25+ Pros and Cons of Being An Insurance Agent (Explained)

An insurance agent is a person or organization who solicits, negotiates, or instigates insurance contracts on behalf of an insurer and can be independent or an employee of the insurer.

An important aspect of working as an agent is that he sells insurance products for one company only. The insurance agent receives a salary paid by the insurance company and sales-based commission.

Advantages of being an Insurance Agent	Disadvantages of being an Insurance Agent
Starts at early age	Stress and pressure to sell
Own Boss	Changing regulations
Stable Income and Growth	Wrong selling
Flexible Work Timings	Not have a high social standing
Make a Difference	Low job prospects
Rewards & Recognition	It May become boring in the long run
Can avoid working at nighttime	People can be difficult
Can avoid physical work	Mandatory educational requirement

Advantages of being an Insurance Agent

Starts at an early age

Most insurance agents can start early. They need to have completed only exams mandated by IRDA and they just need to complete graduation, while some professions require Masters.

It requires the minimum capital investment or experience, instead, one just needs soft skills like persuasion, follow up and dedication.

Own Boss

While working as an insurance agent, one can work as per their schedule and also develop their own system for attracting and developing clients.

The more one invests their time and resources, the more returns one can expect to get. Thus, our own efforts will result in better income. Further, he will be answerable to only himself. He will be planning his own schedule.

Stable Income and Growth

The insurance industry offers huge earning potential. Under-served insurance markets have this opportunity of earning with a little more effort. Once one sells the policy, the earning doesn’t restrict to the first year only.

He will earn on the policy renewal as well, which can easily go up to 30 years. Commission from renewal is of a significant amount and is almost stable.

Flexible Work Timings

Many office jobs require their employees to be at their desks at 9 am in the morning and must sit through the day till 6 pm. In turn, insurance agents have flexible working timings.

As an insurance agent, one can choose to work as per their convenience or also establish their own office away from home. Though his dedication will directly affect his income, he can plan efficiently.

Make a Difference

The insurance industry offers a golden opportunity to make a difference in people’s lives and society. Insurance is that economic instrument that saves families and businesses from falling into the vicious cycle of poverty.

An insurance agent can change lives, and this feeling itself is greatly satisfying and keeps you in high spirits.

Insurance agents are rewarded as their work helps people to build assets, take care of child education, transfer wealth from one generation to the next, plan for retirement, and much more.

Rewards & Recognition

One gets an opportunity to experience various national & international recognition forums as an insurance agent. Though qualifying for awards could be rigorous but can also project the agent on the larger stage.

Most insurance companies have developed a system of rewards and recognition to boost the morale of insurance agents.

It also lures them to put more effort into achieving higher sales. While commission earnings are always there, these awards and recognitions are a cherry on the cake.

Schedule

An insurance agent gets a great deal of flexibility on the hours that he puts in. Moreover, many clients are only available in the evenings or on weekends. One can accordingly plan their work hours depending on when potential clients are available.

Can avoid working at nighttime

An advantage of being an insurance agent is that one also does not have to work at night time. One will just work their normal 9 to 5 job most of the time and will have free evenings.

Moreover, sleeping problems are quite common for people who have to work late at night. Those people often suffer from serious health issues since good sleep is crucial for our body and our brain to stay healthy in the long run.

Can avoid physical work

Working as an insurance agent one avoids the heavy physical work many people in other jobs have to do. They do not need to lift weight or do other physical work. They use soft skills for influencing their clients. Physical work can take a toll on the body.

Disadvantages of being an Insurance Agent

Stress and pressure to sell

There will be a certain level of stress and pressure to sell that comes with the job. If one is unable to meet the sales target, his commissions will take a hit.

Most companies fire the sales staff or end the contract if a person repeatedly fails to achieve a target. It is one of the most stressful jobs in comparison to other professions. There is huge peer pressure.

Changing regulations

The government and insurance regulators have laid out a list of regulations in the industry. To ensure that one is providing the best possible service to his clients, he needs to stay on top of the updates related to the sector.

With inputs received from industry giants, insurance agents, or customers, government agencies regularly make or amend new regulations. As it pertains to legality, one must do compliance.

Wrong selling

Insurance agents often have to sell insurance products not suited to prospective customers.

Many insurance agents are not independent and will have to sell the products that are most lucrative for the companies they work for. Many agents have greed for better commission and sell incorrect products.

Not have a high social standing

People mistrust insurance agents as they have had bad experiences with them in the past.

Therefore, insurance agents don’t have a high social standing and may also get many snarky comments. Also due to regular pitching, most relatives, friends, and neighbors look down on them.

Low job prospects

The competition in the industry is quite tough. If one does not identify the edge he has over other agents, his approach may be completely wrong. In our current state of the world, the job market changes rather quickly and it is also questionable whether insurance agents will still be needed in the future.

May become boring in the long run

Though it is exciting to work as an insurance agent, in the beginning, this initial excitement may vanish rather quickly. In the long run, one becomes pretty bored with what they are doing and many insurance agents secretly wish to work in a different field instead.

People can be difficult

A disadvantage of becoming an insurance agent is that he will have to deal with many difficult people. Though some clients may be nice, most are really annoying. Some clients, if they feel cheated, may sue or physically assault the insurance agents.

Mandatory educational requirement

Most insurance companies require at least a bachelor’s degree. The big insurance companies are more eager to employ people who hold a degree. Government agencies have mandated a clear examination.