Becoming an Insurance Agent: Building the Foundation to Financial Security
January 2, 2019
One of the benefits of becoming an insurance agent is being able to educate friends, family and community members on how to plan for their futures and protect their livelihoods. You’ll help your clients make financial decisions that fit their life phase and support their future plans. While helping others with their financial security, you’ll also be able to create your own plan to meet your financial goals and get your financial house in order.
Step 1: Protection Through Insurance
To set the foundation of your financial home and future success, it is important to begin with the essential protection and build from there. Farm Bureau Financial Services offers many types of insurance to protect clients’ homes, vehicles and more. Safeguarding what’s most important will help you and your clients grow in future endeavors.
Home & Auto Insurance
As an insurance agent, you’ll help clients during different life events. Purchasing a home is an exciting time for people and a home is one of the biggest purchases clients will make. Educating them on the appropriate insurance coverages for their home is an important part of the job.
Whether your client owns a car, truck, motorcycle, farm equipment or other recreational vehicles, having the proper insurance coverage will help protect their finances in the event of an accident. Depending on their coverage, it could cover damages, injuries and/or medical payments. Knowing how your vehicles are protected is another bonus of becoming an insurance agent, so you can ensure you have the proper coverage before the unexpected strikes.
Liability & Umbrella Insurance
Liability insurance is packaged into a typical home and auto policy, but you can help your clients assess the appropriate amount of coverage. Liability insurance is there to provide protection against injury and property damage claims, including protection for legal services. Umbrella insurance is an additional way to protect your clients, their businesses and more by increasing the amount of liability coverage. With umbrella insurance, clients are protected beyond their existing homeowners or auto insurance policies to avoid paying out of pocket for additional costs. Life happens, and as an insurance agent, you get to help your clients choose the best combination of coverage to protect them.
A person’s ability to earn income is one of their most important assets. Their income goes toward providing for their family and accumulating wealth. Life Insurance is essential in protecting a family in the event of an untimely death. As people progress through various life stages, the need for life insurance changes. It’s imperative to stay in contact with your clients because their needs will change over time. Additionally, as you grow and your needs change, you’ll be able to assess your situation and identify a plan that will give you and your family the appropriate protection.
Farm and Ranch Insurance
Farm Bureau is an industry leader when it comes to protecting farm and ranch operations. Farming and ranching can be unpredictable, and there are usually factors that are uncontrollable. Agents partner with Ag Marketing underwriters to assess all insurance needs across the entire operation to better protect your community’s farmers. In addition to protecting farms and ranches, Farm Bureau also works with local small business owners to protect all aspects of their businesses they’ve worked so hard to build.
Step 2: Saving and Planning for the Future
Once you’ve built a solid foundation, the next step to getting your financial house in order is to build savings for shorter term needs. This includes establishing an emergency fund for the unknowns in the future, such as a necessary vehicle or home repair. Insurance coverage can only assist so much, so setting aside a designated amount or percentage of your income each month in the event of an emergency will reassure you that if something major happens, you’ll be safe. Preparing for unforeseen expenses may seem like you’re expecting the worst, but isn’t it better for your family financially if you don’t have to take a big financial hit in an already stressful situation?
It’s important for insurance agents to have conversations with their clients about how they are planning for the future. Maybe your clients have three kids that they want to send to college someday, or they’d like to ensure that they have enough money to retire comfortably. By saving money and planning for these aspirations, they’ll be much more likely to make them happen in the future. As an insurance agent, you can sit down with the families you serve and discuss their goals and determine a path to reach those goals that fits with their budget and current situation.
Fixed Income Investments
A fixed income investment is typically an investment that has less risk and a shorter time horizon. They include investments such as CDs, Fixed Annuities, and bonds but can also include physical assets, such as machinery, land, buildings or vehicles. Fixed income investments play a role in your clients’ overall financial and investment plans because they can often expect regular returns on their investments. As a Farm Bureau agent, you’ll also consult clients on their investment strategies.
Step 3: Growing Through Investment and Wealth Management
Once insurance needs are covered and an emergency fund is in place, you can begin focusing on longer term and larger financial goals. The first step in this process is to identify what those goals are and to determine the amount available to commit to them consistently.
Then, through our Wealth Management platform, you can help clients establish an appropriate mix of investments such as mutual funds and annuities that align with the goals they are trying to achieve. Having a comprehensive conversation with clients on a regular basis is critical in ensuring appropriate insurance coverages and investments. These are skills that you’ll learn when you become an insurance agent and can use for your own financial well-being.
More and more people, regardless of age or stage in life, are developing financial plans to help them stay on track for future plans and goals and to simply help boost their confidence in financial management. By following the plan closely and reviewing it regularly, your clients’ chances of meeting their financial goals increase significantly. Another benefit of having a clear financial plan is that it can help them balance different financial priorities. They will discover how their financial goals are related. For example, they’ll learn how saving for children’s college education might impact the ability to save for retirement. Using the information gathered, you and your clients can then decide how to prioritize goals, implement specific strategies and choose suitable products or services to move them along the path to reach their financial goals.
Farm Bureau: Your Financial House
Becoming an insurance agent for Farm Bureau is more than selling insurance. We take pride in helping members of our community make decisions that have a significant impact in protecting their livelihoods and futures. By helping others make these important decisions, you’ll wake up with purpose and learn new skills that will prepare yourself for financial success as well. Learn how you can begin building your financial house as a Farm Bureau insurance agent!