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 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. (Source)

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. (Source)

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.

Here are some of the most common health insurance affiliate programs: