So you want to join the insurance industry...
If you believed in every stereotype out there you would probably think the moon is made of cheese, all Canadians are polite and the Brits have awful teeth. You might also think that Insurance is for just for old guys who like to go bowling on the weekend, however, you would be wrong, or well not completely correct.
The insurance product is an amazing financial vehicle that should not be ignored by young ambitious financially minded individuals who are looking for a career that not only makes a huge impact in peoples lives but has the potential to cash big cheques and enjoy a few other perks.
The problem of succession
The insurance industry has a looming problem on its hands, not enough people are entering the industry and those who are in the twilight of their career are still hanging on to their block for the renewal income but not necessarily servicing those clients to their full potential. In fact, an article in Investment Executive stated that:
Although 90% of advisors feel they have an obligation to their clients to create a succession plan, only 19% of advisors have a succession plan in place
The article also states that the average age for an insurance agent is 59! This represents a huge opportunity for young ambitious individuals looking for a career path they can grow with
Why should you join the insurance industry?
Ok so the industry has a need for fresh young faces, but you maybe be asking yourself "Why should I join this industry and sell Life insurance?"
We did too, so we asked some of our friends in the industry to offer their unique perspective asking two main questions.
What piece of advice would you offer someone thinking about joining this industry?
What is the best perk of the industry?
What Piece of advice would you offer someone thinking about joining this industry?
Serge Therrien President and Publisher The Insurance Journal.
Erica Lee CFP, CLU, CHS Erica Lee Financial.
Andrew Fink Vice President, Sales for Hub Financial
Ryan King of Complete Retirement Solutions
Justine Zavitz Zavitz Insurance Inc.
What is the best perk of the industry?
Serge Therrien President and Publisher The Insurance Journal.
Erica Lee CFP, CLU, CHS Erica Lee Financial.
Andrew Fink Vice President, Sales for Hub Financial
Ryan King of Complete Retirement Solutions
Justine Zavitz Zavitz Insurance Inc.
Other Reasons to consider the Insurance Industry
- Earn Money While Enhancing your designation
- Flexible Work Hours
- Travel
- Compensation
- Always a Need for your product
- Selling Peace of Mind
- Golf
While there are lots of very well educated people in the insurance industry and a lot of degrees that compliment your insurance licence it's not a career that you need to have oodles and oodles of schooling before you start making a living. The insurance industry makes a great case for getting your licence to sell and start making some money as you build up your designations and service offerings. Earning money while you learn is a practical way to climb the professional ladder and help you find your nitch.
Like any entrepreneur often people assume you get to choose your own hours when in reality they often choose you. As an independent advisor, you can choose your hours. Some advisors find they can take a few months off a year if they put in the work early. With the increase in non-face to face apps many advisors are also finding they can work from anywhere. I have lots of advisors who have let me know they have closed large whole life cases working off their dock with a shared case link.
Many times people say travel for work is a dream, in reality often times it means seeing the inside of a boardroom in an exotic location. For advisors this is not always the case, continuing education for top producers often takes place in exotic locations where they can bring their family. After a half day of learning time to hit the beach, spa or the links to get some well deserved R&R.
While the average salary for a life insurance advisor hovers around 50k-60k, many independents (especially those using Life Design Analysis shameless plug) are easily able to achieve a 6-7 figure income. Advisors get paid from a combination of first-year commision(FYC) the value of the first year premium and a bonus based on their production level. Find the right nitch and you might only need a few sales a year to cover your basic salary needs.
Many Products are seasonal or come in vogue, however, insurance is not one of them, even though the product itself is dynamic and always changing due to the changing nature of the financial industry and advances in health the core concept and the need for life insurance has not changed. As soon as a person has a liability there is an opportunity to fund that liability at a lower cost using life insurance. for many, this is buying their first house or having their first child however even as clients mature they often turn to life insurance to complement their investment portfolio or minimize their tax bill.
Life Insurance is something lots of people would prefer to ignore as we have to face the thought of our own death to receive the benefit. However, for those in the business, we can't forget that we are selling peace of mind. Check out these real-life claims stories and share with your clients.
Ok this one might only appeal to golf nuts like myself, however, the financial services industry is a great play to do business and get a game of golf in all at the same time.
Common Objections To Joining the Insurance Industry
Stigma
Stigma is a powerful force, stigma can prevent people from revealing even their most fundamental truths out of fear of judgement. Some people might rather be a poor mortgage broker than a top 20% insurance advisor. However, life insurance is seriously important stuff and has a pretty sexy place when properly implemented in a financial plan. Insurance solves a lot of problems you might not think about at first brush.
Let's face it most people don't react like this when we talk about life insurance.
But they should because once you have life insurance inforce you have some kind of guarantee and it likely solves a problem in an area they have put off or ignored.
Sales is hard
Sales is hard unless you work at the Apple store. Asking people to part with their money is always hard. It can be particularly hard when it's not for a tangible item, a fast car, a new cell phone but persistence is key and the reward is two-fold. Let us be honest what job is not a sales job.
Conclusion
In conclusion if you're looking for a rewarding career that gives you flexibility, great compensation and as you heard from our experts perhaps the best perk is a rewarding purpose that helps you help families protect thier financial security.
As with anything there is going to be challenges but finding a good mentor and staying apprised of the best technology has to offer is a great way to gain an edge in a market that is ripe with innovation! there is a huge opportunity for Advisors looking to acquire and grow a block of business and for the seasoned advisors looking to transition your block of business remember that your block is more valuable when you can show what is in it, what work you have done and have a compliance back up of your documents. Schedule a call or contact us to see how LDA can add value to your practice.
Book a training session with Jon or Nik from our support staff to see how Life Design Analysis can add value to your practice (just click on their names).
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