Is Life Insurance A Good Career Path

Is-life-insurance-a-good-career-path

Developing a career needs two things: time and consistency. So, when we devote our time to something important, we must be certain about it.

Life insurance is a good career path for hardworking and skillful professionals. Choosing a life insurance career can be rewarding.

However, you need to be sure it’s a good career fit for you before venturing into it. The perks can be as enticing as the challenges can be overwhelming.

So before making a life career choice, let’s help you answer many questions regarding the life insurance career path.

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What is Life Insurance?

Life insurance is a contract between an individual and an insurance company. Essentially, the individual makes premium payments in exchange that the insurance company will pay a lump sum known as a death benefit to your beneficiaries after your death.

As a graduate, you can build a career path in a life insurance company as an agent. Or sales representative.

Examples Of Life Insurance

If you work in the insurance industry, there are different kinds of life insurance to suit people’s different needs.

  • Term life insurance
  • Whole life insurance
  • Universal life insurance
  • Final expense insurance
  • Simplified issue and guaranteed issue insurance.
  • Group life insurance

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Is Life Insurance A Good Career Path?

Yes, life insurance is a good career path for many professionals interested in affecting people’s lives positively.

In addition, the life insurance industry is one of the growing segments of the financial services industry.

Therefore, you can carve a niche for yourself. And make a good career path. However, this all depends on whether you’re well suited to thrive as a life insurance agent, actuary, or underwriter.

Some of the factors that make life insurance a good career path include easy entry-level jobs, diverse work opportunities, no fixed income snd, flexible work schedule.

Having said that, let’s look at some of these factors that make life insurance a good career path in detail under the following benefits.

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What are the Benefits of Life Insurance?

Easy Entry Level Opportunities

Getting entry-level jobs in life insurance is like ABC. Most companies wouldn’t ask for prior experience.

So, what plays out here is your potential and negotiation skills. And those two can land you a job of your choice. From there, you can create a good career path for yourself.

Diverse Work Opportunities

There are many work opportunities in the life insurance industry. For instance, you can work as a Sales Manager, Advertising Sales Agent, or Financial Manager.

Also, you can work in Securities, Commodities, or as a Financial Services Sales Agent. However, think about what you’ll love to spend your day on. If any of these appeals to you, then it can be a good career path for you.

Unlimited Earning

Most life insurance jobs are not a 5 to 9 career with fixed monthly payments. In other words, there are no bounds to how much you can earn.

For example, sales representatives paid commissions from selling insurance. As a result, you don’t have to worry about low pay.

However, your skills will help in raking more cash into your pocket. Certainly, your extra earnings will solely depend on your personal skills. Also, you need to have the ability to find out or convince the right client.

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Flexible Work Schedule

 A flexible work schedule can help you find balance and have a fulfilling life. So, another reason to choose a career path in life insurance is that it offers you flexibility.

Just like we mentioned earlier, life insurance is not a 9-to-5 job. So, you can work according to your own preference.

In addition, you get to meet new people every day.

Job Security

Insurance is here to stay. As long as people need medical health, drive cars, own homes, and run businesses.

So, in insurance, there is security involved with every role you choose to work in.

Making a Difference in People’s Lives

If you work in the life insurance industry, you’ll make money. But that’s not all. You also have the opportunity to meet new people and also change lives. Think of all the benefits people get from insurance.

Therefore, with insurance, you build a lasting bond of trust between your clients and the company. This is a trust that stays lifelong and stands by the side during rainy days.

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Develop Skills

The insurance industry has also adopted technology to meet customer needs. For instance, the use of social media and other technologies is now rampant.

Therefore, companies are employing people with social and digital media marketing skills. Hence, you can build a good career path in insurance by developing both sales and technical skills.

This is because some customers will be hard to impress. Certainly, you’ll receive a no sometimes. However, if you love this career path, challenges will make you get better.

Travel Opportunities

Life insurance offers one of the best jobs that require travel and pay well. So, if you love traveling across the country, and seeing new places, then you might love this job.

It’s time to get off the cubicle and away from staring at computer screens. In the end, hard work and your skillset will rake in lots of perks.

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Bonus: How to Succeed in Life Insurance Industry

First, research and research! There are no two ways about it. There are many companies and products in the life insurance industry.

It would pay off to get a feel for these products, companies, and market conditions in your community. You can’t afford to jump in blindly.

In addition, it is important to get a feel for persons each product can solve a problem.

Secondly, be flexible. Life insurance is a travel job. hence, you’ll need to have a flexible work schedule and travel plans.

Next, be prepared for challenges. If there’s a niche where the saying nothing good comes easy’ has proved to be true, it’s in the insurance industry.

Finally, in terms of qualification, most life insurance employers require agents to have a high school diploma, however many agents have a bachelor’s degree.

In addition, Life Insurance Agents must be licensed in the states where they work according to the bureau of labor statistics.

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What are the Job Prospects for Life Insurance?

The U.S. Bureau of Labor Statistics projects employment of insurance sales agents to grow by 7% from 2020 to 2030. This is about as fast as the average for all occupations.

Also, about 50,400 openings for insurance sales agents are projected each year, on average, over the decade.

The BLS also projects that many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

Further, Forbe’s report says life insurance recorded high sales growth levels in 2021. Specifically, life insurance sales growth increased by 18% during the first three quarters of 2021.

As a result, Forbes projected that 2022 could be another banner year for life insurance.

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How Much Can You Make From Life Insurance?

The annual salaries of life insurance can be as high as $148,000 and as low as $21,500 according to ZipRecruiter.

The majority of life insurance agents’ salaries currently range between $58,000 (25th percentile) to $100,000 (75th percentile).

However, top earners (90th percentile) make $120,000 annually across the United States.

7 Highly Paid Life Insurance Career Paths for Graduates

1. Consulting Actuary

Average Salary: $142,111

A consulting actuary provides accounting and risk-assessment advice to clients. As a consulting actuary, you’ll also calculate the profitability of different kinds of life insurance policies. Further, you can work with a consulting agency or as a freelancer.

Learn more about Consulting Actuary

2. Life Insurance

Average Salary: $111,030

A life insurance actuary helps determine the cost of life insurance policies to minimize cost and risk to insurance companies.

As a life insurance actuary, you’ll engage in risk assessment, and create reports for sales, and management teams.

In addition, you need to have problem-solving and communication skills. Also, you’ll need a bachelor’s degree in mathematics, actuarial science, or a related field.

Further, getting a professional actuary certification will help boost your chances in the profession.

3. Final Expanse Agent

Average Salary: $106,428

A final expanse agent sells life insurance products, such as death benefits. Such life insurance products cover the legal, funeral, and immediate household expenses of a deceased.

Read more about a final expanse agent: salary and duties.

4. Claims Director

Average Salary: $104,189

A claims director helps protect their employers from insurance fraud. As a claims director, you’ll oversee insurance claims processing departments.

Also, you’ll serve as a bridge between claims adjusters, service providers, and other parties involved.

Claims consultants work closely with management, legal teams, and clients.  So collaborative investigation experience is essential. Also, you might need to get a degree in forensic accounting or a related field.

5. Underwriting Manager

Average Salary: $103,194

An underwriting manager oversees the daily operations and administrative tasks of the underwriting department.

As the underwriting manager, your duties are to ensure that your team meets its goals and understands the objectives of the office. You may also perform customer service functions on behalf of the department.

6. Actuary Analyst

Average salary: $82,194

An actuary analyst analyzes the risks for life insurance companies. In other words, you’ll calculate the risks for events like incidents, injuries, product failures, and deaths.

Click here to read more about an actuary analyst: salary and duties

7. Life Insurance Agent

Average Salary: $79,730

A life insurance agent sells life insurance products and services. Other roles of a life insurance agent include responding to inquiries, providing rate estimates to clients, and pitching life insurance policies. Further, you’ll earn commissions in addition to your base salary.

FAQs

What career in insurance makes the most money?

Actuary: $161,759
Insurance Claims Adjusters: $114,976
Insurance Underwriter: $108,957
Risk Analyst: $104,421
Financial Analyst: $103,204

How do I succeed in life insurance industry?

First, research and research! There are no two ways about it. There are many companies and products in the life insurance industry.

Next, get a feel for these products, companies, and market conditions in your community. You can’t afford to jump in blindly.

Why do insurance agents quit?

Research said 26.2% voted a lack of money for leads as their primary reason why they quit. Less important reasons agents quit selling insurance include running out of prospects, personal issues like health problems, and discovering the business wasn’t a right fit.

What is the best position in insurance?

  • Consulting Actuary: $142,111
  • Life Insurance: $111,030
  • Final Expanse Agent: $106,428
  • Claims Director: $104,189
  • Underwriting Manager: $103,194
  • Actuary Analyst: $82,194

Conclusion

Every career path has its pros and cons and life insurance is no different. Some of the perks of working in life insurance are flexible working conditions, unlimited earning ability, and diverse work opportunities.

However, to be successful in this sector, you must be detail-oriented in order to understand the details of the insurance business, be able to give exceptional customer service, and have a strong understanding of marketing, sales, and/or finances, depending on the jobs you choose.


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