How to Sell Supplemental Insurance

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Supplemental insurance is insurance that is sold in addition to a major insurance plan. This money can be used for any purpose and is typically used to pay for bills while you are unable to work due to an illness or injury. Supplemental insurance can cover smaller, more specific risks that a larger policy might not cover or it can provide extra benefits in addition to the base policy. Common supplemental insurance policies pay you cash directly instead of paying claims to your health care provider.

Get your pre-licensing study materials. Supplemental insurance normally requires a life and health insurance license. Get these materials from the insurance company you will be working with. For example, if you will be working for Aflac, you will need to obtain the study materials from the company.

Sit for your exam. You must pass a state exam for life and health insurance. This will enable you to sell the supplemental policies. You may need to pay an exam fee to take your exam, depending on your state. You will also need to take the exam in a state-approved testing facility.

Get your certificate of completion. Once you pass your exam, you will be given a certificate of completion. This certificate will allow you to apply for your license.

Get fingerprinted. Your state may require electronic submission of your fingerprints or they may require that you get your fingerprints taken by a police station. For electronic submission, you will need to use a state-approved biometric facility that will submit your fingerprints to the state.

Apply for your license. Download your state's insurance license application from your state's department of insurance website. Fill out the application and return it with your fingerprints or a receipt of fingerprint submission if you submitted them electronically. Pay the administrative fee with your application submission and wait for your new license to arrive in the mail.

Apply to insurance carriers or to an insurance agency. If you are applying to work for an agency, then there is no need to apply directly with an insurance carrier since the agency acts as the managing general agent for the insurance company and you work for the agency as an insurance agent.

Set up your office. Rent an office or set up a home office if you become an independent agent. Purchase office supplies such as paper, pens, a phone, fax machine, desk and chairs. Obtain applications for insurance from your insurance company.

Obtain errors and omissions coverage. Errors and omissions insurance is liability insurance that protects you from being sued by clients and is generally required when selling insurance in most states. You must have E&O insurance before you can sell any of the insurance company's or agency's product offerings.

Acquire clients. Contact business associates, friends and even family members to offer them a quote for insurance. Direct marketing and telemarketing are also used to get insurance leads. Purchase business cards, fliers and other related marketing material to distribute in your community.