Home-Based disability insurance broker

Insurers pay you commission when a client buys a policy. Clients are typically self-employed workers, small business owners, and professionals such as nurses, dentists and engineers.

Commission on each policy sold, usually a share of the first-year premium, plus smaller renewal commissions on some policies. Income is uneven at first and grows as your client base builds.

• Explaining complex products in plain language
• Sales and follow-up
• Organized record keeping and compliance
• Patience with long decision cycles

• A state producer license is required to sell insurance, check your state department of insurance for exam, fingerprinting, fees and continuing education
• You usually need separate non-resident licenses to sell to clients in other states
• Errors and omissions insurance is commonly expected by carriers, check what each one requires
• Commission can be charged back if a client cancels early, so plan for uneven cash flow
• Insurance advertising and sales rules are strict, check your state's rules and each carrier's compliance guidelines
• Underwriting can decline or limit cover for some clients, so set expectations early

Estimates suggest startup costs are typically around $1,000 to $5,000, depending on your licensing fees, insurance, tools and how you find clients. Treat this as a rough guide and check current costs in your state.

Estimated monthly revenue is typically around $1,000 to $6,000, depending on how many policies you place and how long clients take to decide. Estimates start from about 20 hours a week. Commission can be charged back if clients cancel early.

Check that a state producer license is required, and ask your state department of insurance about the exam, fingerprinting, fees and continuing education. Also check non-resident licenses for other states, carrier errors and omissions requirements, and advertising and sales rules.