Four Tips To Prepare For The Insurance License Exam

Things You Need to Know Before Buying Car,House, Health & Life Insurance online.

Insurance Buying Tips #1: Shop smart
When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.
Insurance Buying Tips #2: Look for discounts
Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.
Insurance Buying Tips #3: Fill in the gaps
An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.

If the art of the sale and a fast-paced, people-driven career appeal to you, becoming an insurance agent may be your dream job. Before you can start helping your friends and neighbors find the insurance policies that best fit their needs, you have to master the skills necessary to pass your state's insurance agent exam.

Exams Differ from State to State

Agents sell a variety of products, including life, auto, property, and health insurance. To best serve their customers, insurance agents need to understand the products they are selling and how the government regulates them. Insurance agent exams ensure that agents have sufficient knowledge to correctly present information concerning insurance products to clients, and to conduct themselves in an ethical and legal manner. Agents selling various products (life, health, property, etc.) may need to take licensure exams for the specific type of insurance they will be selling. Exams differ from state to state, and prospective agents will need to study for their state's exam.

Preparing for the Exam

To increase your chances of passing your state's insurance licensure exam, follow these tips:

Insurance Buying Tips #4: Purchase life insurance—you aren’t too young
Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.
Insurance Buying Tips #5: Talk to an independent agent
An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.
Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living
You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.
  • Find out what classes and exams are required. Your state's department of insurance can provide you with information concerning what training courses you must take and what exams you must pass to become an agent.
  • Find state-specific study materials. If you're trying to become an agent in Texas, using study materials designed in Hawaii won't help you very much. While there are some fundamentals about insurance that apply everywhere, each state has its own quirks regarding insurance. Find an insurance exam prep company that can offer you training and study materials designed for your state.
  • Practice good study habits. Set aside a certain time and place for study. Avoid distractions during this time and focus on the material. If you have a friend who is also taking the exam, study together and encourage one another.
  • Get enough rest. Before taking the exam, be sure to get a good night's rest. Your mind will be sharper, and you'll be better able to focus if you get a solid eight hours' sleep the night before the test.

One of the great things about becoming an insurance agent is that it's a career that folks from various walks of life can break into. No college degree is required (although having one helps), and many agents have crossed over into the industry from other fields. With a little effort and the right study materials, most aspiring insurance agents can easily pass the exam in their state and be on their way to a rewarding career.

Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover
Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.
Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier
here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.
Insurance Buying Tips #9: Review your insurance needs on a yearly basis
As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.
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