Insurance brokers protect their clients’ financial investments. Insurance agents typically major in business or economics in college, and the courses taken in such a program teach insurance students how to understand the social and economic impacts of the insurance industry. Since financial protection is constantly in demand, insurance broker jobs make up a large percent of the workforce, and there are several different career paths that an insurance broker can choose.
An insurance career consists of three major areas: life, health and property or liability. A life insurance agent sells payments to a client, which are made either monthly or yearly. When the client dies, his or her family receives a sum of money determined by the terms of the plan, as long as the client was still under the policy at the time of death. Life insurance brokers may also work out terms of payments for other areas of a client’s life, such as children’s college tuition.
Health insurance agents are responsible for making sure that every aspect of a client’s medical concerns are covered. This includes doctor and hospital visits for routine check-ups and emergencies. Often, health insurance broker jobs involve working with groups of clients or employers, and some jobs in this industry are created by the government to enforce such policies as Medicaid. Property or liability insurance agents work with damages done to or by clients. These brokers must be familiar with health insurance terminology because this field covers clients hurt on the job and must deal with worker’s compensation.
Insurance broker jobs and insurance agent jobs consist of many of the same functions, including meeting with clients, analyzing their financial records and needs to determine which policy works best for them, and settling claims for clients. The biggest difference between a broker and an agent is that an agent typically works for one agency, while an independent insurance broker usually sells policies through many different agencies. As insurance sales are a large part of such a career, many insurance broker jobs pay based on commission. Agents and brokers may also be salaried employees of an agency.
Insurance broker jobs can only be secured by obtaining an insurance broker license after passing an examination administered by the state. Additional tests, such as the Series 6 or Series 7 examinations, are given by the National Association of Securities Dealers (NASD). The Series 6 test allows the broker to sell mutual funds and variable annuities, while the Series 7 exam qualifies the broker as a general securities sales representative.