Selling Insurance

Regardless of what most people may think, selling insurance can be one of the most rewarding and profitable ways to earn a living. Everyone is a candidate for some type of insurance because everyone has risks to deal with in their everyday lives. When an agent that cares about people helps them to obtain a policy for protection, there is an instant sense of gratification because an individual or family has obtained protection for some type of risk in their lives.

Selling life insurance

There are many types of insurance since there are many types of risks that the public must deal with. Each type of insurance selling has its pros and cons to deal with for the agent. Life insurance, which is probably one of the most important types of insurance to offer, can be the most rewarding because it helps people deal with the possibility of financial devastation at probably the worst time in their life. Life insurance is also one of the most financially rewarding products to sell as well. Commissions earned are much higher than any other type of insurance product and service responsibilities are negligible.

Selling health insurance and Medicare

Health Insurance and Medicare Supplements can also be a very profitable niche to work in. Although commissions are lower, premiums can be significantly higher and renewals can be earned as long as the policy is in force. Health Insurance and Medicare Supplements also have a minimum service requirement since claims are handled directly by the carriers you represent. This market is also gigantic because everyone needs health insurance unless they are offered it through their employer, which is where selling group benefits to employers comes in. The Medicare Supplement and Medicare Advantage Plan market grows with each new generation aging into retirement. The agents who specialize in this market, the senior market, do very well financially and feel good knowing they are helping their clients deal with an expensive and frustrating part of their lives.

Selling Property & Casualty insurance

Property & Casualty insurance is very popular because in many cases customers will come to you. Anyone who owns and drives a vehicle must insure it and anyone who owns a home with a mortgage must insure it. Although commissions on Property & Casualty insurance are much lower than life and health insurance, the renewal commissions built up over time become an annuity that the agent can draw from for many, many years to come. The book of business is an asset that can be sold when the agent is ready to retire or do something else. This alone brings many agents into the market both captive and independent. Unlike life and health insurance, the P&C insurance business is very service oriented which can cut deeply into an agent’s bottom line. Property and Casualty policyholders are constantly changing vehicles or moving and will take up much of your time with non-revenue activities. The successful P&C agent will need to develop processes to deal with service issues and take advantage of the technology available to decrease the service time needed for their book of business.

Book renewals

Many agents believe that once they build their book to a certain level of renewal commissions, they can then spend less time selling and more time enjoying their lives. Some companies will allow an agent to live off their book renewals but unfortunately most will demand a constant stream of new business to continue with your contract. Insurance sales training programs can really help you get started.

When a new agent makes a decision to enter the insurance business, they should primarily consider what renewal business can earn and begin building their business based on that premise. Getting out every day to make a sale can be motivating and even exhilarating for the young agent building their business, but after years of chasing a sale and finding new leads, the time will come when you decide to take a breath and spend time with the family or doing things other than selling.