The Ultimate Question: Selling Life or Health Insurance

[reflexions51]

Hello to all members. I have been reading many posts in this forum and by doing it getting a good inside into the insurance business. However, I still need a clear cut advice preferably from veterans (gurus) about which way to go: life or health insurance.

Let me explain my situation. I’m a new agent…actually taken the pre-license course to get the license. Here in GA there is just one license requirement called life and sickness, but I gonna be moving next week back to New Jersey where one needs to have separate licenses.

Now, my native language is Spanish and I think the Latino community is my natural (huge) market up there in northern NJ, where until recently I worked as a Realtor.

If this was all to take into consideration, my decision would be straight forward: sell health insurance to individuals and small business owner as independent agent. However, looking into the near future I would like to minimize (no eliminate) potential drawbacks and the bureaucracy involved with medical records reporting, unpaid claims, charge backs and alike. And I believed this is more commonly found selling heath insurance than selling life insurance. Please, correct me, if I’m wrong!

On the other hand, after selling life insurance for a while, eventually, I would like to come into big business selling annuities securities and so on. And again I believe that after an initial medical exam, selling insurance is more about getting protection, money or both than excessive hassle regarding medical third party companies. Not only that, I read that companies like Massachusetts Mutual, NYL and others (of course being a captive agent) pay you some sort of base salary during the first 6 months which would be handy because I’m short of money.

Guys I’m aware that this are generalities and with your experience I could easily be proven wrong partially or totally, but I thought that before I make a decision you could give me some valuable guidance about which way should I go. It will be appreciated. Thank you.

 

[Winter_123]

Hello to all members. I have been reading many posts in this forum and by doing it getting a good inside into the insurance business. However, I still need a clear cut advice preferably from veterans (gurus) about which way to go: life or health insurance.

Let me explain my situation. I’m a new agent…actually taken the pre-license course to get the license. Here in GA there is just one license requirement called life and sickness, but I gonna be moving next week back to New Jersey where one needs to have separate licenses.

Now, my native language is Spanish and I think the Latino community is my natural (huge) market up there in northern NJ, where until recently I worked as a Realtor.

If this was all to take into consideration, my decision would be straight forward: sell health insurance to individuals and small business owner as independent agent. However, looking into the near future I would like to minimize (no eliminate) potential drawbacks and the bureaucracy involved with medical records reporting, unpaid claims, charge backs and alike. And I believed this is more commonly found selling heath insurance than selling life insurance. Please, correct me, if I’m wrong!

Be sure to talk with at least some agents who are successful with the health insurance market in New Jersey to get more info. I believe that New Jersey is a guaranteed issue state and some of us who live in guaranteed issue states dont have any idea how a health insurance agent could make it in that type of market because we havent seen anyone do it. But there are state variations of course. I am just saying you need to talk to someone who can give you a sense that it can be done in that specific state. Group sales might be different. Also, you have to sign up along with the rest of us to try to figure out what changes in the national level may or may not occur. No one has the answer, although strong opinions abound.

In regard to avoiding some of the hassles on the life insurance side, you will have plenty of leg work to do related to the underwriting unless you sell shlock non-med products so you dont necessarily avoid that by choosing the life sales. A good GA with in-house underwriters and access to the major carriers can make it manageable, although plenty of aggravations will still remain for other reasons.

Short answer: We dont know whether health or life is right for you and even when you talk to local agents, they will bullshit you if they are recruiting. What many new and experienced agents do is talk to local folks and then ask here about whether what they hear makes sense or not.

Good luck to yer.

Winter

 

[HomeService]

For me, personally, it's life insurance all the way. You have to make that choice, but I can tell you for a fact, health insurance will go through some serious changes -and I bet we get some sort of nationalized healthcare program, while life will still be very viable. Life and disability income and supplemental health- will all be around forever.

 

[Mark]

The answer really all depends on you. The truth is either way can work, depending on you. Which one are you better at selling? Find your niche and stick with it. Also, why does it have to be one or the other, and not both?

Try trial and error. See which one is best for you, by trying to do it. You will quickly find which one you are better at.

I enjoy selling life insurance and I have niche markets. That does not mean that I could not do the same thing with Health Insurance. It really all just depends on you and everyone is different.

I think it's easier to get your foot in the door with Health Insurance. But if you can do life insurance, you make more money per client/sale. But again, it depends on which one you are sell better. That does not mean you can't do both. A lot of agents do.

 

[mybeloveds]

why not both?

 

[Alston]

I've sold both health and life insurance. I think that "regular" life insurance is simple enough that you can do both.

Health insurance can get pretty complicated. Advanced life insurance marketing can be complex as well.

By advanced life insurance that I mean estate planning and business life insurance.

You probably want to stay away from 2 complicated products especially as a newbie, but health insurance and non advance life insurance may work well together.

 

[ksigmtsu]

I would suggest to any new agent to start with med supp and final expense. They're the easiest markets to learn. They're the easiest market to close. They're the easiest market to cross sell. It took me twice as long to be comfortable with major medical as it did with Med supp.

You also might consider doing term life mortgage protection insurance in the spanish speaking community, and Assurant's health access plans. You have an interesting market because of your dual language to actually sell a market that is in large part untapped, especially to first-generation immigrants who are trying to protect what little wealth they have been able to acquire since they got here.
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And Winter above had exactly the right strategy to figure out exactly which way to go, try to find a local agent that doesn't try to recruit you and ask them questions.

 

[chrishuggans]

My thinking seems to be different than anyone else on this forum. Don't SELL either. Do your work and become as much of an expert in the field as you can. Build a strong relationship with the people that you choose to come into contact with. Focus on listening to them and provide them with the information that you as the expert feel best solves their problems and needs.
I have not been in the insurance field forever but I have a few years under my belt. I know that every experienced agent does what they feel is right in their heart, but it is our responsibility to make sure that new agents come into our field have a foundation of performing for the right reasons. In time, everyone figures out the ways that they can do what's right and provide for themselves financially, but you must have the right mindset to begin with.
If we all try to maintain that foundation, many of the things we do, like prospecting, may come easier because the public will view us in a different view than the normal "salesmen and saleswomen"
Just my opinions here....would love to see everyone's perspective on this.

 

[Crabcake Johnny]

Avoid selling health. You're not going to sell health in NJ and since your native language is Spanish it will be next to impossible for you to sell over the phone in other states. Stick to life.

 

[moonlightandmargaritas]

My thinking seems to be different than anyone else on this forum. Don't SELL either. Do your work and become as much of an expert in the field as you can. Build a strong relationship with the people that you choose to come into contact with. Focus on listening to them and provide them with the information that you as the expert feel best solves their problems and needs.

Great advice - if you'd like to starve.

Let's be clear: unless you are getting paid a fee as an "advisor" or "consultant", you are a salesperson who only earns compensation if you make a SALE.

If you focus on "educating" people, and providing "information" you'll earn a teacher's wages. If you're OK with that, it's cool - but don't think you'll earn much compensation.

Not advocating high pressure sales to people who don't want what you deal in, but any salesperson (especially new ones) who wishes to survive and thrive has to have a bias for SALES.