You can definitely find a lucrative career as an insurance broker. There are more and more people who need to get themselves covered. The health care insurance alone has more than 30 million possible clients. What you need now is to know how you can become one.
Know Thyself
The first step is to decide if this is the road that you want to take. There’s a difference between an agent and a broker. If you’re going to be the latter, you’re not bound to any company, which can be both an advantage and a disadvantage.
It’s something good because you can work with as many companies as you can. By doing so, you can provide much better options to your clients. It is not good because you don’t have any tenure, which can be extended to regular employees like the insurance agents.
You will also have heavier responsibilities when you’re a broker. You just don’t sell insurance policies. You help out your clients in determining the types of insurance they should purchase, the kind of coverage they need to have, and the best ways on how to enjoy all the benefits that come with the policy without spending a lot of money. You are therefore there to educate.
If you can’t handle these kinds of tasks, you might as well begin as an agent until you can acquire more confidence to tackle bigger roles.
Clean Your Record
Don’t think that your own life will not be in full view if you apply for a broker. Insurance companies will check a lot of things about you. First, they want to know your lifestyle. A spender may not qualify as a broker because he or she does not deserve to provide sound financial advice to clients. You surely won’t get accepted if you have a criminal record, including felony and misdemeanor. You may also have a hard time with your application if you yourself have poor credit rating, if you have plenty of delayed repayments or defaults, or if you have declared bankruptcy.
Apply for a License
This is also one of the differences between an agent and a broker. If you want to become the latter, you need to be licensed. This means that you have to take the necessary classes or training then pass the certification or licensure exam before you can practice your profession.
You can approach your state’s licensing authority to know the requirements. You also have to remember that you cannot practice in just about any other state. For example, if you’re planning to broker policies in New York and Florida, you need to take their respective licensure examinations.
Get Involved
Once you are already a licensed broker, you then need to start building your network. You may start with your family and friends, then move on to associations and organizations. It is wise to become part of a brokerage group because you will not only be able to expand your connections, but you will also be able to improve your resume or credit list.