Business Overview

A life insurance brokerage meets with current and prospective clients to determine their life insurance demands. They then work with various insurance companies to identify the policy type that best meets the customer’s coverage and financial needs.

Who is this business right for?

While owning a life insurance agency can prove to be quite profitable, those realizing the greatest success enter this field because they truly enjoy helping others. Industry leaders believe in the products they “sell” and are passionate about educating others on the subject.

What happens during a typical day at a life insurance brokerage?

In the insurance industry, no two days are alike and every day offers an opportunity to learn and grow. Your day-to-day tasks include:

  • Meet with clients to determine their unique needs and educate them on life insurance.
  • Assist clients in filling out paperwork.
  • Guide customers through the death claim process.
  • Service your current book of business.
  • Market to your target audience and networking within the community.
  • Research current trends and remain abreast of industry news. (Continuing education is critical in this field.)
  • Work to gain appointments with insurance companies you wish to represent.
  • Handle other administrative duties

The bulk of an agent’s day is spent building and maintaining relationships with both insurance representatives and clients.

What is the target market?

There are a variety of reasons for purchasing life insurance that go beyond paying a death benefit when the insured dies. Get to know the products you sell on a deeper level. Once you’ve gained a clear understanding, identifying the target market will come naturally.

Life insurance products typically appeal to a diverse customer base.

How does a life insurance brokerage make money?

Your brokerage will generate revenue for each policy sold. Upon initial application acceptance, the writing agent receives a commission check for a percentage of the total policy premium. You can also expect to receive a smaller commission for every time a customer renews his or her insurance policy.

What is the growth potential for a life insurance brokerage?

The insurance industry is widely considered a recession proof profession. While life insurance is more vulnerable than other lines of business, today’s consumers are more financially savvy, recognizing the financial need/benefits behind owning life insurance. Your agency’s growth is only limited by your insurance knowledge, willingness to take risks, and drive for success.