If you’re considering a career in health insurance sales, it’s important to be realistic about your chances for success.
Is selling health insurance hard? While selling insurance offers many rewards, it’s not “easy.” If it were, more people would do it. Here are some “cons” you should consider, too.
1: Your earnings depend on your sales success. Most health insurance sales professionals work on commission only – or at least primarily. What that means is if you don’t have a block of business with different effective dates, you could face some lean months. When you’re just getting started, if you’re an independent broker, you may have to work long hours to get your business going and build your reputation.
2: The insurance industry is constantly changing. This can be both a bad thing and a good thing. We discuss the “good” aspect in the previously mentioned “Things to Love” blog post. If you fail to stay up to date on what’s happening with carriers, and what new products may be available, you risk losing the sale to your competitor. Likewise, if there’s a federal or state regulation change that impacts employers, your lack of awareness could undermine your efforts to build a relationship with clients as an industry expert. You need to be constantly aware of new products and services that clients may want and regs that could impact their businesses or their employees.
3: Burnout is an industry issue. A sales career in health insurance (or virtually any industry) can be challenging. Clients are not always easy to deal with; some may view your role negatively. Rejection is a routine part of the job. The burnout rate for first-year insurance agents is high; according to some sources, it tops 90%.
Still interested? As we mentioned, an insurance sales job is not for everyone. However, if you are committed to doing what’s needed, you can earn a good income, enjoy job flexibility, and help folks find the valuable health insurance coverage they need. To get started, read our 6-Step Guide to Getting Your Health Insurance License blog post.
FAQs
Finding new leads can be challenging
Your success as an insurance sales professional is highly dependent on the number and quality of leads you find. Given the fiercely competitive market, there's also a strong chance that the leads you find may already have been contacted by several other insurance agents.
What is hard about selling insurance? ›
Finding new leads can be challenging
Your success as an insurance sales professional is highly dependent on the number and quality of leads you find. Given the fiercely competitive market, there's also a strong chance that the leads you find may already have been contacted by several other insurance agents.
Why is insurance so hard to sell? ›
Client acquisition: Finding potential clients is often the first hurdle in insurance sales. It involves reaching out to people, generating leads, and informing them about the importance of insurance. This task demands substantial time, effort, and strategic planning.
What is the hardest part of being an insurance agent? ›
An agent who is only out to earn a commission, regardless of the needs of the client, is not likely to last long in the business. Agents and brokers who listen carefully to what their clients and prospects say will be able to earn their trust, which is the hardest part of their job.
What is one of the biggest challenges in selling insurance? ›
1. Understanding Client Needs. One of the biggest challenges for insurance sales agents is understanding client needs.
What is the hardest part of selling life insurance? ›
One of the biggest sales challenges in life insurance is getting behind what you're selling, and if you don't believe in the company you are selling for, you're doing yourself and your prospects a disservice. 3. Having to answer all those questions that come up.
Is selling insurance a stressful job? ›
Being an insurance agent can be a rewarding career, but that doesn't mean it doesn't have its share of frustrations. Like any job, selling insurance comes with pressure to perform and job related stress.
How stressful is being an insurance agent? ›
Being an insurance agent is a great career choice, but that doesn't mean it's always easy. Slow sales, angry clients, and tight deadlines can all lead even the most successful agent to feel exhausted and unproductive — in other words, feeling burnt out.
What are the signs of a hard market in insurance? ›
Here are eight characteristics that typically emerge during a hard insurance market:
- Combined ratios are up; return on equity is down. ...
- Sustained and significant rate increases. ...
- Increased reinsurance costs. ...
- Reduced capacity. ...
- Reduction in the number of new market entrants. ...
- Growth of risk transfer options.
A career as a life insurance sales professional can be challenging. The competition is fierce, and you may experience a lot of rejection before a successful sale. Conducting business in the comforts of your home isn't any different. You should be willing to put in the effort for your venture to grow.
Insurance agents succeed when they prioritize their customers' needs over their own profits. The most commonly cited reason insurance agents fail is that they fail to listen to their customers and take the time to find the best product to suit their needs.
Why did I quit being an insurance agent? ›
#1 Low Motivation
To be a thriving insurance agent, you have to want to succeed. Failure to work hard is one of the top reasons people in this industry want to call it quits. While it's true that this job isn't easy, it's also true that it can be very rewarding when you allow it to be.
What is the most challenging part of selling? ›
Top 10 Sales Challenges
- The legacy approach.
- Uncertainty.
- Poor time management.
- Acquiring a first meeting.
- Creating value in a first meeting.
- Being ghosted.
- Accessing the necessary stakeholders.
- Controlling the process.
6 insurance industry risk factors
- Compliance changes. Regulatory dynamics in the insurance sector are never static. ...
- Cybersecurity threats. ...
- Technology changes. ...
- Climate change & other environmental factors. ...
- Talent shortage. ...
- Financial risks.
Insurers rely on builders and third-party administrators (TPAs) to manage contractor relationships. They lack visibility and end-to-end control over the contractors and systems, increasing the risk of the claims process being inefficient, costly, or completely going off the rails.
How hard is it to make a living selling insurance? ›
The career of a life insurance agent is lucrative but involves constant hustling, networking, and many instances of rejection before a sale is ever made. Life insurance agents might be given a small salary to get started but are otherwise primarily dependent on commissions to make a living.
What are the pros and cons of being an insurance agent? ›
As an independent insurance agent, you are basically your own boss. You have the freedom to decide how you want to run your business. On the flip side of that, however, you won't be given paid time off or sick days. The same goes for holidays.
