The Life Insurance Agent’s Role in Selling Insurance Policies

Life Insurance Agent

A life insurance agent is a person who assists individuals, families and even businesses to safeguard themselves against financial ruin in the event that a significant person in the family or business dies or has a terminal illness.

They do this by selling life insurance policies to companies and individuals alike. The agents are hired by insurance providers to sell their insurance policies to various clients.

A life insurance agent is responsible for contacting potential clients and making appointments to meet with them. You should therefore not be surprised if you get an unexpected call from an insurance agent wanting to discuss life insurance policies with you.

Appointment

During the appointment, you will normally be given the chance to explain what your expectations are, and based on these, the life insurance agent will be able to advise you on the appropriate life insurance policy options that can be availed to you by the insurance provider. Several details will be explained to you, including the premiums you will be paying and the amount you will be able to claim should the event insured against occurs. Details of the risks that will be covered by the insurance policy are also discussed so you will have a clear view of what to expect once you take out the life insurance policy.

Critical skills

You can easily identify a good life insurance agent as they normally have very good interpersonal and communication skills. This is because they deal with all sorts of people on a daily basis. Whichever type of client they call or meet, the agent always has to remain professional as they create awareness and educate clients on the various policies that are available. A good insurance agent should also be good with numbers, and should accurately be able to work out with you the premiums you will be paying and the amount of money you or your dependents will be able to claim.

Mobility

Life insurance agents are very mobile, and they will be able to come to you at their own cost to discuss the insurance policy that is best suited for you. You can also contact them at their offices if that is more convenient for you.

Commission

Once you have discussed the details of an insurance policy with the life insurance agent, he or she will normally prepare a quote for you. If you are satisfied with the terms provided in the quote, the insurance agent will guide you in signing an insurance contract. You will then begin to pay monthly premiums to the insurance company. At the end of the first year, the insurance agent will be paid about 30 to 90 per cent of the premiums you will have paid. In subsequent years, however, the amount paid to the agent may reduce to about 3 to 10 per cent. Read: No insurance, how to sue someone

Becoming an agent

In case you are interested in becoming a life insurance agent, the first step is to prepare your resume, which should highlight instances where you have been a go-getter. Reputable insurance companies will normally post vacancies for insurance agents on the internet, and you can check the various vacancies and apply for a position that best suits you.