Many insurance companies issue annuities, and brokers or insurance agents are sales professionals who assist their clients, who may be individuals or companies, in selecting the right policy for their needs. The brokers explain and write the policies, which are agreements between their client and the insurance company. Annuity brokers do very much the same kind of work that agents do. Brokers, however, do not work from specific insurance companies. They place clients with the insurance companies that are suitable for the clients’ needs. But their common goal is to assist customers in finding the right kind of policy.
The first and very important step to becoming an annuity broker is to obtain a college degree, preferably in business, economics, accounting, mathematics or a related field. Excellent skill in sales is a must. And taking courses related to business will increase your ability and can boost your chance of succeeding in this career. To become an annuity broker you must pass a written exam given by the state in which you work and almost all states offer insurance exams that must be taken before obtaining a license to sell insurance.
Duties and Responsibilities
An annuity broker interprets the terms and conditions of the annuity that a client wants to invest in. They provide accurate information on annuity rates. They sell insurance and investigate claims, but they tend to deal with the client on a more personal level. A client consults an annuity broker to help them decide which annuity to invest in, so annuity broker should be, trust worthy and able to ensure that the client doesn’t make any dubious investments. The broker also gives the required information to his client to make right decisions. An annuity broker also acts as financial consultant and ensures that the clients understand the tax benefits of the investment and encourages them to invest again and again.
All annuity brokers and even insurance agents must be licensed by the state in which they work or by the Department of Financial Services. To obtain a license, candidates must pass a written test. You should be able to answer all the concerns of your client regarding the product or the insurance that you are recommending. You should be trust worthy, confident, and competent.
Earnings, Benefits, and Commissions
Because brokers usually work on commissions, their incomes vary widely. Those who work longer hours earn more. And as we all know, experienced workers earn much more than new brokers. Employers pay new workers a base salary plus commission while they learn and build up their clientele. But some enjoy the benefits of becoming an independent annuity broker. Because they are not affiliated with one particular company, independent annuity broker earn only commission instead of salary plus commission. There is little opportunity for advancement. However, independent annuity brokers are usually able to organize their own schedules and work as much or as little as they need.*
*According to the BLS, http://www.bls.gov/oco/