Career Outlook for Life Insurance Agents in 2022 Looks Promising

The COVID-19 pandemic proved to be a catalyst for increasing consumer awareness of the importance of having life insurance. In fact, according to CNBC, many life insurance firms experienced double-digit increases in the number of life insurance policies they have sold during the pandemic compared to the previous year. Given that the core purpose of life insurance is to provide financial security for survivors in the event of death, it makes sense that there was a bit of urgency to purchase life insurance once the pandemic began.

Putting COVID-19 life insurance panic buying aside, the outlook for careers in life insurance remains strong. According to the U.S. Bureau of Labor Statistics, the average growth rate for an occupation as an insurance sales agent is 8% — a number that is expected to steadily increase until 2030. However, growth in careers for agents selling life, health and long-term care insurance is expected to hit double digits due to the growing number of aging Americans, according to an industry update by Kaplan Financial Education.  

Another attractive benefit of a career selling life insurance is the salary. According to ZipRecruiter, as of Sept. 21, the average annual pay for a life insurance agent in the U.S. is $79,730 a year. However, ZipRecruiter reports seeing annual salaries as high as $174,000 and as low as $20,000 — with the majority of life insurance agent salaries ranging between $50,000 and $99,500. The career-finding website also notes that based on a person’s skill level and years of experience, the industry holds many more opportunities for advancement and increased pay.

Location also plays a big part in the salary of a life insurance agent. Currently, the top 10 cities where the salary of a life insurance agent is above the national average are:

1 – San Francisco, California ($97,877)

2 – Fremont, California ($93,957)

3 – San Jose, California ($91,777)

4 – Oakland, California ($90,774)

5 – Tanaina, Alaska ($90,520)

6 – Wasilla, Alaska ($90,519)

7 – Sunnyvale, California ($89,395)

8 – Hayward, California ($88,872)

9 – Jackson, Wyoming ($88,398)

10 – Norwalk, Connecticut ($88,278)

Unlike property and casualty insurance, life insurance can be a hard sell. However, once a policy is sold and issued, the commission payments keep coming in the form of renewals for as long as the policy remains in force. And while the commission percentage drops a bit after the first year (typically around 5% to 10% on the policy’s anniversary date), this passive income accrues automatically without the agent having to solicit a renewal.

Despite the growing need, there are fewer life insurance agents today compared to in previous generations. Not only have more opportunities opened up, but because of the need, a greater number of companies/agencies also are considering training new hires who don’t have any insurance background at all. According to Investopedia, “There might not be any sign in the window, but the agencies are hiring and will most likely consider [a candidate] regardless of what line of work [he or she was] in before.”

Conclusion

Every September during Life Insurance Awareness Month, the insurance industry focuses on promoting the importance of life insurance. If you are a life insurance professional or are considering a career in life insurance sales, we hope this article provided some insight into a very rewarding occupation. 

About FastrackCE

The process of becoming an insurance agent requires passing pre-licensing exams. You’ll also need to complete a certain number of continuing education credits every few years to maintain your license; the exact number depends on the state you live in.

When you’re ready, FastrackCE can save you time and money by helping you get all your life, health and long-term care continuing education credits in one place and on your schedule. We also offer a wide range of property and casualty continuing education courses, including most of the state-mandated courses, such as ethics and flood and annuity insurance training. For more information, call 800-544-3605 or visit us at fastrackce.com.

This entry was posted in Insurance, News & Events and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *