How to Start a Health & Life Insurance Agency
With the right training and resources, you will be able to start your own health or life insurance agency. It is not necessarily the case that starting your own insurance company takes years of planning and requires millions of dollars in capital. As long as you plan carefully, obtain the proper licenses, and raise the necessary funds, owning your own insurance company may not be as hard as you think.
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Things You'll Need
- Capital
- Health or Life Insurance License
- Corporate Insurance License
- Business Plan
- Business License
Instructions
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Starting your Health or Life Insurance Company
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1
Become a licensed insurance agent. To do this you must take health or life insurance training and then pass the appropriate state examinations.
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To start selling health or life insurance on your own, the law requires that you have at least five years of experience working as a health or life insurance agent. Either get a job selling insurance for an established insurance business in your area or become an independent insurance contractor, working for an established insurance company but setting your own hours and working from your own location.
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3
Purchase a corporate insurance license. This will give you the ability to sell insurance-type products under your own company's name and business license. The cost of a corporate insurance license will depend on the exact type of insurance you want to sell and what state you live in.
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4
After you have received all the specific licensing, you will then need to obtain a business license from your state office. Such a license ensures that you meet the legal requirements to conduct transactions in your state and holds you responsible for any taxes incurred. A business license is not hard to obtain, and costs anywhere from $50 to $100.
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Acquire the necessary funding. Starting your own health or life insurance company can be very expensive, costing anywhere from $100,000 to $1 million. Consider a small-business loan or a business investor/partner to secure the capital necessary to get your business up and running.
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