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How Profitable is Selling Insurance and Keeping an Insurance Book?

Selling insurance to make money can be a bright prospect for many people. In today’s era, we are constantly looking at new opportunities to make more money. Sometimes, it is not only about money. The job satisfaction of being an independent policy seller is very desirable for many people. There are more than 1.2 million independent insurance sellers, agents, and brokers in the United States alone, so most potential customers have to use an insurance agency aggregator, just to be able to compare and filter through all the different options available. It is a billion-dollar industry that gives millions of people a livelihood. Naturally, those at the top of the table earn a substantial amount, often well above $1 million.

Let’s weigh the possibilities and prospects of selling insurance in 2022 and who should go for it.

How selling insurance is so profitable

Selling insurance can make you rich, but the type of insurance you sell also plays a huge role. Some insurances are inherently more profitable than others. For example, selling life insurance in the United States is generally more profitable than selling health insurance. There are many types of insurance beyond health and life insurance. Disability income insurance, for example, can also be very profitable. However, it is not as well-known as some of the more common insurance policies.

If you are looking to make it big selling insurance, target those that generally reap a higher reward. However, it should also align with your expertise and goals. If you do not feel comfortable selling auto insurance, you can stick to the other profitable sections. Within the health insurance sector, agents with high efficiency will earn a lot more than inefficient agents. Some agents have a natural ability to sell a certain type of insurance. However, not everyone gets that calling, and it is not necessarily a bad thing. In that case, you should go for whatever comes in the handiest and have the highest prospects.

The booming market of selling insurance

Selling insurance has never been more profitable. The present market is ripe for selling more and more insurance policies. With the easy availability of information, more people are now aware of insurance and its policies. Similarly, companies are more than eager to welcome new agents who can help them sell premiums. Good agents are the backbone of any insurance company. If you have what it takes, you can break into the market and earn a lot of money in the process.

Commission-based payment – the pros and cons

Commission-based payments can be both a blessing and a curse. The curse part is very easy to understand. Unlike having a job, you do not have a fixed amount of money coming in every month. Unlike a well-settled business, you cannot run it on autopilot and keep earning money. Commission-based payment, in a nutshell, gives autonomy and the associated risks.

While the instability part scares off many people, we often take the wrong approach when looking at commission-based payments. Instead of looking at it from a fearful perspective, we need to look at the possibilities. Commission-based payment means endless potential. There is no cap to how much you can earn if you are willing to work hard. On top of that, your personal brand builds over time. Getting new clients gets progressively easier, and a good reputation will easily earn you more and more customers.

If you can tap the market and be at the right place at the right time, the sky is the limit. You can easily earn over a million dollars every year. Insurance sellers, at the best of their game, earn a huge amount of money every year through this commission-based model. Instead of looking at it as a limitation, you should start seeing it as a window of opportunity.

Automated income

Commission renewals are a goldmine for successful insurance agents. For life insurance policies, you get paid as long as the policy is active. That takes care of the instability part triggered by the commission-based model. Most people do not get the benefit of renewal income because they do not stick around in the market for long enough. After a time horizon of 7-10 years, the amount you can simply earn while sleeping becomes substantial. It is one of the major reasons that make selling insurance to make money so lucrative.

The other side of the coin

Like everything else, selling insurance to make money also has its disadvantages. It is not for everybody, and not many last in the market for a long time. Commission-based payments do not work for everyone, and many cannot take that risk. Customer acquisition and the sales process are also very strenuous and cumbersome.


Selling insurance can be a great profession for many people. The market has the potential to make you very rich. However, not everyone has the sales ability needed in the profession, and others lack the perseverance. If you can make it big, there are a lot of prospects in the profession.