Rich here with Summit Life Group. I want to take a few minutes to talk about the pros and cons of selling life insurance compared to other part-time jobs or projects you might consider for earning extra income.
We often hear about the gig economy and how many Americans today are doing various things on the side to generate additional income. So, how does selling life insurance compare? Is this a viable option?
We have many people who reach out to us about possibly earning extra income on top of their nine-to-five job or career. Is selling life insurance a viable option? I want to discuss some of the pros and cons of selling life insurance on a part-time basis.
First, there are other things you can do that might generate income more quickly. For example, driving for Uber, DoorDash, or delivering groceries. These jobs typically have a short ramp-up time, allowing you to start generating cash flow very quickly.
Con: Entry to Start
When it comes to selling life insurance, depending on where you are in the process, you may have to take a pre-licensing course, pass your test, and complete all the necessary licensing requirements, as you can’t sell life insurance without being licensed. If you’re selling virtually, like we primarily do, you might also need to obtain non-resident licenses in other states, which is a simple process. After that, you’ll need to get appointed with the insurance carriers for the products you’re going to sell, go through training, and then actually start engaging in the process.
Con: Learning Curve
For instance, we had an agent yesterday who, on her very first call, wrote an application. Her process was short, but for others, it can take longer. It varies with each individual agent. Your commission will also depend on what product you sold, which carrier, and various other factors. So, life insurance isn’t something you can decide to start today and expect to generate income by next week—unless you’re already licensed and appointed. Even then, there’s a learning curve. There’s always something to be learned, a skill set to be developed. Some people may have these skills from previous experiences, while others may not. For example, we had an agent who had never sold anything before, yet she jumped right in and had huge success right off the bat. But for others, it can take a month or more to get the hang of it.
The main point I want to communicate is that there are many things you can do today to generate part-time income. If you’re looking for immediate cash flow, there have never been more opportunities. The thing about life insurance, and why I’m obviously a believer in it—I own a life insurance agency, and we support independent agents—is that you’re not just solving a short-term problem but hopefully creating a long-term solution for yourself.
Pro: Opportunity to build a Long Term Business
The great thing about life insurance is that, yes, it has a longer ramp-up process to get licensed, appointed, trained, and started. But long-term, you’re building a real asset. As an independent agent, you can begin building a book of business, developing a skill set, and growing a client base. You can start part-time and eventually turn it into a full-time business. You can build a renewal base, a client base, and continue to scale your business to whatever degree you desire.
This isn’t typically something you can do with a delivery service or other gig jobs, which might create immediate cash flow but don’t offer the long-term opportunities that life insurance does if you’re committed to it.
To illustrate, I know life insurance agents today who are now six-figure earners. When they started selling life insurance, they were driving for Uber or doing other jobs to keep cash flowing while they built their life insurance business full-time. Today, they have a six-figure business.
You need to understand what’s best for you. Maybe you need to do some of those other things to keep cash flow coming in while you’re learning. But if you’re looking for a long-term solution, something you can start part-time with the goal of going full-time, I believe strongly in the life insurance business. There has never been a better time. There is a huge need, and people need what we have to offer.
If you’re considering becoming a life insurance agent or already are one and are looking for an agency to partner with, fill out the link below to learn more about Summit Life Group. We are an innovative platform that connects consumers directly with licensed professionals in the insurance and retirement space. We support agents and advisors, both in life insurance and retirement, and can help connect you with clients and leads that you can hopefully turn into clients. We provide training, a platform, and everything you need, wherever you are in your process.
Join us: https://slgteam.com