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The Best Types of Insurance to Start Selling

By Matthew King

Written On August 19, 2022

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According to estimates, roughly 70%-80% of new insurance agents fail within their first year.

Are you a new independent insurance agent? 

If you want to maximize your chances of success, you need to pick the right type of insurance to start selling. 

The ideal type of insurance to sell can sometimes depend on personal factors, such as what industries you already have experience in.

However, there are a few insurance types that stand out as top sellers and which can be highly lucrative for agents, both new and experienced. 

Keep reading to find out which types of insurance can be the most profitable.

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Life Insurance

If you're wondering what types of insurance are the most profitable, life insurance is a good pick. Life insurance offers some of the highest commissions in the business. 

Health insurance products offer around 7 - 22% in commissions. Auto insurance yields agents roughly 10% to 15% in commissions. On the other hand, life insurance often pays out up to 100 - 115% in commissions. 

Besides this, some carriers advance agents' commissions when they make a sale.

After this, you will still earn residual commissions. Unless your client lets their policy lapse, you will continue to earn residual commissions for the policy's lifetime. 

Another reason why life insurance can be so profitable is that consumers often place more value on their life insurance policy once they've taken it out than things like home insurance.

Life insurance holds more emotional weight than insurance on possessions such as a home or its contents. 

However, life insurance can be a tough sell. Once you have made a sale, you'll be guaranteed attractive commissions. But closing on a life insurance product can be tricky. 

Most people don't want to face their mortality, and taking out a life insurance policy forces them to do just that. However, with the right insurance sales training, you can successfully market and close on life insurance. 

Final Expense Insurance

Final expense life insurance is another of the most profitable types of insurance to sell. According to pay estimates, life insurance sales agents make an average income of over $102,000 per year

This is substantially more than agents selling regular life insurance. 

In case you didn't know, final expense insurance is one of the many types of life insurance you can sell. Final expense is a form of whole life insurance.

Income estimates put the average income of a regular life insurance agent at just over $84,000. This is almost $20,000 less than the average income for final expense life insurance sales agents.

Like term life insurance, final expense insurance can be a delicate sell. Selling any type of life insurance means you have to broach the topic of death.

However, final expense insurance is a vital coverage type. Survey results reveal that many Americans over 65 have less than $1,000 put aside for funeral expenses. 

You can see significant success as an agent if you can sell on the necessity and wisdom of covering their final costs ahead of time via a life insurance policy. 

Another advantage of final expense insurance is that it's a relatively simple insurance type. While there are numerous different packages and carriers, final expense isn't inherently complicated. This makes it a good option for new agents who are starting out.


 

Pro Tip: Besides this, you'll also need to be able to generate quality leads to work with. If you're just getting started and aren't sure how to generate leads or successfully sell final expense insurance, we can help. Visit our final expense page to learn more.

Commercial Insurance

Commercial insurance products are another lucrative line. Agents who sell commercial insurance can often net higher earnings than those specializing in consumer-focused insurance products. 

One reason why commercial insurance can be so profitable is that the overall policy value is usually relatively high.

However, commercial insurance products can be quite complex. To serve your clients and meet with success as an agent, you have to know your products inside out. 

If you want to sell commercial insurance as a new agent, you will need to invest time in researching the commercial insurance market and the individual products you're going to sell. 

Educating yourself on individual products is imperative no matter which types of insurance you're selling. When it comes to commercial insurance, you'll also need to have a good understanding of what commercial operations require in terms of insurance and what the best solution is for their individual functions.  

If you're just starting out, commercial insurance probably isn't the best insurance type to begin selling right away. But it is one you can educate yourself on and maybe branch into as you grow more confident, especially if you have other experience with commercial operations you can draw on.

Property and Casualty Insurance

Property and casualty insurance is another type of insurance that many people need. Most people who own property need to have it insured. 

If you're looking for a large client pool to tap into, property and casualty insurance could be an excellent option to look into. Be aware, however, that consumers tend to flock to low premiums for this insurance type, so you won't necessarily get big payouts from each insurance sale, but over time your commissions can add up. 

Health Insurance

Health insurance is another good option to consider, especially if you are a new agent. Just like any other type of insurance, you will need to devote some time to learning about the individual products and what needs they serve. 

Most types of health insurance commissions are not as high as final expense life insurance. However, health insurance and Medicare insurance are something that just about everybody needs.

Health insurance is also a complicated thing to navigate for most consumers. If you can serve your leads well and truly help them find the best health insurance products for their needs and budget, you'll meet with success.

Sell Multiple Types of Insurance Through TR King

These are some of the types of insurance that offer agents the best returns. However, not all of them are suited to new agents. Also, what works well for one agent might not be as lucrative for another. 

The key to success is to try out a couple of different types of insurance and see which performs the best for you. Have you yet to get contracted?

If yes, you need an FMO like TR King in your corner that will allow you to contract with various carriers and sell multiple types of insurance. 

We facilitate easy contracting and instant vesting, and we support all of our agents with free tools, resources, and mentoring.

Ready to get contracted? Get appointed today through our ultra-quick onboarding process. 

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Matthew King


Matthew King is a co-owner of TR King Insurance Marketing. When he's not creating processes, content, developing training, and implementing digital marketing strategies, he likes to immerse in gaming with his wife and friends.

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