Carve Your Way into a Lucrative Insurance Career

Contemplating a transition into the insurance realm or actively job-hunting in this sector? This guide from Slater All Lines Insurance School offers comprehensive, actionable insights that will propel your venture into the world of insurance. From exploring the alluring benefits to a step-by-step approach on becoming an independent agent, this resource covers all the essential facets you need to know.

The Lure of Insurance as a Profession

A career in insurance promises financial stability through competitive salaries and performance incentives, making it a lucrative choice for many. The industry also serves as a hub for personal development, offering various paths for skill enhancement and career advancement. Additionally, its resilience to economic fluctuations and the possibility for work-life balance add to its attractiveness as a career option.

The Edge of an LLC for Independent Agents

For those eyeing a career as an independent insurance agent, forming a Limited Liability Company (LLC) can offer a distinct competitive edge. An LLC not only provides protection for personal assets from business liabilities but also offers advantageous tax treatment of profits and losses. Additionally, LLCs generally involve less administrative complexity, making them easier and more cost-effective to operate, although state-specific regulations should be observed. If you aren’t sure how to get started, you can launch your own LLC through an affordable formation service that can make sure your paperwork is filed quickly and accurately.

Raising Your Profile

If you’re planning to embark on a career as an independent agent, developing a strong personal brand is crucial. In the digital age, a significant part of your branding will involve establishing a visible and influential online presence. Learning content marketing techniques, such as Search Engine Optimization (SEO) and keywording, is essential. These skills will help you create content that resonates with your target audience and improves your visibility in search engine results. 

Fortunately, there are numerous free online resources where you can learn these techniques. Websites, webinars, and online courses offer insights into how to effectively use SEO strategies and keywords to elevate your online profile. By mastering these skills, you can attract more clients, establish yourself as a knowledgeable professional in the insurance field, and differentiate yourself in a competitive market. Effective personal branding, backed by savvy content marketing, is a powerful tool for any independent insurance agent looking to grow their business.

Transitioning from Healthcare

The insurance industry has seen a growing trend of professionals transitioning from the healthcare sector, particularly nursing, to various roles within insurance. This shift is driven by the unique insights and skills that healthcare professionals bring to the table, especially in understanding complex medical issues and patient care. Nurses with higher credentials, such as a master’s degree in nursing, often find enhanced opportunities and increased earning potential in the insurance industry, particularly as consultants. They can provide valuable expertise in areas like health policy analysis, claims management, and client advice. 

Earning a nursing master’s degree from an accredited online university can be a smart move for those looking to make this transition. Online courses offer the flexibility to study at your own pace and convenience, which is particularly beneficial for working professionals. These courses not only equip nurses with advanced knowledge but also help them find out how to use this for better decision-making in insurance roles. This advanced education can be pivotal in navigating the complexities of the insurance industry and leveraging their healthcare background for a successful career change.

The Art of Employer Evaluation

Identifying a potential employer that aligns with your career aspirations requires a measured approach. Company research isn’t just about looking at financial stability but also includes understanding the organizational culture and opportunities for upward mobility. Utilizing platforms that offer employee reviews can give you an unfiltered view of the internal environment. Concurrently, pay attention to news about mergers, acquisitions, or expansions, as these may indicate a company’s trajectory and, subsequently, your growth prospects within the firm.

Your Resume: The Gateway to Opportunities

Creating a compelling resume is crucial for catching the eye of recruiters in the insurance sector. If you’re looking for some tips you can follow with ease, the internet is replete with options to take advantage of customizable templates that allow you to showcase your unique professional persona. By carefully choosing fonts, colors, and adding skills relevant to the insurance industry, you can enhance your resume’s impact and stand out from the multitude of applicants.

Accumulating Industry-Specific Experience

Gaining real-world experience is crucial for succeeding in the insurance industry. Internships offer a stepping stone, providing a hands-on introduction to the sector’s workings. Even roles that are peripheral to insurance – such as customer service positions in related sectors – can add valuable insights. Moreover, many firms offer training programs for entry-level positions, providing a direct pathway to learn the ropes and secure a more permanent spot.

Acquiring Skills That Matter

While insurance might appear as purely numbers-driven, a plethora of skills contribute to career success. Effective communication is vital, as explaining complex policies in understandable terms is part of the daily grind. Analytical skills are another must-have; understanding and interpreting data is crucial for risk assessment. Problem-solving aptitude is indispensable for claims adjustment, while a keen sense of ethics ensures transparency and trustworthiness.

Qualifications: Beyond the Basics

Though a bachelor’s degree is often adequate for entry-level positions, further education and certifications can substantially elevate your career. Licensing is generally obligatory and can range from life and health insurance to property and casualty. Additionally, several organizations offer specialized certifications that can significantly broaden your professional repertoire and marketability.

The Importance of Industry Networking

Building a robust network is pivotal for career growth. Whether it’s attending industry-specific events, participating in online forums, or leveraging professional social media platforms, effective networking can open doors to new opportunities. It’s not just about collecting business cards; it’s about cultivating relationships that can provide mentorship, partnerships, or even prospective clients.

Leaping into the insurance sector opens doors to an array of benefits and opportunities for advancement. From establishing an LLC to updating your resume, the steps and strategies highlighted in this guide pave the way for a fulfilling and prosperous career in this resilient and multifaceted industry. The path to a rewarding future in insurance is clear; all that’s left is for you to walk it!

Let the professionals at Slater All Lines Insurance School teach you what you need to know to pass the Washington State insurance exams. We offer instruction in all major lines of insurance, either self-study at your own pace or live lecture; both in person and audit via Zoom.

Right Here, Right Now: Securing the Best Location for Your Insurance Venture

As you embark on the exciting journey of establishing your insurance business, selecting the right location is pivotal to your success. Your choice goes beyond mere geography; it’s about positioning yourself in a competitive market, ensuring accessibility, and aligning with your brand’s ethos. Slater All Lines Insurance School explores the crucial considerations for choosing a spot that addresses logistical needs and propels your business toward long-term prosperity.

The Intersection of Visibility and Brand Identity

Imagine an office space that not only catches the eye of passersby but also resonates with your brand’s values. This is where the magic of brand alignment and visibility intertwines. A strategically chosen location enhances your professional image, making your business a landmark in the community. It’s less about being seen and more about being remembered and associated with reliability and professionalism.

Seamless Access: A Gateway to Customer Influx

Consider how clients and your team can reach you. A spot near bustling streets or transit hubs isn’t just a convenience; it’s a funnel for potential clients. Accessibility is a magnet for customer volume, transforming geographical advantage into business growth. Think of your location as a silent ambassador, welcoming clients and talent alike.

The Talent Oasis: Tapping Into Local Workforce Pools

Your insurance business’s success hinges significantly on your team’s strength and quality. When assessing potential locations, investigate the local job market to discover a pool of skilled professionals.

A location abundant with qualified candidates becomes a strategic asset in assembling a team that’s competent and passionate about your vision. This process is more than just staffing; it’s about cultivating a workforce that embodies your business’s ethos and driving spirit.

Navigating the Legal Landscape: Compliance and Zoning

Before committing to any location for your insurance business, it’s crucial to understand the local zoning laws and business regulations thoroughly. Familiarizing yourself with these legal aspects is more than a procedural step; it acts as a protective measure against possible future complications. Ensure that your chosen spot provides a legally compliant environment where your business can grow and thrive without any regulatory hindrances. This proactive approach is fundamental in laying a trouble-free path for your business’s future.

The Homefront: A Nest for Your Business

In this digital age, your home can serve as more than just a living space; it can transform into the command center of your insurance business. As you explore rental options, prioritize finding a space that balances comfort with professional functionality.

Utilize online resources like virtual tours and comprehensive listings to streamline your search for the ideal home office. This innovative approach significantly reduces overhead expenses and infuses a unique, personal charm into your business operations.

Crafting a Blueprint: The Role of a Solid Business Plan

Your location decision is a crucial component of a broader strategic framework, encapsulated in your business plan. This detailed document should outline your service offerings, marketing tactics, organizational hierarchy, funding requirements, and financial projections. By integrating your location decision within this comprehensive plan, you establish a strong, coherent foundation that guides every step of your entrepreneurial journey in the insurance industry.

Customer Centricity: Location Through Their Eyes

Gaining a deep understanding of your target market’s preferences is pivotal in choosing the right location for your insurance business. Aim to select a spot that resonates with the lifestyle and needs of your client base, prioritizing ease of access and convenience.

This strategic alignment enhances the customer experience and fosters stronger loyalty and satisfaction. Ultimately, a location attuned to your clients’ preferences solidifies your business’s position in the competitive insurance market.

Balancing the Scales: Cost versus Opportunity

When selecting a location for your insurance business, it’s critical to meticulously weigh the financial investment against the potential revenue it could generate. To make informed financial decisions, engage in a comprehensive budgetary analysis and compare your investment to the anticipated returns. This thoughtful balance is not merely a matter of fiscal responsibility; it represents a strategic step toward achieving long-term, sustainable growth in the competitive winsurance world.

Wrapping Up

Selecting the right location for your insurance business is a multifaceted decision that extends beyond geographical considerations. It involves aligning with your brand, ensuring accessibility, tapping into the right workforce, complying with legalities, potentially operating from home, crafting a comprehensive business plan, understanding your customer base, and balancing costs with revenue opportunities.

Each factor plays a critical role in setting the stage for your business’s success. Remember that the right location is not just a place; it’s the starting point of your business’s story. Choose wisely, and watch your insurance venture thrive.

Image via Freepik

 

Navigating Success: Your Guide to a Flourishing Career in Insurance

The insurance sector offers a wide array of career paths, each accompanied by compelling advantages like job stability, competitive compensation, and the opportunity for growth. This guide aims to ease your entry into the field, providing essential steps and strategies for launching a successful insurance career. Whether you are a fresh graduate or a seasoned professional thinking about a career change, this comprehensive guide is for you.

The Allure of Working in Insurance

What makes the insurance sector so appealing? For starters, the industry tends to be recession-resistant, providing a level of job security that is hard to find elsewhere. The range of roles available is incredibly diverse, offering options from customer-facing jobs like sales to data-focused roles such as actuarial science. The compensation packages are often attractive, incorporating not just a solid salary but also a range of benefits including health coverage, retirement plans, and performance-based incentives. Working in insurance also equips you with transferable skills like risk assessment and customer relations, making you valuable across a variety of sectors.

Assembling a Noteworthy Resume

The first impression many employers will have of you is through your resume, making it crucial to get it right. In the digital era, there is no need to start from scratch or have specialized design skills to create a professional-looking resume. The beauty of free online templates lies in their ease of use; you can choose from a library of professionally designed layouts, then add your own text, photos, and colors. If you’re new to the industry or not quite sure how to best represent your skills, try a resume creator online to guide you through the process. This ensures that your resume includes all the vital elements such as quantifiable achievements and relevant skills.

Exploring Diverse Career Options

The insurance industry is not a monolith; it’s a conglomerate of various specialized roles that cater to different skills and interests. You might find yourself interested in claims handling, where you’ll interact directly with policyholders and help them during pivotal moments in their lives. Alternatively, underwriting could be a suitable avenue if you have strong analytical skills and enjoy assessing risks. Sales roles are available for those who excel in interpersonal communication and are goal-oriented.

Starting as an Independent Insurance Agent

Choosing to become an independent insurance agent opens up a world of possibilities, granting you the autonomy to dictate the trajectory of your own career. Forming an LLC is a favored option, providing several inherent benefits including limited liability, tax advantages, and generally less paperwork compared to other structures like corporations. Each state has its own set of regulations and requirements for establishing an LLC, so it’s important to consult local laws before proceeding. Formation services are available that can guide you through each step, making the entire experience less burdensome and eliminating the need for expensive legal consultations.

Vetting Your Prospective Employers

Research is an essential component of any job search. Going beyond the superficial aspects of a company, look into their financial health, employee satisfaction, and overall reputation in the industry. Employee reviews and news articles can provide a wealth of information about company culture, growth opportunities, and more. This insight will not only guide you in selecting the right workplace but will also equip you with useful knowledge for interviews.

Gain Real-World Experience

While academic qualifications are important, companies highly value interns or entry-level employees who are willing to learn on the job. Hands-on experience allows you to apply theoretical knowledge in a real-world context, accelerating your career growth and making you a more attractive candidate for future roles. Practical experience can be the deciding factor in landing that coveted position or climbing up the career ladder.

Acquire Necessary Credentials

The insurance sector often requires specific qualifications and certifications. Whether it’s getting an insurance license or gaining risk management qualifications, ensure you meet the prerequisites for your desired role. Moreover, ongoing professional development is usually essential in this industry. Many employers provide training programs and even cover certification costs as a part of their benefits package, making it easier for you to stay updated and competitive in the field. Get ahead in your insurance career with Slater All Lines Insurance School. Explore our range of pre-licensing education, certification courses, and continuing education offerings.

Build Valuable Relationships

Networking is often the missing piece in many career strategies. Attend industry events, join insurance associations, and maintain an active LinkedIn profile to build your professional network. Contacts made through networking can lead to job referrals, provide career advice, or even become long-term mentors. The strength of your network can significantly influence your career trajectory and job satisfaction over time.

This guide provides you with actionable steps for a smooth entry into the insurance sector. Armed with this knowledge, you are well-equipped to make informed decisions that will set the stage for a successful and fulfilling career. The strategies offered here are your blueprint for success in this resilient and diverse field.

Getting Started in Insurance After a Career Setback

Starting a new career after a setback–such as a layoff or furlough–can be a frustrating process, but there are several profitable options available these days that will allow you to earn on your own terms. One popular path is in insurance, and you can get started no matter what your educational background is. The key is to do some research and come up with a solid plan for your trajectory, including learning how to make the most of your existing skills and signing up for courses at Slater All Lines Insurance School that can help you move ahead with your own business. Read on for tips on how to get started in the insurance industry.

Do some research

The first step in starting a career in insurance is to research the various areas you could go into. These include investigating, claim adjusting, underwriting, or working with an agency to help individuals and families, among others. Once you have a good idea of what each of these jobs entails, you’ll be able to pinpoint the area you’re most interested in and look for courses to become certified. Some jobs in the insurance field require travel while others offer more flexible hours, so it’s important to make sure you understand what your responsibilities will be. It might be helpful to look at insurance companies online and get an idea of what they’re looking for and how they operate.

Get educated

Once you have an idea of the field you’re interested in, it’s time to plan for your education. Slater All Lines Insurance School offers online self-study courses so you can work at your own pace and prepare for the state exam, complete with downloadable textbooks and quizzes that will help you learn all about your preferred area of interest. Keep in mind that in Washington state, you’re required to renew your insurance license by taking some refresher courses after a certain amount of time has passed.

While certification courses are essential, it’s also important to take stock of the skills you already possess that will translate well in this field. Customer service, math, and analytical skills, and problem-solving abilities are all extremely helpful in the insurance business.

Boost your resume and prep for the interview

Once you have the certifications you need, it’s crucial to take a look at your resume and give it a little boost. Tailor it to the job you want and make sure it’s well-written and formatted; take some time with your cover letter as well. Utilize keywords that will make your resume stand out and highlight any accomplishments from school that will make an impact on a potential employer.

It’s also a good idea to practice for the interview by researching the companies you’re interested in. Ask a friend or family member to help out by holding a mock interview so you can get comfortable with asking and answering questions. The more at ease you are, the smoother the process will be. Once you’re prepared, think about the details; what time will you need to leave your house in order to arrive on time? If the interview will be conducted over the phone, think about writing down key points to avoid stumbling over your words.

Consider becoming an entrepreneur

Once you have some experience working for an established company, consider becoming an entrepreneur and starting your own agency. Working for yourself can be a bit scary at first, but it can provide a lot of freedom as well as financial opportunities. Of course, starting a business comes with a lot to think about, including how you’ll protect yourself. Forming a limited liability company is a great way to ensure that your assets are taken care of, and it comes with several benefits as well. LLC’s offer advantages like pass-through taxation and the flexibility to run your company the way you want, meaning you’ll have opportunities for as much growth as you can take on. Click here to find out more about starting an LLC, including the steps required for your specific state and the fees involved.

Starting a new career after a setback can be frustrating, exhilarating, stressful, or a combination of all three, but with some careful planning you can turn a scary change into a successful new path. You can also do some research and make connections on social media sites like LinkedIn to meet like-minded people in your field of interest.

Interested in learning more about the programs offered at Slater All Lines Insurance School? Get in touch today for information on how to get started with a course.

Top 3 Insurance Products for Baby Boomers

As the “Baby Boomer” generation ages, the entire concept of retirement seems to be changing. No longer is retirement seen as a time to spend your days in idleness, but rather a time to take new adventures and explore new opportunities. Since this generation seems to be living longer, healthier lives than the retiring generations that came before them, they are looking for an exciting new phase in life, rather than prematurely giving their lives over to senility.

Of course, the “new beginnings” that baby boomers are looking for often require financial stability in order to be feasible, and the financial outlook for many members of this generation isn’t exactly promising. Many baby boomers have not focused enough on saving for retirement. Whether out of ignorance or fear, the aging population hasn’t planned well for their future, and many now stand in a place of uncertainty.

As retirement looms for baby boomers, they will start to pay more attention to their financial situation. As an insurance expert, that’s where you come in. You should be ready to offer them the products they’ll need in order to feel secure in their lifestyle. Below, we take a quick look at the top three insurance products baby boomers should be interested in.

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Annuities

Annuities can provide retired people with a source of income, which is a top concern among baby boomers. They come in various types, although they can basically be narrowed down into two categories: immediate (pays out immediately) and deferred (payments accumulate over time). There are also fixed annuities (payments of the same amount) and variable annuities (payments based on investment performance).

As you learn the pros and cons of all the options, you’ll be able to advise baby boomers on the best choices for their specific situations, bringing them confidence in their income security for the future.

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Investments

Investing directly in stocks, bonds, and mutual funds is a good way for baby boomers to diversify their portfolios and add to their retirement income. Depending on the age and personal preference of the client, he/she will likely want a mixture of investment types, in order to offer both long-term growth (stocks) and lower risk growth (bonds, cash).

Conservative investments can be a great way for baby boomers to feel a little more secure about their financial situation. As they feel more financially independent, baby boomers will be able to look forward to retirement, rather than dread it.

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Long Term Care Insurance

As health becomes an important issue for aging baby boomers, they may want to consider long term care insurance, which would help cover the costs of an assisted living center or nursing home, should the need to move into one ever arise. While the cost of these plans is often high, it may be worth it for some baby boomers, especially if the likelihood of such care is likely in the future because of medical or family history.

The decision to purchase long term care insurance will depend heavily on these factors, as well as the client’s current financial situation; for some retirees, the high costs of these simply aren’t feasible.

Regardless, this is a product that should at least be introduced to all baby boomers. The cost of this type of care, without insurance, can be extremely high, so if it is even a possibility, it should be seriously considered.

Helping the baby boomer generation feel confident and secure about their impending retirement is very important, and very needed. As we help this generation become informed about their options, we can help make the transition from work life to retirement go a little more smoothly.

5 Reasons to Consider a Career in the Insurance Industry

What do you think of when you think of a career in insurance? A dull desk job? Constant sorting through filing cabinets full of paper? Dooming yourself to endless, boring days in a call center?

Sure, insurance may not be the most exciting industry out there, but there are plenty of reasons why a job in insurance won’t necessarily be the dreary existence we’ve outlined above. In fact, a career in insurance can be rewarding, fulfilling, and yes, even enjoyable.

We can’t promise you’ll avoid filing cabinets entirely, but we can tell you that there is plenty to look forward to when considering a career in insurance. Check out our top five reasons why you should consider a career in the insurance industry.

Flexibility.

Working in the insurance industry offers you many options, from working in a corporate office as part of an in-house team, to running your own agency as an independent business owner. Especially if you choose the second route, you’ll enjoy the ability to set your own schedule and work practices—something that is very rare in the professional world. Having this flexibility improves quality of life and job satisfaction (and who doesn’t want more of that?).

Specialization.

“Insurance” is a very broad term. It takes all types to make the insurance industry work. Writing, marketing, customer service, sales, finance—these are all topics that are tightly intertwined with insurance. Getting a job in insurance could ultimately lead you down any of these specialized paths, allowing you to tailor your career to your specific desires and talents.

There is also a need for specialization within the insurance industry, specifically to untapped markets. Certain demographics are not being targeted by insurance companies, meaning that there is high potential for reaching these markets effectively. This means that even as a newcomer to the insurance world, there is the potential to grow your business very quickly.

Demand.

People may complain about insurance, but that doesn’t mean they don’t need it. Legal requirements—and humanity’s constant pursuit of security—ensure that there will always be a need for insurance. The industry is stable, and it doesn’t look like that will be changing any time soon.

Additionally, with a large amount of the industry workforce set to retire soon, there may in fact be a shortage of insurance workers with real experience and knowledge of the industry. The sooner you get in, the sooner you’ll become a trusted name in the industry.

Real-world experience.

The experience you gain in the insurance industry can benefit you in many ways. Not only can you benefit friends, neighbors, and businesses with the knowledge you gain, but you can also benefit yourself and your family. Experience in this industry could give you a leg up in the future, whether you’re trying to decide how to insure your home, shopping out your life insurance policy, or considering starting a business. Knowing the ins and outs of insurance will benefit you for years to come.
As mentioned before, a career in insurance can also give you a glimpse into other industries, which could help you immensely should you ever want to pursue a different path.

Rewarding work with a purpose.

The truth is, the insurance industry gives you an opportunity to truly help people. Many people know they need insurance, but are, quite frankly, confused by it. By providing them with the knowledge and expertise you gain in the industry, you’ll bring your customers peace of mind and a sense of security.

Moreover, working in insurance will allow you to work with people. You’ll see their problems, worries, triumphs, and opportunities. You’ll be the person they turn to when they have questions or concerns. You’ll have the chance to make their lives easier, better, and less complicated. It really is rewarding work, and it can allow you to make a difference in ways you’ve never thought of before.

Whether or not it has always been at the top of your “dream career” list, the fact is that the insurance industry offers its workers the incredible opportunity to work at a job that is secure, useful, fulfilling, and enjoyable. Take these benefits into account when making the choice about your career in insurance, and get ready to be surprised at where your career in insurance takes you.

5 Sales Skills Needed to Sell Insurance

It doesn’t take much to make it in sales, but it does take the right attitude and the right set of skills. Put these 5 skills into practice and you’ll have a leg up on the competition, no matter how tough the market may be.

5 Benefits of Using Our Online Classroom to Study for Your Insurance Exams

As an up and coming insurance agent, you have to take your state’s insurance exams. It’s a given; there’s no way around it. And before you can take that exam, you’ll have to study. There are several ways you can choose to study for your state test. Below we compare the different study methods for you, so you can decide for yourself.

Approach #1: Test Prep Manual

There’s an entire national industry devoted to developing and selling Washington State insurance exam test preparation manuals. And there’s a high demand for them, especially among busy insurance students. The manuals from the national companies are great – they provide appropriate information, graphs and charts, and practice tests. That’s their good points. Their bad points far outweigh their good, in our opinion. Let’s see…..they can be quickly outdated since they are not located in Washington State or printing material for our state alone. From the time it takes to write them and publish them, things can change. Important things like laws and best practices.

Approach #2: In-Person Classes (US!!)

You know the drill – go to class, learn some stuff, take a test. Live-lecture, in-person, insurance classes do offer several advantages over studying for the whole thing on your own. If you like the feel of a textbook-type manual, and you like to highlight or write notes in the margins, the textbook is a must purchase if you study yourself online. However, the manual comes for free when you attend a live-lecture test prep class. And then there’s the live instructor. It can be helpful to have someone to answer questions, and to give real-world examples. And even though you will have to fit a few class days into your already busy lifestyle and schedule, it can save you time and money in the long run if you pass your state test on the first time.

Approach #3: Online courses (US!!)

We offer the best possible choice, we believe, in our online courses. Why? We’ll give you five reasons.

  1. Various learning materials – We offer interactive test prep quizzes, as well as reading materials. We try to accommodate many learning styles and personalities. We’re more than just a boring old book or a live lecture insurance crash course.
  2. Flexibility – No class to arrange your life and work schedule around. Access the online classroom 24 hour a day, 7 days a week. Fit us in between meetings or household chores. We’re here when you want to be here.
  3. Cost – Our online classroom is offered at a reduced cost from our instructor-taught live lecture classes. While these classes tend to produce more first time test success, self studying online is a great second option. There are companies out there who charge hundreds of dollars for just 30 days of access to the study materials. Slater Insurance School offers training at an affordable price.
  4.  Adaptability – We can add new and updated material to our online classroom, at any time, instantly. We don’t have to wait until the next edition of the textbook comes out. We can be up to date within days, if not hours, of changes to insurance laws or accepted practices. Our information is always on top and up to date.
  5. Effectiveness – We have great first-time test success rate. Interactive test questions that simulate a real exam experience, whether solely online or blended with in-person classes, tend to see students performing better on exams and tests, and retaining what they’ve learned longer. Want to be a better student? Study with us.

Now that we’ve laid it all there for you, we think you’ll agree that our online classroom is THE place to be when studying for your insurance exams. Our variety, our flexibility, our cost, our adaptability and our effectiveness speak for themselves.

What Is Life Insurance?

We’re all familiar with the concept of life insurance. It’s a favorite motif in mystery television programs and novels. The young wife “bumps off” the old husband to get his million dollar policy. Or a friend covers up another’s suicide so as not to deny his wife and children of the life insurance pay off. We’re all familiar with it, but do we really KNOW what life insurance is all about? Today, we’re going to take a closer look and find out.

Brief History of Life Insurance

Life insurance has its root in the “burial clubs” of ancient Rome. You could pay a membership to the club to ensure that you received a “proper” and “appropriate” funeral, complete with professional mourners. Modern life insurance began in the early 1700s in London, with the Amicable Society for Perpetual Assurance. You joined the Society (males only) and paid a yearly amount for one to three shares. Once a year, the Society made a payment to your heirs based on how many shares you had been paying for. It was a way to ensure that you didn’t leave your wife and children destitute.

Life insurance was introduced into the United States in the 1760s, when Presbyterian and Episcopalian ministers developed a similar scheme for their ranks. By then, the practice of setting premiums based on age and overall health had been established. At the outbreak of the Civil War, over a dozen life insurance companies were begun, nearly all of them associated with specific occupations or firms. In the 1870s, the first military life insurance was founded, with both the Army and the Navy playing a part.

Types of Life Insurance

Life insurance typically takes one of three forms:

  • Term life insurance – issued for a set period of time, typically from 5 to 20 years. Premiums are set and guaranteed for the length of the policy.
  • Whole life insurance – issued for the policy holder’s lifetime. Premiums are set and typically do not change. Whole life has a cash value, which can be used as a savings component or even as an estate planning tool.
  • Universal life insurance – issued for the policy holder’s lifetime. Unlike whole life policies, the premiums are flexible, and can be raised or lowered throughout the lifetime of the policy holder. Like whole life policies, universal policies also have a cash savings component.

How Life Insurance Premiums Are Determined

Since the 1750s, when the first life table – a chart showing the risk of death at any age – was issued, premiums have been determined partially by the policy holder’s age at the time of the policy’s purchase. General health was taken into account not long after, as insurer’s began to see individual’s waiting until becoming ill or aged to purchase a policy.

Policy premiums are still determined by age and general health, although a recent change has been to take the individual’s family medical history also into account when determining how much your monthly premium will be. However, age and health have rarely, if ever, affected the total amount of the policy.

Life insurance is something we all know. And now, we know it a little better.

What to Expect From the Insurance Licensing Exam

However, with proper attention to your studies, a can-do attitude, and sufficient preparations, all of that hard work will pay off as you successfully pass your licensing exam. Here are some things you’ll need to know first.