Different types of insurance agents and how they work

 

If you have an interest in helping people to select insurance policies, that will provide them with the best protection for their health, property and life, you can become an insurance agent.

 

Types of insurance agent

 

The different types of insurance agents are:

 

• Independent agent: The independent agents are those, who do not represent any particular insurance company. As an agent, you have to select insurance coverage from the company that best suits the customer’s needs. You will represent several companies and will get commission i.e. percentage of the total price of the policy you have sold, by that particular company, whose policy you have sold.

 

• Captive agent: The insurance agents who work only for a particular company are called captive agents. As a captive agent you will have a contractual agreement with a carrier and the carrier will be your employer.

 

• Broker: As a broker your work will be same as that of an independent agent, but, the main difference is, the agents represent the company, whereas, a broker represents the client.

 

 

Work of an insurance agent

 

As an insurance agent, you have to do many things like,

 

• You have to sell several types of insurance , like, health, life, property, disability, long-term-care, etc, to individuals, families and business organizations. And assist then in finding the best insurance policy for their individual needs.

 

• You also need to advise your clients on how to minimize their risk and you also may have to render help to comprehensive financial planning for the clients who are on the verge of retirement. Good verbal skills are a must!

 

• If you have proper license, you can also sell variable annuities, mutual funds and other securities.

 

• You have to do estate planning, retirement planning and have to help in setting up pension plans for business organizations.

 

• You have to find out new clients, maintain records and prepare reports. If an insured person incurs a loss, you have to help him to settle his insurance claim.

 

To be an insurance agent, you need to have a proper high school degree and a license. There is ample chance of earning a good income from this field, if you do your job with honesty and dedication.