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The Most Lucrative Insurance Products

The Most Lucrative Insurance Products text overlaying image of a graphics with a car a home and a family with hands covering all three

The Most Lucrative Insurance Products text overlaying image of a graphics with a car a home and a family with hands covering all threeIf you’re an insurance agent you probably got into the industry for two main reasons. One reason is to help people protect themselves. The second, and more obvious reason is to make money. Isn’t that the goal for almost every profession? While you might already be an expert at selling one product, have you ever wondered what else is out there? With so many insurance types existing, it’s only natural to think about the profitability and benefits of selling other products. The great thing about being an agent is that you can sell multiple products. Whether you’re wanting to explore new markets, or are simply looking to get some insight, we’re here to help.


When looking at the profitability and benefits of selling specific products, there is a lot to consider. Things like sales potential, the average consumer base and demographics, commissions, and much more is all important. The truth is, it will be hard to tell you exactly how much you might make because the earnings of agents vary so much. With that said, the information that we’ll provide you with will give you an overall glance at multiple products. Hopefully when it’s all said and done, this synopsis helps you to make a more informed decision. 

Life Insurance

Life insurance is arguably the most profitable insurance product. This is mainly due to it having some of the highest commissions in the industry. Life insurance sales can often payout agents up to 100% – 115% commission for the first year. In comparison, auto insurance agents usually only get around 10% – 20% commission. Due to the nature of life insurance policies, agents also earn residual commissions. This means that, as long as a policy isn’t canceled, agents receive commission payouts each year the policy remains effective. Some agents sell a mix of term and permanent policies, which provides them with both short-term and long-term profitability. 


While life insurance sales are oftentimes difficult to close on, there is a large consumer base in need of coverage. First off, you’re not confined to a certain demographic, because people of all ages need life coverage. Everyone from young professionals to parents, up to retired individuals can all show interest in a life policy. This is because life coverage is valued more than many other coverages. Providing protection to your loved ones after an unexpected death holds a lot of emotional weight. Additionally, with life coverage you have a range of products to choose from. This includes term, whole and universal life coverage. Many agents sell a mix of term and permanent policies, which provides them with both short-term and long-term profitability.

Commercial Insurance 

Commercial insurance is another product that is generally regarded as quite profitable. This is evident especially when comparing it against individual consumer insurance products. It’s mainly due to the fact that the total value and price of commercial policies are generally high. Commercial insurance is also easy to market because there are so many different types, and in turn there is a high number of businesses in need. Liability and property & casualty (P&C) are the most common, but there are many other products too. This includes business interruption insurance, workers’ compensation, commercial auto insurance, and more. Additionally, some types of commercial policies, such as workers’ compensation, are required by the state for businesses to have. Needless to say, there are plenty of business owners in the market for a plan.


While not every company will need every type of commercial insurance, the consumer base is large in general. It includes a variety of industries like manufacturing, technology, hospitality, transportation, freighting and much more. With such a range of industries in need and products at hand, agents have lots of flexibility. Many agents have success when carving out their own niche. For example, you may want to deal only with commercial auto, and workers’ compensation. To get even more granular, maybe you only want to target companies using vehicles to operate. While you never want to limit yourself, getting specific in your targeting lets you become an expert in that sector.

Group Health Insurance

Group health insurance is another product that may be worth adding to the arsenal. It is highly attractive to agents due to a variety of factors. The most compelling one is its profitability. When compared to selling individual policies, group insurance is far more lucrative. Simply put, the profit margins are higher, because plans usually cover more people than individual health plans. The demand for group health insurance has also spiked over the last couple of decades. This is due to the fact that more businesses now understand the importance and often high cost of health coverage. Companies that offer employee health coverage, have happier employees, and help their employees pay less. This is because when a group of people are insured, the individual’s premiums will generally be discounted. 


Additionally, most businesses today view health insurance as a cornerstone of their employee benefits package. This allows you to position yourself as a necessary partner, and establish more long-term relationships. Similarly to commercial insurance, the need for group plans spans across a variety of industries. This means you can establish yourself as a trusted expert in a niche market if you want to. Also, group health referrals tend to be high. This is likely because business owners tend to talk with other business owners about what’s working for them. Due to all of these factors, the product is highly marketable, and fosters plenty of room for growth. 

Individual Health Insurance

Individual (under-65) health insurance is a great selling product, serving a wide range of people all over the country. While there are many reasons to sell individual health plans, profitability is a top motivating factor. It can be hard to say exactly how much individual health agents make, because it varies so widely. With that said, it’s known to provide agents with a reliable income since there is a consistent demand year round. In the past 15 or so years agents have been able to maximize profitability with the rise of technology. Leveraging technological tools has streamlined the enrollment and other operational processes significantly.


This ultimately allows agents to take care of more agents in a given day. In turn the profit margins have widened exponentially. While health insurance can still be quite expensive for individuals, changes in recent years have made it more affordable. This is due to the implementation of the Affordable Care Act (ACA), aiming to make healthcare accessible for all people. In general though, this has made individual plans more affordable overall. Agents are able to capitalize on this, since there are now more people in the market for coverage. 


Individual health plans are also highly customizable. This gives you the chance to position yourself as an insurance expert. It also opens up the opportunity for upselling. For example, offering coverages such as dental and vision can provide some additional revenue. When it comes to targeting, consumers range from young adults up to middle-aged families. The wide range of people in need means there will be no shortage in leads for you to work. Additionally, since health insurance is very complex, once they need it, people are usually quick to reach out to agents for help. 


Medicare (health insurance for individuals over 65) is another product that has many selling advantages for agents. The opportunity for high profits with Medicare comes mainly from its growing consumer base. According to the Washington Post, in 2023 one in six Americans are 65 and older. Additionally, when looking at the past years growth, the population size doesn’t look to be decreasing anytime soon. This reason alone is why so many insurance agents decide to sell the product. 


Selling Medicare is also quite an attractive option because there are a variety of plan types. This includes both Medicare Advantage, Medicare Supplement and add-ons like prescription drug coverage. On top of that, like individual health coverage, agents have the chance to offer supplemental coverages. While the consumer base for medicare is just people over the age of 65, agents have found these individuals to be more stable and reliable. This is because many people over 65 are already retired and are well-established. They are also more likely to stay loyal to you if you provide them with good services. Since the healthcare system can be so hard to navigate, especially for older people, the reliance on you will be increased. This gives you the optimal chance to satisfy them and take care of their specific needs. 

Wrapping Up

Selecting the insurance product that fits best with you is a decision that requires thought and strategy. While enjoying what you do is a plus, at the end of the day, we all need a profession that is lucrative. When we look at a variety of factors per each product including sales potential, consumer base, average commissions, and marketability, it provides us with much needed insight. Even if you already have established yourself as an expert for one product, as a licensed agent, you can always adopt another one. In addition to valuing the information we’ve provided, when making these decisions it’s also important to be adaptable and keep up with the latest industry trends. By putting all of these factors together, you will be able to carve out a spot for yourself in the insurance sector and thrive for years to come.


No matter what type of insurance agent you are, it’s always going to be a necessity to meet new consumers. If you are falling short when it comes to this aspect of the business, don’t worry! At Benepath we specialize in providing agents with insurance leads that are exclusive and produced in real-time. Think of us as the connection between you and the thousands of individuals in need of insurance policies. We offer agents both data leads and inbound phone calls in a variety of verticals. This includes individual health, group health, Medicare, life and commercial insurance. If you want to take the next step and see what our leads can do for you, fill out a form or give us a call at 888-684-3121

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Cassandra Love
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