Insurance Agent Forum

[cdsnuts]

Hello All,

I've been out of the business for awhile due to some health problems but plan on starting up again soon. My question to the forum is this: What does everyone think is more profitable to sell, Health or Life? I am licensed for both, but spent most of the past five years selling term life. The more I look into the health insurance side of things, the more I like what I see. I know there are alot of variables and each side has its pros and cons, but if you were to GENERALIZE, on the average, what do you think is more profitable?

C-

[xrac]

If you are in the right market I think Life Insurance is much more profitable. Most of the really big insurance producers (think MDRT) I know of do not do health. I think life insurance is a more difficult sell. You know the saying, "health insurance is bought but life insurance is sold". But I think that which market you pursue should depend upon you and what you like and dislike and what youe strengths and weaknesses are. Pick the market that makes the most sense for you. You can make a good living with either if you will work it.

[on1sony]

Why not do both?

[somarco]

As xrac pointed out, it is two different sales.

Some agents are adept at working both sides and can lead with either product, but few are really good at both. The health business in particular is constantly changing.

Here in GA 3 major players have revamped their portfolio in the last 30 days or so. Before the end of the year it is possible for a 4th revision and maybe even one or more "new" carriers.

Even existing players have reworked their underwriting guide several times during the last 12 months which means everything changes. This is not the same market as 12 months ago and will morph even more over the next 12 months.

I lead with health and follow with life but would just as soon not deal with life. I write it if someone asks.

Life is an illogical but emotional sale. Who buys something they won't use? Both life and health are educational sales but life education can take a lot more gestation time, especially if you are dealing with business applications or estate planning.

Health insurance is something everyone agree's is needed so the educational process is much shorter.

Life is usually a much smaller premium but a higher commission. Health is a larger premium but smaller commission.

Health pays renewals, life doesn't.

[fostever]

Health insurance can be very profitable, but you need to be constantly educating yourself on all the aspects of the multitude of plans available and if you don't have a good handle on what to write for a particular client the underwriting process can be horendous and ultimately leaving the client worse off. Life insurance is a less complicated and now it is easier to match clients with the best plan to fit their needs, however not everyone feels the need. I personally like medicare products due to the guaranteed issue aspect and the ability to work mostly daytime appointments and face to face. You still need to know Medicare inside and out, attend compliance meetings, and deal with lock-in. That being said, you'll need to decide what you like best, focus on that and learn the others along the way and maybe cross sell those. The most profitable would be Health due to renewals.