THINKING ABOUT BECOMING AN INSURANCE AGENT? HERE’S WHAT YOU NEED TO KNOW BEFORE YOU TAKE THE EXAM
Hi, I’m Diana. I’ve been an insurance agent for about 6 years now, and I have been helping people pass the insurance exam for 4. In that time, I have helped 1000s of people pass the insurance exam — thousands of insurance agents who now work for many companies and who have started their own insurance agencies.
So if you are looking for help passing your insurance exam, you’ve found it. I am here to help you do just that. If you’re Googling questions like these…
What exactly does an insurance agent do?
Do insurance agents make money?
Do I need a license to sell insurance?
Is insurance agent a good career?
Why do most insurance agents quit?
Let’s talk about it so you can go into this career knowing exactly what you are getting yourself into.
WHAT EXACTLY DOES AN
INSURANCE AGENT DO?
This is an easy question to answer — an insurance agent sells insurance.
I know that’s not what you want to hear, and that is because you are asking the wrong question! What you should be asking is, how does an insurance agent do what they do? That is what you actually need to know, because let’s face it, you already know insurance agents sell insurance.
Now I could give you the longer answer, which is that an insurance agent helps individuals and families protect their income, health, homes, and businesses through selling different insurance products, but that’s not what you need to know either.
So let’s talk about what you really need to know — not the what, but the how. The 1st step is to get your insurance license. There is no way around this one. Once you get your insurance license, you will become contracted with an insurance carrier, and through their training process, they will help you learn the rest. But we will focus on the first step now.
So the real question you should be asking is
HOW DO I PASS THE INSURANCE EXAM ON THE FIRST TRY?
You pass the insurance exam on the first try by studying the correct way, which does not mean just reading the book over and over, studying 10,000 practice questions, or mindlessly watching a ton of videos or taking notes that won’t actually help you in any way toward accomplishing your goal.
What you need to do to pass your insurance exam is study the correct way with the right study materials that will give you the actual information you need to pass the exam without the extra fluff and confusing terminology.
What you need is:
-To understand the test structure
-To understand your learning style
-A study technique or 2 to help you break down the information and make it easy to understand
-A game plan to help you study in a productive way
-Clear explanations for all necessary terminology
-A clear and simple step-by-step guide to help you reach your goal
And that is exactly what I give my students in all of my study resources. I don’t over-explain concepts. I don’t give you extra materials and information you won’t need. I don’t give you extra BS to overwhelm you.
I GIVE YOU WHAT YOU NEED TO PASS THE INSURANCE EXAM, whether this is your 1st time taking the exam or YOUR LAST TIME taking the exam.
CHECK OUT MY STUDY RESOURCES HERE:
And if you want to know which one I think is the best one that I’ve seen 100s of people use to pass the exam, it would be my Graduation Bundle. You can find it here
If you need extra support, you can also join my class or book 1-on-1 tutoring so we can go over your weak areas together at https://bit.ly/insurancetutoring
Let’s make sure you are ready for test day without the confusion, extra noise, and doubts. I’ve got you, and if you’re ready, let’s do it!
DO INSURANCE AGENTS MAKE MONEY?
YES!
Insurance agents make money through commissions. That means the more policies you write, the more you earn. Many policies also pay renewal commissions, which means you can continue getting paid year after year if it’s offered by the carrier you choose.
And again, you are asking the wrong question! The question you should be asking is:
WHAT IS THE INCOME OF AN INSURANCE AGENT?
-OR-
HOW MUCH MONEY CAN I MAKE AS AN INSURANCE AGENT?
Insurance agent pay depends on their commission level. If you have a good commission level, then you can easily make $3,000–$5,000 a month, maybe even more, by just selling a few policies a month. Let’s break the math down so you see the real potential in this opportunity.
Now, I personally consider a good commission anything starting at 70% or above. If you are considering working with a company that starts you off at a lower commission rate, I would keep doing some research because there are companies who will start you at 70% as a beginning agent.
Let’s say that you sell a policy of $100 a month. This is the monthly premium. The company you work with will then take the monthly premium and multiply it by 12 (12 months) to get your annual premium. The total you will get paid for that policy depends on the commission level you are at with your company.
Example:
$100 x 12 = $1,200 Annual Premium at 70% total pay is $840
$100 x 12 = $1,200 Annual Premium at 50% total pay is $600
$100 x 12 = $1,200 Annual Premium at 25% total pay is $300
So depending on your commission level will determine your actual income, but if you work at it, you could potentially make $3,000–$5,000 a month with about 5–7 policies if you have a good commission level.
Now that we’ve covered that question, you should be asking yourself:
DO I NEED A LICENSE TO SELL INSURANCE?
Yes. If you want to sell insurance, you must pass the state licensing exam and apply for your license. There are no shortcuts to be taken here. While the process may vary slightly from state to state, the requirements are the same in all 50 states.
You must pass the insurance exam, pass a clean background check (which is done by the state), and apply for your license. This is the process, and it can take you anywhere from 2–4 weeks to complete. Sometimes it could take longer, but please don’t get stuck in that trap. If you need help studying so you can get your license quickly, check out my resources or reach out for help.
DO AGENTS NEED A COLLEGE DEGREE?
No. You do not need a college degree to become a licensed insurance agent. All you need is to pass the insurance exam as I’ve discussed above. Other than that, you do not need any formal training or education to become an insurance agent.
IS INSURANCE AGENT A GOOD CAREER?
While this is an opinion, I believe that being an insurance agent is an excellent career choice! This is one of the few careers that offers true freedom and growth that many seek in their careers, and for those reasons, I believe this is a good career.
As an insurance agent, you can set your own work schedule. You can easily schedule meetings and work hours around your life — whether that is your children, another job, or other obligations. Being an insurance agent allows you this freedom, and many more benefits.
Unlimited income potential is another perk of being an insurance agent because you are your own boss and no one is dictating to you what you must or must not make (unless you happen to work for a company with a quota, then you have a minimum number of sales you must make). There is no maximum, which means there is no maximum limit to how much money you can make.
For these two reasons, it is my opinion that yes, being an insurance agent is a good career. But there are those out there who disagree with me, and that is fine because everyone is entitled to their opinion. So let’s talk about another question I get asked sometimes.
WHY DO MOST INSURANCE AGENTS
QUIT OR FAIL?
I truly believe insurance can be a great career — but I also understand why some people disagree. The truth is, many agents quit not because insurance “doesn’t work,” but because they come in unprepared.
They underestimate the licensing exam, don’t fully understand how commissions work, expect instant results, or join an agency without proper training and structure. It can feel overwhelming in the beginning if you don’t know what to focus on.
But here’s the positive side: the agents who take the time to learn the material properly, pass the exam confidently, and treat this like a real business are the ones who build stable, long-term income.
If you’re serious about doing this the right way, your first step is passing the exam with confidence. Like I mentioned before, I am here to help you do just that.
That is why I’ve created structured study resources to help you do exactly that. Access the full Insurance Exam Study Bundle here: https://bit.ly/Insuranceexamresources and take the first real step toward becoming a licensed agent the right way.