Can I Sell Insurance Part-Time and Be Successful?

When considering a new career in a new industry, selling insurance is appealing to many people with a wide range of experiences.

In contrast to many other jobs in the financial sector, insurance can be a good way to break into the financial industry without requiring an expensive, time-consuming business degree. The requirements to sell insurance are relatively affordable and easy to meet.

How Can I Get Started Selling Insurance?

The exact requirements to become an insurance agent vary by state, but there are some common elements. In general, you’ll need at least a high school diploma or the equivalent.

You’ll also need to get licensed to sell insurance in your state. Getting licensed requires you to take an exam that tests your knowledge of general insurance information as well as the relevant laws and policies of your state. To prepare for the state exam, you can study on your own or take a pre-exam course if you want a more structured program.

Finally, in many states, you’ll need to find a sponsoring company — basically, an insurance company that agrees to provide you with resources and additional training to help you succeed while also ensuring you follow your state’s requirements. Even if your state doesn’t require you to be sponsored, it may be a good idea to do so since it can help you establish yourself as you begin a new career.

You’ll also want to spend some time thinking about your strengths and goals and how they will inform the kind of insurance business you begin. Before you take any official steps, consider how your skills will translate to a sales position to get familiar with the insurance industry and what kind of insurance you want to sell.

Costs of Selling Insurance

Besides meeting the educational and training requirements and being mentally prepared for a new career, starting your own insurance company will incur other costs, just like any other business. Fortunately, the costs of starting to sell insurance are relatively affordable. Your costs will vary depending on how and where you decide to set up your business.

The most common expenses include:

• Fees to form your business and get licensed
• General business and insurance-specific software
• Advertising and marketing
• Building and hosting a website

You may also have to pay for help (from an employee or contractor) and rented office space. Many new insurance agents can get started for an investment of just several thousand dollars.

Given that Ziprecuiter reports part-time insurance agents can make an average of $65,000 per year, you should be able to recoup those start-up costs relatively quickly. (Note: Income for part-time insurance sales can vary widely, depending on many factors, including where you’re located and how many hours you count as “part-time.”

Is It a Good Choice To Sell Insurance Part-Time?

When starting their career in the insurance industry, some agents opt to sell insurance part-time. That can be a good option for someone who wants to keep their day job or just test the waters of a new industry while making a little extra money.

But, you may be wondering: Can you successfully sell insurance part-time? That depends on a lot of factors. Like all sales-driven positions, the amount of drive and salesmanship you bring to the role will significantly impact your success as an agent — that’s true whether you opt to sell insurance 10 hours or 40 hours a week.

There are other complicating factors to consider. For starters, to get appointed as an agent, you may have to “write” a certain amount of business, which would require more time than a part-time agent may have. As an independent agent, juggling client needs among many different insurers and being available to answer client questions will generally require working full-time or close to it.

If you really want to start by selling insurance part-time and not full-time, there are options to help you do that.

Is It Worth Joining an Insurance MLM?

Some larger life insurance companies take on part-time agents. Because they’re large networks of agents, by working with them, you can get more flexible hours and help getting started. On the other hand, these companies are considered by many to be a type of multi-level marketing (MLM) group, which, while legal, is not something everyone is comfortable with. That’s because an insurance MLM will offer incentives — or may even require you — to use their own lead systems and to recruit other agents instead of focusing on your own business and clients.

Having those resources in place might be a benefit when you’re first starting out selling insurance part-time, but as you gain confidence and experience, you’ll likely want to strike out on your own. And, as your business grows, even if your original goal was only to sell insurance part-time, you may eventually realize it’s worth pursuing it as a full-time job.

How Do I Know When It’s Time To Sell Full-Time?

When you opt to work full-time selling insurance, you’ll find you can increase your income and create a more stable schedule for yourself.

Plus, since you won’t be splitting time between selling insurance part-time and another job, your knowledge of insurance will increase faster, leading to happier customers who feel like they’re getting top-notch service. Working in insurance full-time may also make it easier to get better benefits, such as those you can get working through an agency.

How Can I Protect My New Business?

Whether you decide that selling insurance part-time or full-time is the best option for you, you’ll want to ensure that your business is protected with appropriate insurance. Errors & Omissions (E&O) insurance covers agents like you against claims you’ve made a mistake that resulted in damages to a client. It’s also often required to be appointed and, in some states, licensed. NAPA, the National Association of Professional Agents, offers a great E&O option, which can be purchased for as little as $26.25 per month for new agents in the industry.

It’s an affordable way to protect your business, and coverage from NAPA also comes with the benefits of membership in NAPA. As a NAPA member, you’ll have access to dozens of resources to help you kickstart your new career, including savings on business supplies, shipping, referral software, and email marketing, as well as personal discounts at restaurants, travel, entertainment and tickets, personal insurance solutions, and more.

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