How Long Does It Take To Become an Insurance Agent?
By Jason Rogers
It’s easy to break into insurance sales but hard to succeed at it. A slow and steady approach should produce a better outcome.
If you’re considering becoming an insurance agent, you’ve probably begun to think and research the question of how long it takes to become one. Realistically, becoming an insurance agent takes a few years. But once you decide to dive into a career as an agent, the process of getting licensed and operational is easy to manage— at least compared to professions such as law, medicine or engineering.
But you can’t just snap your fingers to become an agent magically. You should follow a structured process and invest significant time and effort. Below is an outline of steps and time estimates to help plan how long it might take.
Deciding Whether to Become an Insurance Agent
When contemplating a career change, avoid making a rash decision. You want to be sure the job you’re considering is appropriate for your skills and temperament and that you’ll be happy doing it for many years. Research is key to making a good decision.
First, explore whether insurance sales is a good fit for you. Read online guides to the agent career. Talk to people who are currently doing the job. Do informational interviews with local agencies. After you complete your research, summarize your findings. List the advantages and disadvantages of the job on a sheet of paper. Weight each factor in terms of importance. Then decide whether the pluses exceed the minuses or vice versa.
How long it takes: Depending on your research, expect to take a couple of months to complete this step. If you work quickly and limit research, you might complete it in a month.
Getting Licensed to Sell Insurance
Before you get licensed, decide which product or products you want to sell. Each will require a separate licensing process. Also, getting licensed is a state- and territory-based procedure; therefore, the logistical steps and required education will vary based on where you want to sell insurance.
For example, about a dozen states require insurance agents to be 18 years old and pass a licensing exam for each product they sell. About seven states add fingerprinting as a requirement. Another 18 states require new agents to complete pre-exam education consisting of a minimum number of study hours, then pass a test and get fingerprinted.
Completing pre-exam education is the most time-consuming part of getting licensed in the states that require it. In Florida, it can take anywhere from 20 to 40 hours of instruction for a life and health license and up to 200 hours for a property-casualty license.
You can accelerate your training by attending a weekend cram course. In some states, you can log 40 hours of training over two consecutive weekends. Alternatively, you can opt for online self-study training completed at your convenience. The latter approach might take several months to finish rather than two weekends.
How long it takes: If your state requires pre-license training, a licensing exam and fingerprinting, you might be able to get your credential in four to six weeks, assuming you do a cram course. On a self-study basis, it may take a couple of months.
Deciding on Your Business Model
A crucial decision is whether to become a captive agent or an independent producer. Captive agents work for a single insurance company. Also known as career or exclusive agents, captive agents can only sell their employer’s products.
Independent agents, on the other hand, work for themselves. This allows them to seek appointments with multiple insurers and sell products from various companies. It also lets them run their businesses as they see fit.
Both business models have substantial advantages as well as disadvantages. The one you pick should depend on how it fits with your career goals and temperament. Make this decision the same way you decided to become an agent in the first place: by researching on the internet and then speaking with people who work under each system. The right decision will become evident with the more research and interviews you complete.
How long it takes: It could take four to six weeks, based on how much research you do.
Finding an Agency to Call Home
If you take the captive agent path, you must now land a position with a local insurance agency or an insurance company that does direct sales. Here are some tasks you’ll need to complete:
- Develop a list of potential employers.
- Research the companies online.
- Find people currently working for the companies and interview them for information.
- Apply to the companies that passed your due diligence screen.
- Consider one or more job offers, and select the most attractive one.
How long it takes: Anticipate spending two to three months to complete this step.
Setting Up Your Business
If you go the self-employment route, you face the complexities of establishing a business. The process involves finding and equipping a business location, selecting your legal structure, purchasing business equipment, creating a marketing plan and buying insurance to cover your liability and property damage risks.
You don’t want to rush things at this stage. The quality of your planning will determine how successful your company is months and years from now. Do it right the first time around!
How long it takes: To ensure future success, this could take six months to a year.
Learning the Insurance Sales Job
You’re licensed, but you’ll still have a lot to learn about generating leads, assessing client risks and recommending insurance solutions. You also won’t know how to close sales, which is an essential skill for any agent who wishes to succeed in this business.
To achieve your goals as an insurance agent, consider pursuing a variety of training opportunities:
- Industry-based training courses that build on your product and sales knowledge
- Company-based courses if you joined an insurance agency or carrier as a captive agent
- Insurance marketing organization (IMO) or financial marketing organization (FMO) product and sales training if you opted to become an independent agent or broker
- Mentoring from a senior agent with experience in your product line(s) and market niches
Given the complexity of insurance products, sales, service and claims, learning the job fully can take years. The more high-quality training programs you complete— and the more experienced and generous your mentors— the faster you’ll become successful.
How long it takes: This step can take one to two years or more.
Success Takes Time and Effort
How long it takes you to become an insurance agent will depend on multiple factors:
- Your prior experience with insurance
- Your sales knowledge
- Where you plan to do business
- Your learning ability and style
- Your focus and fortitude
Finally, it will depend on your passion for selling and serving your clients. If you do the hard work required to break into the business and refuse to quit, you will likely succeed as a new agent.
Protect & Advance Your New Career
It’s imperative to your financial success as an agent to operate your business with a keen eye. Clients entrust you to take care of their insurance needs, and any mistake made by you or your staff can result in a costly liability claim against your business. Even with the proper steps taken each time a sales or service interaction occurs, mistakes can happen. On the flipside, clients can always become dissatisfied with your service, even if you did everything right.
That’s why it’s critical to purchase Errors & Omissions (E&O) Insurance. With AIP, for as little as $28.75 a month, you can ensure that you’re protected should a client sue or you make a costly mistake. Having E&O Insurance might also help speed up your appointment or licensing, as many carriers and states have requirements for insurance agents to carry this important professional liability insurance.
AIP also provides a substantial slate of benefits included with your insurance coverage purchase. These benefits are a great way to kick off your new career in the agent world, including a free continuing education voucher, office supply and shipping discounts, and programs to help you save on building an insurance agent website, creating referrals and buying leads.
Becoming an AIP Member also helps with advancing your skillset as you continue to grow. With your membership, you’ll have access to discounted prelicensing courses through ExamFX. With savings of up to 58% off, you can expand your offerings and create additional income avenues for your business. Save on prelicensing for Life & Health, Property & Casualty, Personal Lines, Limited Lines, Adjuster, Series 6 & 63, 65, 66, 7, 24 and 26 licenses.
To learn more about AIP's insurance agent E&O program, visit our E&O coverage page and find coverage right for your business.