How to Become a Life Insurance Broker

A life insurance representative who offers life products from many companies is a life insurance broker. Brokers do the same job as other life insurance agents but have more products from which to select. If the broker is looking for a specific product, he simply calls or emails a company that carries the product and gets the paperwork for that company to hold his license so he has access to sell the product. Brokers may work out of their home and sell life insurance at appointments in the client's house or have an office.

Things You'll Need

• Application for state license
• Contracts with companies to write products

Instructions

1. Check out the pretest requirements for your state. Not all states require you to have any classroom hours before you test, but some do have that requirement. If your state requires classroom hours, you normally have the option of taking the hours online or in a regular classroom. Check out your state's requirements at its website. All state's department of insurance websites are located at NIPR.com, which handles the paperwork for many states (see Resources).

2. Schedule your examination once you finish your study. You'll need to study for the insurance exam whether your state requires pretest study or not. The exam includes a section on products and one on life insurance law. Take your certificate of completion with you to the exam if your state requires preliminary study hours. You won't get to sit for the exam if you don't have it.

3. Pass your state exam with a 70 percent or higher in most states. You then need to fill out the paperwork for licensing. The state licensing paperwork your personal information that includes previous positions, addresses, financial history and criminal history. Most states require a fingerprint card for a background check. All states have a fee, and some accept credit card payment.

4. Choose a plan of action. You probably already know the market you want to sell, but you should narrow it to specifics to help you select companies and products. You'll also need a business plan for your road map to success. The amount of time you want to spend selling and prospecting is often directly proportional to your success.

5. Hunt for companies with products you'd like to sell. Contact these companies by phone or online for information and an application to license with them. The application asks for a lot of background information, but, normally, it's the same information you submitted for the state license. They also require a copy of your state license. Because most states no longer send you a paper copy, print several from the online site for this purpose.

6. Start marketing to those you selected. Advertise either by mail, in person or by phone. If you call individuals, be aware of the National Do Not Call Registry list and don't breech it. Have business cards made, and, if you market to businesses, cold call, leave a card, get the decision maker's business card and call for an appointment later. Most business people don't appreciate an interruption in their day from an unscheduled visitor.

7. Ask for referrals once you make the sale. Referrals and repeat business is the life blood of many brokers. While not every referral wants your services, you have an introduction, via the referral, to those that want or need life insurance. It makes your job easier.

Resources

• NIPR