A career in insurance is more than just a job—it offers the opportunity to make a positive impact on people’s lives by helping them prepare for the unexpected.
The time it takes to turn your career ambitions into reality varies based on state, educational requirements, and the type of agent you seek to become. Understanding these influential factors can provide valuable insights, allowing you to better anticipate the timeline and prepare accordingly.
So, if you're thinking of becoming an insurance agent, it's imperative to understand the steps and timeline involved.. In this blog post, we'll lay out the roadmap to becoming an insurance agent and shed light on the factors that influence the time it takes to become a licensed agent.
At a glance:
By becoming an insurance agent, you’re also becoming a trusted expert and advisor, helping individuals and businesses safeguard their futures. Whether you're intrigued by the prospect of guiding homeowners toward comprehensive coverage or drawn to the intricate world of insurance solutions, becoming an insurance agent is a fulfilling journey.
The first step in considering a career in insurance is identifying the type of agent you want to be. This means determining whether to pursue a career as a captive agent or an independent agent, and the line of business you want to be in, such as property and casualty insurance, car insurance, or life and health insurance.
Captive agents are those who work exclusively for one insurance company. These insurance agents are beholden to the products the insurance company offers and cannot sell other insurance companies’ policies.
Independent agents, on the other hand, are not limited to selling the insurance products offered by one entity alone. Rather, they have the flexibility to quote an insurance policy from several insurance companies, requiring the agency the independent insurance agent works at to obtain insurance carrier appointments with various insurance companies.
In addition to choosing whether to go the route of a captive agent or pursue a career as an independent agent, you also need to determine what line of business you want to be in which can range from property and casualty insurance to life insurance or health insurance.
Once you've determined the type of agent you want to be and an area of expertise, it's time to acquire the knowledge and skills necessary to excel as an insurance agent.
Many insurance agencies and companies seek candidates with at least a high school diploma or equivalent. However, having a college degree can often set you apart and provide a strong foundation for understanding complex insurance concepts.
You can’t sell insurance through an insurance agency or otherwise without getting licensed and each state has its own set of license requirements for obtaining an insurance license, so it's important to review the specific regulations for your state.
After completing the pre-licensing educational requirements, you'll need to pass a state-specific insurance license exam. This exam evaluates your understanding of insurance concepts and ensures you have the knowledge needed to provide accurate information and advice to clients. It’s important to note that exam requirements may vary by state, so be sure you’re familiar with your current state’s requirements.
You should also consider seeking assistance from experienced insurance agents who can help you navigate the prerequisites to becoming an insurance agent. You can also look into a state-specific licensing course or other online tools to better prepare you for the insurance license exam.
Once you've acquired the necessary education and training, and passed your state’s licensing exam, you are almost to the end of your journey to becoming an insurance agent! At this stage, you can submit your license application to the relevant state authority. Keep in mind that a background check may be required as part of the application process.1 Upon approval, you'll receive your insurance license, officially marking the start of your journey as a licensed insurance agent.
Even after you’ve obtained your insurance license, your journey as an insurance agent isn’t over; it’s an ongoing effort due to continuing education requirements. These requirements ensure insurance agents stay up-to-date with industry changes and can vary by state. You can typically find information about continuing education requirements on your state’s insurance regulatory authority.
The process of becoming a licensed insurance agent involves several distinct phases, each contributing to the overall timeline. With the right tools and a clear roadmap, you can chart a successful course toward becoming a knowledgeable and effective insurance agent, specializing in providing vital insurance coverage for homeowners' peace of mind.
If you’re passionate about helping others and have a strong interest in the insurance industry, consider becoming a home insurance agent. Not only will this career path allow you to help homeowners protect their investments, but you'll also have the opportunity to make a positive impact in people's lives. Working with a home insurance provider like Openly, known for its innovative and agent-friendly approach, can enhance your ability to serve clients effectively and grow your career.
This article is for informational purposes only. For specific agent licensing requirements, review your state’s department of insurance website for details.
1 Regina Stephenson. "State and Carrier Requirements Vary on Insurance Background Checks." AgentSync. Published 30 August 2021. Accessed 8 September 2023. https://agentsync.io/blog/producer-management/state-and-carrier-requirements-vary-on-insurance-background-checks.