While every insurance agent has their specialties and preferences, there are certain types of insurance policies that are known to be incredibly lucrative.
When it comes to insurance sales, it's no secret that some policies bring in more money than others. In this blog, we will take a closer look at some of the most profitable types of insurance sales.
Life insurance policies are one of the most profitable types of insurance policies, and for a good reason. With a life insurance policy, the insurance company offers a death benefit upon the policyholder's death, which can range from tens of thousands to even millions of dollars. However, selling life insurance policies isn’t always an easy task. It can be challenging to convince a client of its benefits, especially if they are younger or don’t have any dependents. However, if you manage to sell life insurance policies, you can earn substantial commissions.
Health insurance policies are another lucrative policy that is on the rise. With the medical industry continuously growing, health insurance plans are becoming more popular with both individuals and companies. The commissions vary based on the type of plan that the client chooses. For instance, selling comprehensive health plans may result in higher commissions than selling basic health plans because the plans' premium cost difference is vast.
Property insurance policies, such as homeowner's insurance, car insurance, and renters' insurance, are also quite profitable. Insurance policies that pertain to property provide an excellent opportunity to earn commissions because most people will need this coverage. These policies offer a range of options, and based on the plan's specifics, the commission rates can vary.
Accidental and disability insurance
Accidental and disability insurance policies can benefit clients who are looking for more specific coverage, such as those in high-risk occupations. Sales from these insurance policies can lead to substantial commissions, which is a big enabler for agents to specialize in them. The commissions typically may be higher than life insurance policies since their premiums tend to be higher. However, the downside is that they tend to be very specific, which means that there may be a limited pool of prospects.
Another potentially lucrative selling policy is annuity sales. Annuities are insurance contracts in which an insurance company provides a lump-sum amount or periodic payments to the policyholder starting on a specific date, usually when they retire. It can offer substantial bonuses, and commission structures for annuities vary widely as policy rates can differ depending on the contract parameters.
In the insurance industry, there are no shortcuts to success. It boils down to the number of policies you can sell and your ability to find qualified prospects. The policies mentioned above are not the only profitable ones. As an agent, it's always wise to keep an open mind and explore different policies to get more leads and increase your chances of earning commissions. Remember, it is the quality (policy features and functionalities) and not quantity that matters when selling insurance policies.