How to Open a Senior Benefits Insurance Agency
According to Senior Market Advisor, by 2030, 20 percent of the United States population will be made up of senior citizens. Opening an insurance agency that focuses on seniors is an opportunity to serve this growing population and make a good living for yourself. Previous experience in insurance sales is helpful in this endeavor, as is formulating a business plan and making certain you have the saving you need to get you through the rough start-up period.
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Things You'll Need
- Savings for six months to one year of living expenses
- Contact information for local banks and credit unions
- Insurance license
- Office space
- Computer with internet access
Instructions
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Decide what type or types of insurance you want to specialize in. There are separate licenses for life and health and property and casualty insurance. If you haven't already, obtain the appropriate licenses in your field. Information on pre-licensing requirements and exams is available on your state's department of insurance web site.
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Write a business plan. Decide whether you want to be an independent agent, who works with multiple companies, or a captive agent, who offers products from one company. Being independent gives you the ability to specialize in a specific product tailored for seniors, like long-term care insurance. Being a captive agent provides brand recognition and a defined business plan and training track.
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Decide how your financing starting your senior benefits agency. Apply for small business loans, if needed. The U.S. Small Business Administration has information on what types of loans and grants are available. The amount of start-up money you need depends on what space you're renting, what additional help you're hiring and the cost of advertising your business and generating your initial leads. If you work with an established company, the costs of opening a branch varies. Farmers' Insurance, for example, has a minimum capital investment of $5,000.
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Advertise your business and generate leads. Seminars, letters and old-fashioned door knocking are just a few ways to reach seniors. Many seniors are also web-savvy, so developing an online presence, including a web site and Facebook page, is also important. Networking events and social groups can also be a good way to meet potential senior clients.
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Tips & Warnings
Your local Chamber of Commerce can be an invaluable resource for networking and training.
Keep careful track of your receipts; you'll need them to write off expenses on your tax return.
