1. Research requirements for becoming a life insurance broker, which vary by location.
Some states require a certain number of training hours before you take a
state licensing exam. Check your state's insurance department website
for specifics.
2. Take business courses or training geared to life insurance brokers.
A degree is not required. Even if your state doesn't require you to
train or take classes before taking a licensing exam, it will benefit
you in your new profession.
- You can find training courses through national, state or regional professional life insurance organizations, as well as through insurance agencies.
3. Take the state licensing exam, which covers life insurance basics and insurance laws in your state. To prepare, consider purchasing a state exam book that includes a practice exam or enroll in a prep course.
4. Apply for an insurance broker's license. You must
submit the application, proof of education (if required) and proof that
you passed a state exam to your state's insurance department. You must
renew the license after a period of time, usually every two years.
5. Become a member in industry associations, including the
National Association of Insurance and Financial Advisers, the National
Alliance of Life Companies and the National Association of Independent
Life Brokerage Agencies. Join organizations with a strong presence in your area to get the most from a group's training and networking opportunities.
6. Establish an office.
- As you first start out, you might be able to work out of a home office. As you get established, you may want to look for a visible outside office space to meet your needs. Look for a clean office that has an inviting atmosphere.
- Purchase a desk, computer, business cards, stationary and printer. For software, make sure you have an office program that has an invoice option.
7. Practice salesmanship skills.
- Listening is the most important. You have to be able to hear what the potential client really wants and be able to provide him with a plan that fits his needs. Customers will trust you if you listen.
- Explain the parts of a life insurance policy that will benefit a customer most. Be persistent at following up after every appointment but be careful about over-doing it. No client wants to feel bullied into buying a policy.
- Make sure your sales pitch and presentation are well thought out and practiced, highlighting the key areas of interest to your potential customer.
8. Market yourself by advertising in a variety of mediums, including the local newspaper or radio station, or billboards. Design a website that's not only attractive but contains helpful information.
9. Advance your career by becoming a certified broker.
Certification is a special designation given to those with expertise in
their area of insurance. Professional organizations, including the
National Alliance for Insurance Education and Research, offer courses in
which you must master to become certified.
- Though completely voluntary, certification can help you stand out from the competition. Continuing education in your field is required in order to keep such a designation.