Some of the best careers and highest-paying positions in the world are available in the life insurance sector. There are many ways to get a good job in the life insurance industry, from being an agent to being an underwriter.
This post will outline 10 jobs available in the life insurance industry if you are interested in this field. as well as if life insurance is a good career path for one to pursue and what types of life insurance there are.
What is life insurance?
Life insurance provides financial security for loved ones, should you die. Your children or partner will be taken care of financially. Once a policy has been granted, insurance cannot revoke it based on a change in the policyholder’s health status. When purchasing it, one should consider several factors, including the kind of policy they want, when they need it, and how to buy it.
There are several forms of life insurance, so customers can select a plan that suits their unique needs.
The different types of life insurance are:
Term life:
- Policy length: Common-level term periods include 5, 10, 15, 20, or 30 years
- Cash value: No
- Premiums: Level, annual renewable or decreasing
- Death benefit: Fixed
A term life insurance policy is bought to last for a fixed amount of time, such as one, five, ten, or occasionally even thirty years. The name of the policy refers to the fact that coverage expires at the end of the period, so a payout is only made in the event of the insured’s passing during that time. Renewal of coverage may be an option if the insured person lives past the initial policy period, however, the rates might be higher.
Related: 15 Best Insurance Certifications Programs
Whole Life Insurance:
- Policy length: Permanent
- Cash value: Yes
- Premiums: Level
- Death benefit: Fixed
Whole life insurance or cash value Life insurance protects the insured for life as long as the premiums are paid on time. Unlike term life insurance, these plans can build up a cash value that the policyholder or their heirs can use in certain situations. As a result, premiums may be higher than for term life insurance.
Universal Life Insurance
- Policy length: Permanent
- Cash value: Yes
- Premiums: Might be flexible
- Death benefit: Might be flexible
Universal life insurance allows you to choose the amount you contribute to premiums. The difference is taken from the cash value of your coverage if you lower your premium payment. If you want some flexibility in your life insurance and can afford it, a universal life insurance policy might be a good fit for you. A standard whole life insurance policy costs less and is easier to understand than a universal policy.
Variable life insurance:
- Policy length: Permanent
- Cash value: Yes
- Premiums: Level
- Death benefit: Might fluctuate
Bonds and mutual funds are some examples of investments that are linked to the cash value of variable life insurance. Regardless of how the market performs, variable life insurance premiums are typically fixed, and the death benefit is guaranteed. A fee-only financial advisor, or a planner who doesn’t receive commissions from product sales, can help you choose the best policy if you’re thinking about getting one like this.
Is life insurance a good career path?
People choose this line of work for a variety of reasons, including its financial benefits, their love of data and finance, and the chance to help people during challenging moments of their lives.
The average annual salary for a life insurance job in the US is $98,888 a year. The employment of life insurance sales agents is anticipated to increase by 70% between 2020 and 2030, adding 50,400 new positions each year.
The good thing about this field is that there are a lot of good-paying jobs in it that will help you move up in your career. This field offers a variety of positions in many industries. And these positions allow you to work from home.
With thousands of jobs available in the life insurance industry, the number is expected to rise over the coming years. As a result of the need to sell insurance, every business strives to hire more employees. More employees will result in more clients, and the growth of the business is directly correlated with this.
The job security that a career in life insurance provides is one of its biggest benefits. There is a possibility of making a good living. The sales positions in particular can be very lucrative. If you work in life insurance, you’re in charge of your own work hours, which could give you more freedom. You can choose a schedule suitable for you. Insurance in general makes it relatively simple to expand an agency with a six-figure salary.
10 Highest payings jobs available in life insurance
1. Risk Management Analyst:
A risk management analyst is in charge of gathering information on the placement of insurance, underwriting, compliance, and loss forecasting while comparing the amount of risk the company has taken on to the amount it can safely take based on the data that has been obtained.
They also make suggestions to assist the business in keeping a safe balance of risk to safeguard its assets.
2. Insurance underwriter:
Insurance underwriters use actuarial, statistical, and background data to evaluate risk in insurance proposals, set policy conditions, and figure out premiums.
3. Senior financial analyst:
Senior financial analysts usually have at least an MBA and are at the top of their field. They have to give life insurance companies a review of these operations and projects to make sure they are making good financial decisions.
4. Customer service representatives:
Just like any other business, life insurance companies require customer service professionals to speak with customers.
Customer service representative assigns clients to sign all kinds of inquiries directed at the company, from technical issues to concerns about how to submit a claim, while presenting a positive image of the company
5. Life insurance sales agent:
A life insurance sales agent is a professional salesperson with a focus on selling life insurance to individuals. They are in charge of calling prospective customers to add leads to their book of business, close sales, meet with clients, and explain the different types of life insurance that are available.
6. Insurance appraiser:
Insurance appraisers choose whether an insurance company should pay a claim and how much it should be. If they believe someone is engaging in insurance fraud, they must also report any false claims to investigators.
7. Insurance broker:
They work in risk management, where they tell clients about possible dangers and insurance plans that can help lower those dangers. An insurance broker is a person who identifies the best insurance plan for a potential customer but is not partnered with an insurance provider
8. Actuary:
Actuaries assess the monetary cost of risks for various businesses. To calculate the risk potential of events, they make use of statistics, mathematics, and financial theory.
9. Insurance claims clerk:
An insurance claims clerk checks insurance claim paperwork and forms for authenticity and completeness. Their goal is to come to a deal with an insurance company that will give them the money they need to pay.
10. Insurance Manager:
An insurance manager makes sure that all company policies are followed. This includes the vast majority of commission-based and independent life insurance positions. This means you work your own leads, whether they come from a lead vendor or your upline. Ranch personnel are all subject to an insurance manager’s supervision.
Conclusion
In a life insurance company, you can either be the business owner or work for the agency. Most life insurance jobs are commission-based and independent, which means you work your own leads that you get from a lead vendor or your upline. You then earn commissions on sales.
If this is the career path for you, you must first verify the kind of company you are applying to and look into things like employment security and income. However, there are several factors besides the salary that can affect your choice, so you need to be aware of them all.