How to start a Life Insurance Brokerage Business?


How to start a life insurance brokerage  business plan template

Are you interested in starting your own Life Insurance Brokerage Business?

Starting a life insurance brokerage business can be a rewarding and profitable way to become a self-employed insurance agent. As a life insurance broker, you will work with clients to find the best life insurance policy for their needs and budget. To get started, you will need to obtain a life insurance broker license from your state. Once you have your license, you will need to find an insurance carrier that is willing to work with you. Once you have found an insurance carrier, you will need to complete training on their products and services. After you have obtained your license and completed training, you will be ready to start marketing your life insurance brokerage business. You can market your business through online advertising, word-of-mouth, or by working with other businesses that sell life insurance products. If you are interested in starting a life insurance brokerage business, follow the steps outlined in this guide to get started.
Business Plan
When starting any business, it is important to have a clear and concise business plan. This document will serve as your road map, helping you to make important decisions along the way. Here are a few key elements that should be included in your life insurance brokerage business plan:
1. Company overview: Give a brief description of your company, including its history (if applicable), mission statement, and any other relevant information.
2. Market analysis: Research the life insurance market in your area and identify your target customers. What needs does this market have that your company can address?
3. Services offered: What life insurance products and services will you offer? How will you differentiate your offerings from those of other brokerages?
4. Sales and marketing strategy: How will you generate leads and convert them into customers? What marketing channels will you use?
5. Financial projections: Estimate your start-up costs, expected revenue, and profitability over the next few years. Include a break-even analysis to determine when your business will become profitable.
6. Management team: Introduce the members of your management team and their qualifications.
7. Risk factors: Be honest about the risks involved
Target Market
When you start a life insurance brokerage, you need to identify your target market. This can be individuals, families, businesses, or a combination of these. Once you know who your target market is, you can begin to develop marketing strategies to reach them. One way to reach your target market is to create a website and blog that provide information about life insurance and the benefits of having a policy. You can also use social media to connect with potential customers and build relationships. In addition, consider speaking at local events or hosting informational seminars to attract new clients.
Business Model
If you're considering starting a life insurance brokerage, there are a few things you need to know about the business model. Here's a quick rundown of how a life insurance brokerage works:
1. You'll need to obtain a license to sell life insurance in your state. Each state has different requirements, but you'll generally need to take a test and background check.
2. You'll need to find an insurance carrier to partner with. This is the company that will actually provide the life insurance policies to your clients. You'll work with the carrier to determine what products they offer and how to market them to your clients.
3. You'll need to build a client base. This can be done through networking, referrals, and marketing. You'll need to find potential customers and convince them that you can offer them the best life insurance coverage for their needs.
4. You'll need to stay up-to-date on the latest life insurance products and industry changes. This will help you better serve your clients and find new opportunities for your business.
5. You'll need to be prepared for the administrative side of running a business, including billing, taxes, and compliance. Starting a.
Competitive Landscape
When it comes to starting a life insurance brokerage business, it's important to understand the competitive landscape. There are a few key players in the industry, and it's important to know who they are and what they do. The first player in the space is the insurance company. The insurance company is the one who actually underwrites and issues the life insurance policy. They are also the ones who handle claims and payouts. The second player in the space is the broker. The broker is the one who works with the customer to find the right policy for their needs. They also help with the paperwork and process of getting the policy in place. The third player in the space is the agent. The agent is the one who sells the policy to the customer. They work with the customer to find the right policy and help them with any questions they have. The fourth player in the space is the financial advisor. The financial advisor helps the customer understand how life insurance works and how it can be used to meet their financial goals. They also help with the paperwork and process of getting the policy in place. The fifth player in the space is the independent agent. The independent agent is not affiliated with
Costs & Pricing Strategy
There are a few key things you need to take into account when pricing your life insurance brokerage services. The first is the cost of the insurance itself. The second is the cost of any additional services you provide, such as financial planning or estate planning. Finally, you need to consider your overhead costs, such as office space, marketing, and employee salaries. The best way to price your services is to start by calculating the cost of the insurance itself. You can do this by getting quotes from different insurance companies. Once you have the quotes, you can add a markup to cover your costs and make a profit. Next, you need to consider the cost of any additional services you offer. If you provide financial planning services, for example, you will need to charge a higher rate to cover the cost of your time and expertise. The same goes for estate planning or any other specialized services you offer. Finally, you need to take into account your overhead costs. This includes things like office space, marketing, and employee salaries. You will need to make sure that your prices are high enough to cover these costs and still make a profit. Pricing your life insurance brokerage services can be
Forming a Legal Entity
If you want to start a Life Insurance Brokerage business, you will need to form a legal entity. This will protect you from personal liability and help you raise money for your business. You can choose to form a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each type of entity has its own pros and cons, so you will need to choose the one that is right for your business. If you are the only owner of your business, a sole proprietorship may be the best option. This type of business is easy to set up and you will not have to deal with much paperwork. However, sole proprietorships offer no personal liability protection, which means that you could be held responsible for debts incurred by your business. Partnerships are similar to sole proprietorships in that they are easy to set up and offer no personal liability protection. If you decide to form a partnership, you will need to choose a business partner who you can trust and who has complementary skills. It is important to have a written partnership agreement that outlines each partner's roles and responsibilities. A limited liability company (LLC) offers personal liability protection and is a good option for a small group of founders.
Opening a Business Bank Account
When you’re ready to start your Life Insurance Brokerage business, one of the first steps is to open a business bank account. This will help you keep your personal and business finances separate and will make it easier to track your expenses and income. To open a business bank account, you’ll need to have the following information and documents:
-Your business name and address
-Your Social Security number or Employer Identification Number (EIN)
-A list of the owners, officers, and directors of the company
-Articles of incorporation or a business license
-A voided check or deposit slip from the account you’ll be using for your business
Once you have all of the required information and documents, you can visit your local bank or credit union to open a business checking account.
Setting up Business Accounting
If you're starting a Life Insurance Brokerage business, one of the first things you need to do is set up your business accounting. This will ensure that you're keeping track of your finances and that you're complying with any financial regulations that apply to your business. Here's a quick guide to setting up your business accounting:
1. Choose an accounting software. There are many different accounting software packages available, so do some research to find one that will suit your needs.
2. Set up your chart of accounts. This is a list of all the categories of income and expenditure that you will track in your accounting system.
3. Set up your bank account. You will need a business bank account to manage your finances effectively.
4. Keep track of your income and expenditure. Make sure you keep accurate records of all money coming in and going out of your business.
5. Prepare and file your tax return. Once a year, you will need to file a tax return for your business. Make sure you keep on top of this so that you don't miss the deadline
Setting up Business Insurance
As a business owner, it is important to protect your company with the proper insurance. When setting up a Life Insurance Brokerage business, you will need to consider the following types of insurance:
-Product liability insurance: This will protect you in the event that a product you designed and printed causes injury or damage.
-Professional liability insurance: This will protect you in the event that a client suffers damages as a result of your work.
-Business property insurance: This will protect your equipment and premises in the event of damage or theft.
-Business interruption insurance: This will protect you in the event that your business has to stop operations due to a covered event.
-Employee dishonesty insurance: This will protect you in the event that an employee steals from your business.
Speak with an insurance agent to determine which policies are right for your business
Setting up a Business Website
If you want to start a Life Insurance Brokerage business, one of the first things you need to do is set up a website. This will be your online home base, where potential customers can learn more about your business and what you have to offer. There are a few key things you need to include on your website:
-An About page: This is where you can tell your story and give potential customers a sense of who you are and what you stand for.
-A portfolio: Showcase your best version on your website so that potential clients can see your work.
-A contact page: Make it easy for people to get in touch with you by including your email address and/or social media links.
-Pricing information: Let visitors know how much you charge for your services.
By having a well-designed website, you’ll be able to attract more customers and grow your Life Insurance Brokerage business
Obtaining the Necessary Permits
If you're starting a life insurance brokerage business, you'll need to obtain the necessary permits from your state. Each state has different requirements, but you'll typically need to get a license from the Department of Insurance. You may also need to register your business with the Secretary of State's office and get a business license from your local municipality. Check with your state's requirements to see what else you may need. Once you have all the necessary permits in place, you can start marketing your business and looking for clients.
Setting up a Business Number or Appointment Setter
When you’re ready to start your Life Insurance Brokerage business, one of the first things you need to do is set up a business phone number or an appointment setter. You can use a service like Google Voice to set up a business phone number for your Life Insurance Brokerage business. Google Voice will give you a free business phone number that you can use to make and receive calls. Once you have a business phone number, you can start taking calls from potential customers. When you get a call, be sure to take down the customer’s name, contact information, and what they need. Once you have this information, you can give the customer a call back to discuss the project in more detail and give them a quote.

Advertising and Marketing Strategies

There are many effective ways to market a life insurance brokerage business. Content and digital marketing can be used to reach potential clients, while SEO and budgeting are key to ensuring the right message reaches the right audience. Advertising budgets should be planned carefully to ensure maximum ROI.


Successful life insurance brokerages require quality employees who understand the industry and can effectively serve clients. Recruiting and retention strategies should be developed that align with the business' goals and values. Clear job descriptions, duties and expectations should also be established.

Financial Forecasting

Financial forecasting is a vital part of running a successful brokerage business. Developing a financial model, cash flow projections, and budgeting are all key components of this process. Understanding how the business will perform in the short-term and long-term is essential for sustained success.

Risk Management

Risks associated with a life insurance brokerage business should be identified, understood, and managed. Strategies for mitigating risks must be developed in order to protect the business from potential losses or damages.

Technology Requirements

In order to run an efficient brokerage business, specific technology requirements must be met. Software and hardware systems must be integrated in order to streamline processes like client onboarding and policy management.

Regulatory Compliance

A life insurance brokerage business must comply with local laws and regulations in order to operate legally. Understanding and adhering to the necessary compliance measures is essential for avoiding costly penalties and fines.


Building relationships with potential clients, industry partners, and vendors is an important part of running a successful brokerage business. Networking can open doors to new opportunities for growth, as well as foster mutually beneficial relationships with key stakeholders in the industry.

Business Expansion

Scaling a successful life insurance brokerage requires careful planning and strategy development. Finding new markets, exploring opportunities for growth, and leveraging resources are all steps that must be taken in order to expand the business successfully.
The life insurance brokerage business is a great way to earn a living and help people at the same time. It is important to remember that this is a business, and like any business, it takes time, effort, and dedication to be successful. There are many things to consider when starting a life insurance brokerage, but if you are willing to put in the work, the rewards can be great.

Why write a business plan?

A business plan is a critical tool for businesses and startups for a number of reasons:
  • Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
  • Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
  • Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
  • Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
  • Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
  • Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
  • Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
  • Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
  • Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
  • Business plans allow you to position your brand by understanding your company’s role in the marketplace.
  • Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
  • Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content


Many people struggle with drafting a business plan and it is necessary to ensure all important sections are present in a business plan:
  1. Executive Summary
  2. Company Overview
  3. Industry Analysis
  4. Consumer Analysis
  5. Competitor Analysis & Advantages
  6. Marketing Strategies & Plan
  7. Plan of Action
  8. Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect Life Insurance Brokerage business plan, fill out the form below and download our Life Insurance Brokerage business plan template. The template is a word document that can be edited to include information about your Life Insurance Brokerage business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning


With the growth of your business, your initial goals and plan is bound to change. To ensure the continued growth and success of your business, it is necessary to periodically update your business plan. Your business plan will convert to a business growth plan with versions that are updated every quarter/year. Avvale Consulting recommends that you update your business plan every few months and practice this as a process. Your business is also more likely to grow if you access your performance regularly against your business plans and reassess targets for business growth plans.


Want a Bespoke Business Plan for your Life Insurance Brokerage Business?

Our Expertise


Avvale Consulting has extensive experience working with companies in many sectors including the Life Insurance Brokerage industry. You can avail a free 30-minute business consultation to ask any questions you have about starting your Life Insurance Brokerage business. We would also be happy to create a bespoke Life Insurance Brokerage business plan for your Life Insurance Brokerage business including a 5-year financial forecast to ensure the success of your Life Insurance Brokerage business and raise capital from investors to start your Life Insurance Brokerage business. This will include high-value consulting hours with our consultants and multiple value-added products such as investor lists and Angel Investor introductions.


About Us


Avvale Consulting is a leading startup business consulting firm based in London, United Kingdom. Our consultants have years of experience working with startups and have worked with over 300 startups from all around the world. Our team has thousands of business plans, pitch decks and other investment documents for startups leading to over $100 Million raised from various sources. Our business plan templates are the combination of years of startup fundraising and operational experience and can be easily completed by a business owner regardless of their business stage or expertise. So, whether you are a budding entrepreneur or a veteran businessman, download our business plan template and get started on your business growth journey today.

Life Insurance Brokerage Business Plan Template FAQs

What is a business plan for a/an Life Insurance Brokerage business?

A business plan for a Life Insurance Brokerage business is a comprehensive document that outlines the goals, strategies, and financial projections for starting and operating a life insurance brokerage firm. It serves as a roadmap for entrepreneurs, helping them define their business concept, target market, competition, marketing strategies, and operational procedures. The business plan also includes detailed financial projections, such as startup costs, revenue forecasts, and profit margins, which are crucial for attracting investors or securing financing. Additionally, the plan may outline the organizational structure, staffing requirements, and regulatory considerations specific to the life insurance industry. Overall, a well-crafted business plan is essential for guiding the growth and success of a life insurance brokerage business.

How to customize the business plan template for a Life Insurance Brokerage business?

To customize the business plan template for a Life Insurance Brokerage business, follow these steps:

1. Review the template: Start by thoroughly reviewing the template to understand its structure and content. This will help you identify sections that need customization.

2. Update executive summary: Begin by modifying the executive summary to reflect your specific goals, vision, and target market. Highlight what sets your Life Insurance Brokerage business apart from competitors.

3. Company description: Describe your Life Insurance Brokerage business, its mission, and the services you will offer. Customize this section to emphasize your expertise and experience in the industry.

4. Market analysis: Conduct market research to identify your target market, competition, and industry trends. Customize the market analysis section to reflect your findings and explain how your Life Insurance Brokerage business will thrive in the market.

5. Services and pricing: Modify the section that outlines the services you will offer as a Life Insurance Brokerage business. Tailor it to showcase the unique value you provide to clients and adjust pricing details based on your business model.

6. Marketing and sales strategy: Develop a comprehensive marketing and sales strategy that suits your target market. Customize this section to outline your plans for lead generation, networking, advertising, and partnerships.

7. Operations and management: Describe your operational setup, staffing requirements, and management structure. Customize this section to demonstrate how your Life Insurance Brokerage business will effectively and efficiently serve clients.

8. Financial projections: Adjust the financial projections section to reflect your specific revenue

What financial information should be included in a Life Insurance Brokerage business plan?

A comprehensive Life Insurance Brokerage business plan should include the following financial information:

1. Start-up costs: This section should outline all the expenses required to start the business, including licenses and permits, office space, equipment, marketing, and initial inventory.

2. Revenue projections: Provide an estimate of the revenue the business is expected to generate over a specific period, typically five years. This can be based on industry data, market research, and projected sales figures.

3. Expense forecasts: Detail all the anticipated expenses involved in running the Life Insurance Brokerage business. This may include employee salaries, rent, utilities, insurance, marketing costs, professional fees, and any other operational expenses.

4. Break-even analysis: Determine the point at which the Life Insurance Brokerage business is expected to cover all its expenses and start generating profits. This analysis helps to understand how much revenue is needed to achieve profitability.

5. Profit and loss statement: This financial statement provides an overview of the business's revenues, expenses, and net income over a specific period, typically on a monthly or annual basis. It helps evaluate the overall financial performance of the business.

6. Cash flow projections: A cash flow statement shows the inflow and outflow of cash in the business. It helps assess the business's ability to pay its bills, manage inventory, and cover other expenses. Cash flow projections should cover at least the first year of operations.

7. Balance sheet: This financial statement provides a snapshot of the business's assets,

Are there industry-specific considerations in the Life Insurance Brokerage business plan template?

Yes, the Life Insurance Brokerage business plan template includes industry-specific considerations. These considerations are tailored to the unique characteristics and requirements of the life insurance brokerage industry. The template includes sections on industry analysis, market trends, regulatory requirements, competition analysis, and marketing strategies specific to the life insurance brokerage sector. It also includes financial projections and key performance indicators that are relevant to this industry. Overall, the template is designed to provide a comprehensive and accurate representation of the life insurance brokerage business, taking into account its specific industry requirements.

How to conduct market research for a Life Insurance Brokerage business plan?

Conducting market research for a Life Insurance Brokerage business plan is crucial for understanding your target market, competition, and potential opportunities. Here are some steps you can follow to conduct market research:

1. Define your target market: Identify the specific demographic, geographic, and psychographic characteristics of your ideal customers. This will help you tailor your services and marketing efforts accordingly.

2. Analyze industry trends: Stay updated on the latest trends and developments in the life insurance industry. Understand factors such as consumer preferences, new technologies, regulatory changes, and emerging market segments.

3. Identify your competitors: Research and analyze other life insurance brokerages operating in your target market. Identify their strengths, weaknesses, pricing strategies, target customers, and unique selling propositions (USPs). This will help you differentiate your business and develop a competitive advantage.

4. Customer surveys and interviews: Conduct surveys or interviews with potential customers to gather insights on their preferences, needs, and pain points when it comes to life insurance. This primary research will provide valuable data for developing your business strategy.

5. Utilize secondary research: Explore industry reports, market studies, and government data to gather information on market size, growth rates, customer demographics, and key industry statistics. This data will support your market analysis and help you make informed decisions.

6. Analyze online presence: Assess the online presence of your competitors and potential customers. Study their websites, social media accounts, and online reviews to understand their strategies, customer satisfaction levels, and

What are the common challenges when creating a business plan for a Life Insurance Brokerage business?

When creating a business plan for a Life Insurance Brokerage business, there are several common challenges that entrepreneurs may face. These challenges include:

1. Understanding the industry: It is crucial to have a deep understanding of the life insurance brokerage industry, including the current market trends, customer needs, and regulatory requirements. Lack of industry knowledge can hinder the development of a comprehensive and realistic business plan.

2. Identifying target market: Identifying and defining the target market is essential for a life insurance brokerage business. It can be challenging to determine the specific demographic, psychographic, and behavioral characteristics of potential customers. Thorough market research is necessary to accurately identify and understand the target market.

3. Building a competitive advantage: The life insurance brokerage industry is highly competitive, with numerous established players. Creating a unique selling proposition and identifying a competitive advantage can be difficult. Identifying what sets your business apart from competitors and how you plan to attract and retain customers is vital.

4. Developing effective marketing and sales strategies: Developing effective marketing and sales strategies to reach and acquire customers can be challenging in the life insurance brokerage industry. Determining the most suitable channels, messaging, and budget allocation requires careful consideration and research.

5. Setting realistic financial projections: Creating accurate and realistic financial projections can be a challenge, especially for new businesses. Estimating revenue, expenses, and profitability can be challenging due to various factors, including market conditions, competition, and customer acquisition costs. It is important to conduct thorough research and seek professional assistance

How often should I update my Life Insurance Brokerage business plan?

It is recommended to update your Life Insurance Brokerage business plan at least once a year. However, it is also important to review and revise your plan whenever there are significant changes in your business, such as new goals, market conditions, or regulatory requirements. Regularly updating your business plan ensures that it remains relevant, accurate, and aligned with your current objectives and strategies.

Can I use the business plan template for seeking funding for a Life Insurance Brokerage business?

Yes, you can use the business plan template for seeking funding for a Life Insurance Brokerage business. A well-written and comprehensive business plan is essential for attracting investors and lenders. The template will guide you in creating a professional and convincing document that highlights the market potential, financial projections, competitive analysis, marketing strategies, and other crucial aspects of your Life Insurance Brokerage business. By providing a clear and detailed plan, you increase your chances of securing the necessary funding to start or grow your business.

What legal considerations are there in a Life Insurance Brokerage business plan?

When creating a Life Insurance Brokerage business plan, there are several legal considerations that should be taken into account. These may vary depending on the specific jurisdiction in which the business will operate, but here are some common legal considerations:

1. Licensing and Regulation: Life insurance brokerages typically require licenses to operate legally. Research the regulatory requirements in your jurisdiction and ensure that you and your employees obtain the necessary licenses and certifications.

2. Compliance with Insurance Laws: Familiarize yourself with the specific insurance laws and regulations that govern the sale and distribution of life insurance in your jurisdiction. Ensure that your business plan outlines how your brokerage will comply with these laws to avoid penalties and legal issues.

3. Privacy and Data Protection: Life insurance brokerages handle sensitive personal and financial information of clients. It is important to comply with data protection laws and regulations to safeguard this information. Develop policies and procedures to protect client privacy and ensure compliance with applicable laws, such as the General Data Protection Regulation (GDPR) if operating in the European Union.

4. Contractual Obligations: Your business plan should address the legal aspects of contracts with both clients and insurance companies. Outline the terms and conditions under which your brokerage will enter into agreements, including commission structures, obligations, and responsibilities.

5. Professional Liability Insurance: Consider obtaining professional liability insurance (also known as errors and omissions insurance) to protect your brokerage from claims related to professional negligence or errors in advice provided to clients.

6. Intellectual Property: If you plan to