What Is the Best Insurance to Sell Online?
There are just about every kind of insurance products out there for literally every type of person and situation. But not all insurance is created equal – some products are better to be sold online than others. In this article, I will explain why this particular type fits into the online context – by looking into the demand, entry barrier and the potential income.
What is the best insurance to sell online?
Health insurance could be the best insurance to sell online. A commission can be earned by promoting health insurance companies through affiliate programs. The commission can range from $5-10 per lead and $10-$160 per successful application. This means a commission can be earned even without having people actually buying the insurance.
Selling insurance purely online allows you to skip the traveling, call-calling, door-knocking, networking and so on, which are common practices in the century-old industry.
Not only is it for insurance agents and brokers, but it could also be a new stream of side income if you have a group of online followers who are health conscious.
Who buys health insurance?
Health insurance is not cheap. This may drive some people to go without it and hope that they may never get sick.
Everybody needs health insurance. Some state governments will penalize you if you go without health insurance for over three months.
It is an investment that people will spend some time to research on. And if you run a blog or have a group of followers in the health or fitness-related niche, you can add value by giving them helpful information to let them make better decisions.
Individuals and business owners buy health insurance to cover their medical expenses.
People who are unemployed or self-employed, work part-time, starting a business or have recently retired may also be potential buyers. Those with an employer who doesn’t offer health insurance as part of their employee benefits program may also be looking at purchasing their own health insurance plan.
Business owners will need to shop for health insurance for their employees as part of the remuneration package or to fulfill the legal requirements in some states.
Why health insurance and not any other insurance?
Emergencies happen all the time, and everyone needs health insurance. In fact, it is the most popular type of insurance being sold.
In 2018, the total amount of private health insurance sold was $919.6 billion. That is about 1.5 times the size of P&C insurance (consists primarily of auto, homeowners and commercial insurance combined), which amount to $618.0 billion in the same year.
The average annual premiums in 2019 are $7,188 for personal coverage and $20,576 for family coverage. Premiums of health insurance have been on a steady rise by 4-5% per year.
Compared to the ticket size of term life insurance auto insurance, home insurance or pet insurance, that’s enough money for people to do some research before they commit. People would certainly need guidence to help them make better decisions. And that’s where you can add value by providing helpful content.
Why selling health insurance?
To answer this question, we need to understand how health insurance fits into the online context to make it a better choice than other types of insurance. Here are 6 reasons you may consider:
1. It’s easy to set up
The entry barrier to sell insurance online is way lower than setting up an insurance company online. It works just like selling any other services by referring people to sign up. (e.g. email management software)
All you need to do is to sign up for affiliate programs where they track the people you send to their websites. It is free and easy to set up. They pay you either for a submitted quote or a completed application.
2. You can earn multiple times from one person
As said, some carriers will pay you a commission solely for a quotation, which is very easy as the price is for sure the first thing people would like to check.
And chances are they would get quotes for more than one product from more than one insurance company. So you may earn multiple commissions from just one single person you send over to different carriers.
3. Anyone can do it
You don’t even have to be an insurance agent or broker to send traffic to an insurance website. Anyone who is willing to create good content that helps your audience choose the best product can do just as well.
But, of course, it will be more convincing if you are an insurance agent or broker because people are convinced that you have the knowledge to recommend the right product for the right people.
4. There are always better offers
Health insurance is a competitive business. But this can be an advantage for sellers/referrers because there are always better offers and newer products. You will never run out of things to say.
Big players with strong brand recognition will make your pitch easier. And new disruptors who emerge with the missions to make health insurance more user-friendly will also inspire you with new selling angles. There is always something for everyone.
5. The one-to-many potential
Parents choose plans for their underage kids. And middle-age adults may also need to help their senior parents to find suitable plans as well.
So if your audience falls in the age group of 30s to 50s, they are likely to get quotes and shop for their family.
6. People switch plans
People’s circumstances change. Their health, income, jobs status and family situations don’t stay the same year after year.
Whether they are looking for a health insurance plan with the most suitable coverage or shopping around for better deals, they will need to seek for guidance to make informed decisions.
Who should sell health insurance online?
Health insurance might not be the most simple insurance product to sell. And that’s why a lot of people need help navigating through the features and benefits, especially for first-timers.
Let’s see who are most likely to get it right:
Anyone in the health, wellness, or fitness-related niche: If you already have a group of health-consious followers, they will need advice on health insurance. And why not leverage this relationship you already have and create a new stream of income with health insurance?
Anyone in the personal finance or money-saving niche: At the end of the day, health insurance is an investment to save future expenses on costly medical bills. As we mentioned earlier medical bill can cost people’s home. Promoting health insurance fit perfectly in your niche as long as you can teach people how to save more money with it.
Insurance agents/brokers or marketers: Whether your expertise is in health insurance or not, your knowledge and background in the insurance industry will better differentiate yourself. It will be a no-brainer for you to explain the fine prints and jargons to help your prospects to make better decisions when choosing the right overage.
Even if you are not an expert, you can take a first-person or user approach. You may share your user review on the buying process, customer service or even a claim experience.
Or you may write about what you learnt from comparing the product features from different carriers. As long as you create value (by helping people to save time or save money), people will appreciate it and trust that as their guide.