18 Pros and Cons of Being an Insurance Agent

Insurance agent

Insurance agents work hard to inform people about the various types of insurance.

You can be versed in a variety of insurance types to help you offer more (and earn more).

By learning about the pros and cons of being an insurance agent, you can decide if it’s the kind of career path you want to go down.

Pros of Being an Insurance Agent

Being an insurance agent allows you to be involved in a professional career where you can work for any number of companies or brokerages.

Exploring the pros can help you to get excited about the possibilities that exist within the career.

1. Earn Good Money

You have the potential to earn good money as an insurance agent.

Depending on the type of insurance you sell, you can always find customers who are in need of the insurance products you have to offer.

Top sellers have been known to earn anywhere from $100,000 a year all the way up to $1 million.

There will be some hustle on your part to become a top seller, however.

2. Have a Consistent Schedule

Insurance agents work fairly consistent schedules.

You will most likely work Monday through Friday without a change to your schedule.

This makes it easy for you to plan your life around work.

Often, you will work 40 hours a week without having to worry about overtime.

In the event you do have to work late, it will be on the rare occasion of a meeting or training.

3. Avoid Working Holidays

Insurance agents do not have to worry about working on holidays.

This means that you will get all of the major holidays off so that you can spend time with family and friends.

The office will likely be closed, so you will not have to deal with anyone calling you to come in or answer work questions, either.

4. Avoid Physical Work

If you are worried about heavy lifting or spending a lot of time on your feet, do not be.

Working as an insurance agent is a relatively easy job.

You will be seated at a desk and will likely spend most of your time on the phone or a computer.

You will not do any heavy lifting except on the occasion when you have flyers or folders that need to be carried into a meeting or a special function.

5. Obtain Sales Skills

You will need to have sharp sales skills so that you can be a successful insurance agent.

This is something that you will develop over time – and the company that you work for will likely dedicate a significant amount of time and energy to training you to be the best salesperson possible.

These skills will translate well for other sales jobs that you may wish to take on later.

6. Work with Different Types of Insurance

You will have the ability to work with all sorts of different types of insurance.

You may start out with auto or home insurance.

From there, you can branch out into health and dental insurance, life insurance, and more.

As you grow to encompass more types of insurance, it will help you extend your network and increase your earning potential.

With each new insurance product, you wish to offer, there will be added training.

7. Enjoy a Nice Work Environment

The environment you work in is usually comfortable.

You will get to work in an air-conditioned building and have the ability to sit and relax at a desk.

Depending on the size of the company you work for, you may have an office or a cubicle.

Either way, you will be able to have conversations with other people around the office.

As you get training and such, you may also be able to network inside of a large conference room.

8. Develop a Great Network

You will have the opportunity to develop a large network of contacts over time.

This will be developed based on the clients you work with as well as the meetings and conferences that you attend.

As you grow your network, you will find new insurance products to offer, learn new ways to attract clients, and even discover new and exciting career opportunities so that you can increase your earning potential.

9. Maintain a Good Work-Life Balance

You will find that being an insurance agent provides you with a good work-life balance.

You will be able to work while still having plenty of time to enjoy your life.

Most insurance companies will provide sick time as well as vacation days, too.

This can make it easier for you to take advantage of your time away from the office so that you return feeling refreshed and ready to sell insurance once again.

10. Socialize

There are all sorts of ways for you to meet new people and socialize as an insurance agent.

You may want to get involved in the Chamber of Commerce or hold various meet & greet events inside of your community.

Getting your name out there is a big part of your ability to succeed – and when you love to socialize, it will make everything that much easier for you.

Cons of Being an Insurance Agent

There are some downsides to being an insurance agent.

Knowing the cons will help you to decide if you are okay with all aspects of selling insurance before you get started.

1. You Will Have to Deal with the “Hard Sell”

Selling insurance is not always easy.

In order to meet your quota in many instances, you will have to get used to what is known as the “hard sale.”

It is where you may have to do a lot of convincing that people need a particular insurance product – and you shouldn’t take “no” for an answer.

2. Working an Office Job Can Be Boring

Working in an office can be boring.

You may have to sit for hours at a time in front of the computer and talk on the phone.

In some instances, you may be crowded into a small cubicle.

You may not get a lot of physical activity throughout the day, creating a very sedentary lifestyle.

3. There is Not a Lot of Career Growth

Once you become an insurance agent, there is not a lot of career growth.

You may very well be an insurance agent 10 years or 20 years down the road.

The only thing that may change is that you sell more types of insurance, or you are selling more expensive policies.

One of the few ways to achieve growth is by owning your own insurance company, and this can require a significant amount of startup cash.

4. Building Trust is a Challenge

People buy insurance from people that they trust.

No one wants to find out that they have been scammed out of their money by buying a policy that they do not need.

When you are selling insurance, you have to spend a lot of time building trust.

Without trust, it will be very hard for you to sell products to people because they will not know whether you are looking out for their best interests or not.

5. One Wrong Move Can Damage Your Reputation

Your network is everything when you are an insurance agent.

If you do something that damages your trustworthiness, it can affect your ability to sell future policies.

Similarly, if you do something wrong, such as misinform someone about a policy, it can damage your reputation, making it hard for you to sell policies to people in the future.

6. Company Goals Can Be Hard to Meet

The only way for an insurance company to make money is to sell insurance policies.

Depending on the type of insurance that you sell, you may be required to sell a certain number of policies each and every week.

Meeting these goals will require cold-calling, tapping into your various networks, and more.

7. Regulations Change Frequently

You will need to have an insurance license from your state, which means that you need to study for the licensing exam.

Additionally, the insurance regulations will change from time to time.

As such, you will need to take various courses and seminars to stay up on these changes.

This information will be critical when you apply to renew your license on a regular basis.

8. It Can Be Stressful

There is a lot of stress involved with being an insurance agent, especially when there are quotas that you need to meet from the company that you work for.

If you are not selling enough policies, it can affect your paycheck as well as your position with the company. In some instances, you may be let go if you’re not meeting enough goals.

Pros and Cons of Being an Insurance Agent – Summary Table

Pros of Being an Insurance AgentCons of Being an Insurance Agent
1. Earn Good Money1. You Will Have to Deal with the “Hard Sell”
2. Have a Consistent Schedule2. Working an Office Job Can Be Boring
3. Avoid Working Holidays3. There is Not a Lot of Career Growth
4. Avoid Physical Work4. Building Trust is a Challenge
5. Obtain Sales Skills5. One Wrong Move Can Damage Your Reputation
6. Work with Different Types of Insurance6. Company Goals Can Be Hard to Meet
7. Enjoy a Nice Work Environment7. Regulations Change Frequently
8. Develop a Great Network8. It Can Be Stressful
9. Maintain a Good Work-Life Balance
10. Socialize

Should You Become an Insurance Agent?

Becoming an insurance agent will require some training – and some companies will require you to have a college degree, too.

Familiarize yourself with the requirements.

Decide if you are outgoing enough to sell insurance as it is not a job that everyone can be successful with.

Once you weigh the pros and cons of the job, you can decide if being an insurance agent will be the career that is right for you.

Jamie Willis