Individuals are drawn to sales roles for a variety of reasons. Some are motivated by financial rewards. Others like that the skills needed can often be applied to multiple industries – like working as an account manager, in a sales operations role, or in a client-facing role selling insurance, real estate, financial services, advertising, or any of a variety of other sorts of industries.
If you’re considering a sales career, insurance sales can be very rewarding. Below are five things to love about selling health insurance.
1: People need what you’re selling. According to the Peter G. Peterson Foundation, the United State has one of the highest costs of health care in the world. In 2021, U.S. health care spending reached $4.3 trillion. That amounts to an average of nearly $13,000 per person. In contrast, the average cost of health care per person in the world’s other wealthy countries is about half as much. Health insurance helps protect Americans from dealing with the high costs of care on their own.
Insurance is not always easy to understand. That’s why individuals, families, company owners and managers frequently seek help from a broker when making health insurance purchasing decisions. You can make a real difference in people’s lives, whether you’re focused on Individual & Family Plan (IFP) sales or group sales (Small Group, Large Group, or both).
There are certain hoops you need to jump through to become a licensed insurance sales professional. You must complete some pre-license training and a background check. But, after you earn your license, and get appointed to sell with one or more companies, you’ll find the job is extremely rewarding.
Working with a varied roster of clients to help them match their needs and budget to available options can be very fulfilling. You’ll be able to help protect their families, businesses, and finances in the event of needed medical care. Even in times of economic uncertainty, the need for health insurance is constant. In fact, offering health insurance to employees is mandated by the Affordable Care Act if your client’s business is an Applicable Large Employer (ALE).
2: The job offers a lot of flexibility. If you become an insurance sales professional, you can usually choose your own work hours – and, very often, your work location. You won’t be tied to your desk working in an office all day. You’ll have the opportunity to get out, interact with others, demonstrate your expertise, and help your customers. You also determine your work-life balance.
You may have the flexibility to decide what you want to sell – Individual or Group, Medical, Dental, Vision, or some combination – and the companies you represent.
If you’re unsure about becoming an independent broker or a captive agent, read our prior blog, Understanding the Difference Between Captive and Independent Health Insurance Agents, for guidance.
3: Your earnings potential is virtually unlimited. Most brokers earn a commission for each It doesn’t matter whether you’re selling IFP or Group. You’ll get paid on every policy sold/person enrolled. The more you sell, the more you earn. Plus, many carriers offer you the potential for added compensation or other rewards (like gift cards and trips) for sales during a specified period or when you bundle one product with another. That’s when you sell more than one line of coverage to a single customer. For example, adding Dental or Vision to Group Medical. Often bundling can deliver savings to the customer, too.
4: The industry is evolving. Customer needs are changing. The insurance industry is changing, too, as it tries to answer the call for new products and services. There are also added and updated regulations affecting the health insurance industry – at both the state and federal levels. Business and individual customers are looking for help from brokers so they can better understand the potential impact – for themselves, their families, their businesses, and their employees.
5: It’s easy to get started. While many insurance brokers may have a college diploma, it’s not a prerequisite. In fact, a lot of successful insurance sales professionals do not have a degree. Word & Brown’s guide, Show Me the Money – Insurance Broker Salary Guide, discusses the degree and non-degree paths to becoming a broker. Download your copy below.
For information on the insurance licenses available and state requirements, visit the California Department of Insurance website or the Nevada Division of Insurance website.
To learn more about the support and services offered by partnering with a general agency, talk with your Word & Brown representative or contact one of our regional offices in California and Nevada.
About the Author: Tawny Friedly is Regional Vice President in the San Diego region for the Word & Brown General Agency.
