Running a business is hard work but it can also be particularly rewarding. If you have an entrepreneurial spirit and enjoy taking the lead, a life insurance business may be a great fit for you.

What are some considerations when starting a life insurance career?

Even with all its pros, a career as a life insurance agent is not for everyone. Some of the factors to consider when choosing to get into life insurance include:

• You will work primarily for variable sales commission rather than a set paycheck, and you will have up front and ongoing business expenses.
• There is a lot of interpersonal communication and answering questions.
• It is an ever-changing industry, so you will need to be someone who likes to continuously learn new things.
• Because not everyone understands how life insurance works, you might find that people are skeptical at first when you tell them what you do.
• It’s demanding and competitive. Some people thrive on competition, but it can also be stressful, especially when you’re just starting to build your business. You will need to work hard to earn clients and build your business.
• The industry is heavily regulated, which means you must take the time to understand regulatory compliance. Life insurance is subject to complex laws and regulations, which is why the training and licensing requirements exist. Individuals cannot participate in any unlicensed activities, including solicitation of insurance, or sales prior to receiving a state or provincial insurance license. Non-compliance could cost you your license or even your business, so make sure you are ready to understand and adhere to the regulations.

How much do life insurance agents earn?

Of course, you will be wondering whether life insurance agents make good money and everyone’s business is different. One agent may start out selling life insurance as a “side hustle” and make a little extra income, while another builds their business, grows their team and creates a significant insurance business. It also varies by state and by the types of insurance solutions you sell.

When calculating your expected earnings, you will need to account for upfront costs such as licensing fees and the expenses of running your own business. Learn more about what you can expect as an independent insurance agent with WFG.

What skills make a successful life insurance agent?

As with any career, the right skills can support your success. You may already have some of these skills or you may choose to learn or improve them in order to maximize your chances of a rewarding life insurance career.

• Good interpersonal skills that allow you to speak comfortably with a diverse range of people. You may be working with people of all ages, couples, families and those in differing financial situations.
• The ability to listen and communicate clearly. You will need to build rapport with clients, explain complex insurance concepts clearly and answer their questions patiently.
• Previous experience in sales. If you have ever worked in a restaurant or retail job, for example, you may already have a solid understanding of sales concepts and how to build relationships with customers. If not, you can build these skills over time.
• Caring and concern for others. People buying life insurance are doing so out of love for their loved ones and thinking about their future. These situations sometimes bring up strong emotions, so it’s important to approach them with understanding.
• The ability to understand financial concepts. You will need to learn about various insurance solutions with different costs and financial implications. Each person or family has a different financial picture, so you will do some problem-solving to help them get what they need.
• Planning and organization skills. It will be important to manage your client’s needs, meetings, scheduling, and other administrative tasks with care. As you grow your business, you will need to manage more and more competing tasks and deadlines.

How do you know if life insurance is the right career path for you?

The main question to ask yourself is, does the prospect of helping people plan for their financial future excite me? If you answered “yes” to that question, then consider the other pros, cons and required skills to become a successful life insurance agent.

You need to be motivated and driven to succeed, and open to having a commissions-based income that is based on the time you put in, your sales skills, and your ability to build client relationships. A strong business network can put you a step ahead, though, as you may find a client base among your existing contacts, then grow from there. Word of mouth can go a long way in this business, which is based on relationships and trust.

Another factor in whether life insurance is the right career for you is whether you are able to understand and explain financial concepts or are open to learning to do so. A big part of WFG's mission to leave no family behind is founded on the belief that everyone deserves access to financial education and, so, gaining and imparting financial knowledge is a key part of a WFG agent’s role.

Final thoughts: Should you pursue this career path?

Becoming a life insurance agent and independent business owner in the financial services industry takes hard work and determination to succeed. World Financial Group can support you on your path to becoming an independent insurance agent.

You probably still have questions.

Explore our agent expectations page to learn more about what you need to succeed, the commitment, and the expenses you’ll incur.

If you want to hear from other independent business owners who have discovered WFG, take a look at our agent testimonials.

When you decide to pursue a career as a life insurance agent and independent business owner, there is no time like the present to take the first step.

World Financial Group Insurance Agency, LLC, World Financial Group Insurance Agency of Hawaii, Inc., World Financial Group Insurance Agency of Massachusetts, Inc., (In California doing business as World Financial Insurance Agency, LLC) and/or WFG Insurance Agency of Puerto Rico, Inc., collectively WFGIA, offer life insurance products.

Headquarters: 6400 C Street SW, Cedar Rapids, IA 52499. Phone: 770.453.9300

World Financial Group Insurance Agency of Canada Inc. (WFGIAC) offers life insurance and segregated funds.

Headquarters: 5000 Yonge Street, Suite 800, Toronto, ON M2N 7E9. Phone: 416.225.2121

Each company is solely responsible for its own financial conditions and contractual obligations.

The career opportunity is for an independent contractor who would be compensated by commission. People experience various levels of success with WFGIA and WFGIAC. Individual results may vary.