There are several different insurance products that you can sell, and each one has its benefits and drawbacks. This article will explore the five most profitable insurance products to sell and how much money you can make from them. Remember that these numbers may vary, depending on your location and the company you work for, but they should give you a general idea of what to expect.
1. Life Insurance
Life insurance is one of the most popular products to sell because it is a necessity for most people. If you are looking to make a lot of money selling insurance, then life insurance is the way to go. The average commission for selling life insurance is between 3-8%, but it can be as high as 10% or more, if you are selling high-end products. The average policy size for life insurance is around $500,000. In the first year of the policy, you will receive the largest portion of the commission; anywhere from 30% to 50%; so, you would make $150,000 to $250,000 in that first year. Remaining payments, called “renewals”, are much smaller and incrementally paid each year for a set number of years.
2. Disability Insurance
Disability insurance is another popular product to sell because it offers peace of mind to breadwinners who are focused on personal protection in case of accidents or health-related issues that might affect one’s income. The average commission for selling disability insurance is between 2-6% yearly, but it can be as high as 10% if you are selling higher-end products. The average policy size for disability insurance is around $5,000, so you can expect to make between $100 and $300 in yearly commissions from selling a single policy.
3. Auto Insurance
Auto insurance is a necessity or requirement by law for most people, which makes it a great product to sell. The average commission for selling auto insurance is between 4-8% yearly, but it can be as high as 10% or more if you are selling higher-end products. The average policy size for auto insurance is around $1,000, so you can expect to make between $40 and $80 in yearly commissions from selling a single policy.
4. Homeowners Insurance
Homeowners insurance is another necessity for most people, which makes it a great product to sell. The average commission for selling homeowners insurance is between 3-8%, but it can be as high as 10% or more if you are selling higher-end products. The average policy size for homeowners insurance is around $1,500 per year, so you can expect to make between $45 and $120 in yearly commissions from selling a single policy.
5. Renters Insurance
Renters insurance is a necessity for people who rent their homes, which makes it a great product to sell. The average commission for selling renters insurance is between 3-8% yearly, but it can be as high as 10% or more if you are selling higher-end products. The average policy size for renters insurance is around $500, so you can expect to make between $15 and $40 in yearly commissions from selling a single policy.
6. Travel Insurance
Travel insurance is a great product to sell to people who are planning to travel. The average commission for selling travel insurance is between 3-8% yearly, but it can be as high as 10% or more if you are selling higher-end products. The average policy size for travel insurance is around $1,000, so you can expect to make between $30 and $80 in yearly commissions from selling a single policy.
7. Business Owner’s Policy (BOP)
A business owner’s policy (BOP) is a great product to sell to business owners. The average commission for selling a BOP is between 3-8% yearly, but it can be as high as 10% or more if you are selling higher-end products. The average policy size for a BOP is around $2,500 yearly, so you can expect to make between $75 and $200 in yearly commissions from selling a single policy.
8. Commercial Auto Insurance
Commercial auto insurance is a great product to sell to business owners who have vehicles. The average commission for selling commercial auto insurance is between 4-8%, but it can be as high as 10% or more if you are selling higher-end products. The average policy size for commercial auto insurance is around $1,000 per year, so you can expect to make between $40 and $80 in yearly commissions from selling a single policy.
9. Workers Compensation Insurance
Workers compensation insurance is a great product to sell to business owners who have employees. The average commission for selling workers compensation insurance varies greatly, due to state laws that regulate the insurance in some states and the private industry rates that are offered in other states. Workers compensation is always paid by the employer and, when not offered and regulated by the state, there is room for private insurance agents to offer the coverage to individual companies. The average policy size for a single employee for workers compensation insurance is anywhere from $500 to $5,000 yearly, depending on location and nature of the work-related potential for injury. On average, you could make $150 yearly per single policy if selling workers compensation insurance privately.
10. Event Insurance
Event insurance is a great product to sell to people who are planning events. The average commission for selling event insurance is between 3-8%. The cost for event insurance is typically reasonable and coverage is a one-time policy. Event insurance commissions may be $20 to $55, depending on the total cost of the event.
Conclusion
As you can see, there is a wide range of products that you can offer and a wide range of commissions that you can make from selling them. Hopefully, this article has given you some good ideas about which insurance products to focus on in your own business. Remember to keep an open mind and be willing to learn about the different types of insurance so that you can offer the best advice possible to your clients.