Which Type of Insurance Has the Most Potential to Make $

[supersupps]

I know that when you start selling insurance, final expense and or medicare is a good place to start. My question is where are the big bucks to be made? Is it with annuities? life? other? Just curious. Not looking for a recruiter, just want to know where to aim in 5 years or so. thanks

 

[GAHEALTH]

I know that when you start selling insurance, final expense and or medicare is a good place to start. My question is where are the big bucks to be made? Is it with annuities? life? other? Just curious. Not looking for a recruiter, just want to know where to aim in 5 years or so. thanks

unless you are selling a lot of annuity cases that are in the $10,000's (i.e. $75K+) most annuities will not pay squat. I have seen from 3%-12%. Let's say you sold $1.5M and averaged 5.5% - that is about $86K.

WL, IUL, etc - not FE is where the money is for fewer cases. Yes you can get high commission % on term policies - but you have to sell a LOT of them to make money. Average premium /mo may be $45. So let's just make the math easy 100% FYC. That case would be worth about $580. Now let's say you sold IULs and average premium was $3200/yr and you were on a 85% FYC - that is $2720.

But you need to do what is right for the customer - not your bottom line. If a term is the better choice for the client - that is what he needs.

Can you make more $ on term - yes. If appropriate, you can add things like Return of Premium, CI rider and DI rider - that will obviously make the monthly premium more that $45...probably to $120 a month or $1440/yr - to make a $150K a yr you would still need to write about 105 cases a year and get them to all be approved etc...assuming you had a 100% contract...or aout one case every 3 days.

 

[WinoBlues]

Good numbers.


One more group of term or dialed down GUL clients that are higher dollar. Age 55+. Sell a 60 year old at tbl2 or a 65 year old at preferred a $500,000 + term to replace the term that they bought 10 - 20 years ago. Convertible term is better for the agent long term. Not as many out there, as a lot of companies are moving to TUL.

Just my two cents.

unless you are selling a lot of annuity cases that are in the $10,000's (i.e. $75K+) most annuities will not pay squat. I have seen from 3%-12%. Let's say you sold $1.5M and averaged 5.5% - that is about $86K.

WL, IUL, etc - not FE is where the money is for fewer cases. Yes you can get high commission % on term policies - but you have to sell a LOT of them to make money. Average premium /mo may be $45. So let's just make the math easy 100% FYC. That case would be worth about $580. Now let's say you sold IULs and average premium was $3200/yr and you were on a 85% FYC - that is $2720.

But you need to do what is right for the customer - not your bottom line. If a term is the better choice for the client - that is what he needs.

Can you make more $ on term - yes. If appropriate, you can add things like Return of Premium, CI rider and DI rider - that will obviously make the monthly premium more that $45...probably to $120 a month or $1440/yr - to make a $150K a yr you would still need to write about 105 cases a year and get them to all be approved etc...assuming you had a 100% contract...or aout one case every 3 days.

 

[0b1kanobee]

Not the answer you want to hear but IMO it is wherever you can find your niche.
If I had to pick just one where I had clients just lining up for me to help them and I was a pro in that area of insurance, it would be annuities for me.

 

[Frank Stastny]

I think it depends on whether you are looking at only first year commission or if you want to build a book of business that will pay enough renewals so in time so you don't have to bust your butt on a daily basis.

 

[Newby]

I would not start out in one type if your heart is to do something different.

Figure out what you want to do and work under someone who is already successful at it.

 

[ksigmtsu]

I am of the opinion after about a year and a half of this that the correct thing to do starting out is build a firm base of a commodity type insurance, like medicare supplement, health or P&C, then work the book you build for cross selling life/annuity. The commodity will pay the bills, is an easy sale, and the life/annuity business is pure profit.

 

[WinoBlues]

I am of the opinion after about a year and a half of this that the correct thing to do starting out is build a firm base of a commodity type insurance, like medicare supplement, health or P&C, then work the book you build for cross selling life/annuity. The commodity will pay the bills, is an easy sale, and the life/annuity business is pure profit.

If I had it to do over again. That is what I would have done. I am actually looking to add the sups and maybe health to replenish my book.

 

[Mark]

SPWL and Annuities...

 

[Tampa Bay Rep]

There are agents who make over a million dollars a year in commissions selling annuities but the wash out rate from failure is great, so while some make it big others make very little. But that's the way it is in all lines of business, there is always someone who will outsell the rest.