Is becoming a state farm agent worth it in this current age? Yes, becoming a State Farm agent is one of the most well-known and fast-growing professions that will assist your future career. As an agent you’ll provide a variety of insurance, banking, and financial services to satisfy the demands of customers and also earn a huge income. The annual salary of a senior agent can reach $108,708, while the base salary of an agent is $36,328.
Moreover, If you’re thinking about becoming a State Farm agent, you’re not alone. Becoming a licensed insurance agent has become an increasingly common side hustle in recent years.
As of 2016, the Insurance Institute of America estimates that there were more than 1 million licensed agents operating in the United States. Many people start a State Farm agent career because they think it will be easy and rewarding.
After all, working as an insurance agent is one of the few opportunities where you can get paid for recommending someone to buy your company’s product.
In this blog post, we’ll explore the upsides and downsides to becoming a licensed insurance agent with State Farm specifically, we’ll also know if becoming a state farm agent is worth it, as well as diving into what it takes to get started on this career path.
For many people, this job may seem like a dream come true; after all, what could be better than working directly with customers and giving them your expert advice on insurance policies?
What is State Farm Insurance company
State Farm insurance company is one of the biggest providers of property and liability insurance in the United States of America, as well as the biggest provider of auto insurance, according to Wikipedia.
State Farm relies on captive or sales agents, commonly referred to as exclusive agents or marketers, to sell insurance. It is listed as the 36th most profitable American corporation in the 2019 by Fortune 500 ranking list .
For more than a century, State Farm has been assisting Americans. George J. Mecherle established it on June 7, 1922, and it now has over 18,000 agents, 343 claim offices, and 30 operations centers throughout the United States.
Over the years, the organization has grown to become one of the largest groups of mutual insurance companies throughout the United States with its headquarters in Bloomington, Illinois.
What Does A State Farm Agent Do
State farm agents are one of the company’s most valuable assets. They oversee the day-to-day operations that help the organization grow.
The state farm agent provides valuable information to clients about insurance policy, the risks that make it necessary, how to protect themselves from those risks, and help them take action to achieve the most important goals.
They make sure that clients are insured by offering them the best policy that suits their current situation and also providing information that’ll enable prospects to buy through them and with this, agents make a huge amount of income by selling an insurance policy.
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However, there are some drawbacks to this role as well. If you’re thinking about starting a career in state farm as an agent, it is important to know if becoming a state farm agent is worth it today.
What Does State Farm Insurance Cover
State Farm insurance covers Auto owners, Home owners, Condo owners, Renters, Small business, life insurance, medicare supplement insurance, hospital income insurance, pet insurance, liability insurance, and health insurance.
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State farm insurance provides fantastic insurance coverage alternatives, low costs, simple claims, and exceptional service. As an agent you can make a lot of income from their top notch service because they are one of the trusted companies in the USA.
While it’s not a job for everyone, becoming an agent can lead you to a variety of different career paths in the future such as insurance, customer service operator, underwriting, actuary, claims adjuster and many more. Above all it is advised to check if becoming a state farm agent is worth it, your time and expenses.
But first, let’s take a quick look at how you may become a State Farm agent as soon as possible and start earning money. I don’t want this essay to sound like it was created to teach you how to get money from State Farm, but rather how much information and assistance you can provide to your client.
How Do I Become A State Farm Insurance Agent
Working as a state farm agent can only be possible if you have the qualifications and your request is being approved. Other than that, you might not become a state farm insurance agent.
To achieve your goal and maximize the benefits of being a state farm agent below are some guidelines to follow;
1. Make sure you have a good credit history
The first step you must consider on how to become a licensed insurance agent with state farm is to make sure that you have a good credit history.
A credit history is a record of a borrower’s responsible repayment of loans from various sources, such as banks, credit card companies, collection agencies, and governments.
Before your application would be approved, your credit history is checked in order to determine your trust level and ability to handle financial position.
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2. Understand your job an an agent
Next is to get a better understanding about the position you’re applying for. Sure I know you’re not a novice, but I’ll advise you to attend training or you can speak to any state farm agent that you know, to put you through the kind of job you’ll be rendering.
YouTube is another excellent resource for learning about the application process. You will also get the opportunity to speak with State Farm contacts and other agent applicants.
3. Get License and Requirements
Be sure you have the appropriate insurance licenses such as property & casualty and life or health policies.
For example, if you want to become an agency in California, be sure you get approval from the Californian administration before opening your doors. This would also be a condition for your approval.
4. Submit an application
You can apply for the Agency Career Track Program by visiting a physical location or by contacting a recruiter online.
5. Prepare for State Farm Interview
At this stage, the hiring process may take one of two paths, depending on the type of position being filled. In many cases, this process concludes with the hiring of a candidate, and the position is filled.
In other cases, the hiring process may continue even though a candidate has been hired, as the organization actively searches for other suitable candidates to fill the position.
In either case, the hiring process is monitored and evaluated throughout, and hiring decisions are constantly re-evaluated.
6. Wait For Assessment
With the proper state licenses confirmed, you will be able to see, consider, and compete for agent positions across the United States.
7. Start farm agent Training
Once chosen, you will enroll in the agent training program where you will receive leadership and product training in addition to gaining field experience.
Is Becoming A State Farm Agent Worth It
Yes, state farm is worth every second of your time. The biggest advantage is that State Farm pays expensively for your licensing and also trains you on the basics of insurance. In addition to the benefits, they pay employees an average of $16.38 per hour. Although pay could range from an average of $11.86 to $25.30 an hour, depending on your position and experience to make sales.
If you want to work in the insurance industry, it’s best to start with State Farm insurance so that you can gain more in-depth knowledge.
Once you’ve completed your training, you can work as an independent agent and represent a variety of organizations or insurance companies to make sure your clients are properly covered at the most affordable rates.
To succeed, you must be prepared to invest your time and money into it. The business is making every effort to remain relevant, but this calls for changes for agency owners and their staff also.
Reasons to decide if becoming a state farm agent is worth it in this current age
What are some advantages of becoming a state farm agent? Starting a small business as a state farm agent might not be that too interesting due to its management, advancement, pay and benefits and work-life balance. But still, others might not notice any flaws in these categories, so below I’ll be outlining some pros and cons of each feature according to its agents’ reviews as seen on indeed.
This section is based on other agents’ reviews about State Farm according to management, job security, advancement, pay & benefits, work-Life balance.
Pros
- They offer a Free training to agent
- State Farm Insurance Agent Trainees earn $35,000 annually, or $17 per hour
- You can make a good career out of state farms.
Cons
- The fact that you sell more premium than you should is unimportant, as their management encourages you to incur significant debt.
- They also don’t care if you look after your clients.
- If you don’t have at least $50,000 to invest, I wouldn’t suggest becoming a state agricultural agent.
- For too little reward and danger, there is too much work and investment. Money seems fantastic at first, but if you survive past the first year, you will lose your shirt.
- After you have spent every single dollar you have ever saved to invest in your firm, State Farm will dump you. They are ruthless.
How much commission does a State Farm agent make?
Becoming a state farm agent might not be a great achievement to most people but as a starter, the income is enticing, even for staff working for a state farm agent .
In the first year of any policies you sell, you can count on receiving a hefty commission from State Farm of 40 to 90% of the annual premium. While your follow-up commission on the same sales will range from 2% to 5% for the following two to four years.
How much does a local State Farm agent make
What is an average state farm agent salary? The average salary of an agent all depends on certain factors which include location and number of employers. The salary starts at $36,328 per year and goes up to $108,708 per year for the highest level of seniority
How much does a local State Farm agent make in an hour?
Estimatedly, they pay employees an average of $16.38 per hour. Although pay could range from an average of $11.86 to $25.30 an hour, depending on your position and experience to make sales.
Final Thought: Is becoming a state farm agent worth it
Starting a State Farm insurance business is worth it as you’ll gain most of your investment funds and also make a huge profit. Apart from that, you’ll also be trained to be a professional insurance agent and you can get your own office.
