Considering your career options? If you’ve been thinking about a career in selling life insurance, then your timing is just right.
With many life insurance agents reaching retirement age, new advisors and agencies are needed to meet the growing demand among younger generations – and digital tools are now making it easier for advisors to sell life insurance and customers to buy insurance.
Here’s an overview of the life insurance industry today and what career opportunities are available.
Demand is increasing for life insurance.
Undoubtedly, a large market exists for life insurance in the United States. Only 59 percent of Americans have a policy, and half of those with a policy are likely underinsured.
One of the most recent life insurance trends of 2020 has been a significant increase in demand for life insurance. As people navigate an uncertain time, they’re taking stock of their finances and realizing the need for a life insurance policy that will protect their families and their assets in case of the unexpected. Many firms are seeing a significant increase in applications and are hiring more agents as a result.
The life insurance industry is also fast approaching what is known as the “Great Wealth Transfer.” As Boomers (ages 55–73) continue to age, they will be passing an estimated $68 billion in assets to their Gen X and Millennial children. More life insurance advisors are needed to help multigenerational families plan out their finances and ensure legacies are successfully passed down.
The opportunities available as a life insurance advisor
Not only is demand increasing for life insurance, but the industry is also in need of new talent. The average insurance agent is around 59 years old with many quickly approaching retirement age. This is perfect timing for industry veterans to pair up with younger insurance advisors to teach them how to sell insurance and pass on ideas on how to improve client relationships once established.
Younger generations have the perfect opportunity to move into an in-demand industry. And the good news is that it offers many of the benefits Millennials seek in jobs. An Insurance Journal study found that over 80 percent of Millennials working in insurance would recommend it to others. They attributed their recommendation to factors like
- Good work–life balance
- Opportunities for career growth
- Fair compensation
- A sense of doing good in the community
For life insurance advisors, the ability to help protect clients’ livelihoods and resolve financial issues through long-term planning can be incredibly rewarding. Financially, life insurance sales provide high commission potential, including renewals, for as long as the policy is in force, creating a passive income stream.
As Gen X and Millennials become prime markets for life insurance, new advisors may find it easier to connect with their needs using new life insurance sales tools. These on-the-go, tech-savvy generations fear a cumbersome and time-consuming life insurance process. By incorporating tactics like video conferencing, e-delivery of documents, e-signatures, and text messaging, advisors are seeing great outcomes and building strong client relationships.
How to fast-track your success with insurtech
While selling life insurance can make for a great career, the biggest challenge advisors face, especially when starting out, is finding and converting qualified opportunities into clients.
Advisors use a variety of sales and marketing tactics to grow their business – from old perennials like cold calling to newer strategies like digital advertising and social media – but the most effective one has been and always will be generating referrals. Doing great work for one client leads to a referral to a friend or family member, and this positive “word of mouth” creates a snowball effect.
Today, advisors can accelerate and multiply their referral strategy using powerful insurtech technology. Digital tools like LegacyShield link the advisor to their client through a private and secure client communications center. Once the advisor and client are connected, they can privately and securely share documents, information, and data with each other. Meanwhile, clients can upload additional information and are encouraged to invite their friends and loved ones to connect and gain access to the stored information now or at a predetermined date. When these loved ones join the platform, they become new contacts for the advisor as well.
This type of platform also provides benefits for clients, such as greater access to and organization of their financial assets and policies as well as a dedicated communication channel with their advisor.
By combining powerful digital tools with a good work ethic and commitment to clients, you can lead a successful, long-term career in life insurance.
For more reading on how insurtech can benefit your practice and your clients, read our blog, “How Insurtech Can Differentiate Insurance Advisors.”