Insurance POSP: 10 Ways To Make Money as a Point of Sales Person (2023)

Insurance POSP Guide: Looking to make money as an Insurance POSP? Check out these 10 ways to boost your income and succeed in your sales career!

What is an Insurance POSP?

An Insurance POSP, or Point of Sales Person, is an insurance sales agent who is authorized to sell insurance policies on behalf of insurance companies. POSPs can work as freelancers or employees of insurance companies & their primary responsibility is to sell insurance policies to potential customers and provide them with guidance & advice on the type of policy that best suits their needs. To become an Insurance POSP in the USA, individuals need to meet certain eligibility criteria, complete the required training, pass the POSP exam & apply for a license.

How to Become an Insurance POSP?

The insurance industry has been growing rapidly over the past few years, leading to an increase in demand for qualified insurance professionals. One such role that has emerged in recent times is that of an Insurance POSP, which stands for Point of Sales Person. Check out some of the basic steps required to become an Insurance POSP in the US.

Understand the Role of a POSP

Before embarking on the journey of becoming an Insurance POSP, it is essential to understand the role and responsibilities of a POSP. A POSP is an insurance sales agent who works as a freelance or an employee of an insurance company. Their primary responsibility is to sell insurance policies to potential customers & provide them with guidance and advice on the type of policy that best suits their needs.

Meet the Eligibility Criteria

To become an Insurance POSP in the USA, you need to meet certain eligibility criteria set by the state authorities. These criteria may vary from state to state, but some of the common ones include:

Age Criteria

You must be at least 18 years old to apply for a POSP license.

Minimum Education

You must have completed your high school education or hold an equivalent degree.

Background Check

You must pass a criminal background check to ensure that you do not have any criminal convictions that could hinder your ability to work as a POSP.

Complete the Required Training

After meeting the eligibility criteria, you need to complete the required training to become an Insurance POSP. The training includes a pre-licensing course that covers topics such as insurance policies, laws & regulations. You can choose to attend the training in person or take an online course.

Pass the POSP Exam

Once you complete the training, you must pass the POSP exam to obtain your license. The exam tests your knowledge of insurance policies, laws & regulations. You need to score at least 70% to pass the exam. You can retake the exam if you fail, but you need to pay a fee for each attempt.

Apply for a POSP License

After passing the exam, you can apply for your POSP license. The application process varies from state to state, but you need to provide your personal & educational details and proof of completing the pre-licensing course & passing the exam. You also need to pay a licensing fee, which may vary from state to state.

Get Appointed by an Insurance Company

To start selling insurance policies as a POSP, you need to get appointed by an insurance company. This means that the insurance company authorizes you to sell their policies on their behalf. You can approach insurance companies & apply for an appointment. Once appointed, you can start selling their policies & earn a commission on each sale.

Renew Your License

Your POSP license is valid for a specific period, after which you need to renew it to continue working as a POSP. The renewal process varies from state to state, but it generally involves completing a certain number of continuing education hours & paying a renewal fee.

15 Ways to Make Money as an Insurance POSP:

Selling Insurance can be a very lucrative long-term income source if you are planning to make extra income as a POSP. There are several ways you can make money selling insurance which include the following:

1. Sell Life Insurance Policies:

Life insurance is one of the most critical insurance products that people need, and it offers a high commission rate for POSPs. You can sell term, whole, or universal life insurance policies to customers based on their needs & budget.

2. Sell Health Insurance Policies:

Health insurance is another critical insurance product that offers a high commission rate for POSPs. You can sell individual or group health insurance policies, including major medical, short-term health, or Medicare supplement policies.

3. Sell Auto Insurance Policies:

Auto insurance is a mandatory insurance product in most states, which makes it a lucrative product to sell as a POSP. You can sell liability, collision & comprehensive auto insurance policies to customers based on their coverage needs.

4. Sell Homeowner's Insurance Policies:

Homeowner's insurance is another mandatory insurance product that people need, particularly if they have a mortgage. You can sell standard homeowner's insurance policies or offer additional coverage, such as flood or earthquake insurance.

5. Sell Business Insurance Policies:

Businesses need insurance to protect themselves from liability & financial losses. You can sell a wide range of insurance products to businesses, including general liability, commercial property & workers' compensation insurance.

6. Offer Insurance Bundles:

Offering insurance bundles is an excellent way to increase your income as a POSP. You can bundle several insurance policies, such as auto and homeowner's insurance, to offer customers a discounted rate & increase your commission.

7. Offer Upgrades & Add-ons:

You can offer customers upgrades & add-ons to their existing insurance policies to increase your commission.

8. Cross-Sell Insurance Products:

Cross-selling is the practice of selling additional insurance products to customers who already have one or more policies with you. For example, you can cross-sell life insurance to customers who already have health insurance policies with you.

9. Develop a Niche:

Developing a niche is an excellent way to differentiate yourself from other POSPs & increase your income. You can specialize in selling insurance products to a specific demographic or industry, such as selling health insurance to seniors or workers' compensation insurance to construction companies.

10. Build a Referral Network:

Building a referral network is an excellent way to generate new leads and increase your income as a POSP. You can ask satisfied customers to refer their friends & family to you and offer them a discount on their insurance policies.

11. Attend Industry Events:

Attending industry events is an excellent way to network with other professionals and learn about new insurance products and trends. You can attend conferences, seminars & trade shows to meet other POSPs and insurance company representatives.

12. Partner with Other Professionals:

Partnering with other professionals, such as real estate agents or financial advisors, is an excellent way to generate new leads and increase your income as a POSP. You can offer them a commission for referring their clients to you.

13. Create a Website:

Creating a website is an excellent way to establish an online presence and attract new customers. You can use your website to showcase your services, provide information about insurance products & collect leads from potential customers.

14. Utilize Social Media:

Utilizing social media is an excellent way to reach a broader audience & promote your services as a POSP. You can use social media platforms such as LinkedIn, Facebook & Twitter to connect with potential customers & promote your services.

15. Offer Exceptional Customer Service:

Offering exceptional customer service is critical to building a loyal customer base & generating repeat business as a POSP. You can provide personalized service, answer questions promptly & follow up with customers regularly to ensure their satisfaction.