Niche of Industry with highest renewal/residual

[Rich-paradox]

I’m definitely going to be entering into the insurance industry. I’ve got a question for everybody. What industry niche am I going to get the most renewal money ilife, health or property and casualty?

 

[DHK]

The one you:
- Love
- Enjoy
- Study
- Become an Expert
- Work

 

[Travis Price]

While money is important, Dave got it on the head.

Frankly, you can make great money in any niche. However, you have to like working with the demographic, product, and sales process to be successful.

For example, I HATE Final Expense. I understand that it's a great product for certain people, but there's a lot of salesmanship involved in it.

That's not my jam. My goal is only to work with people that I don't have to convince they need it.

I also like more service work with renewals vs getting a check all at once and having to sell, sell, sell or starve.

If your quest starts out about money in this industry, you're setting yourself up for failure.

 

[DHK]

Assuming high end competence and passion on either side (probably not possible), here's my perspective:

Life & Annuities: It's more about financial planning than product sales. What problems are you solving through your products? Remember that these products are not a requirement by law, lender, or for doing business.

P&C: to me, it's a commodity. Either price driven or loyalty driven. (I'd look for people who want a more valuable relationship than to comparison shop you with GEICO and whatever else.)


Life & Annuities: largely known for its upfront commission structure and smaller renewals

P&C: largely renewal based income for as long as the policy stays on the books.

You'll notice that I left out 'health' based products. They can fall in either direction: health insurance pays like P&C. Disability, Long term care, Critical Illness... they can pay like Life Insurance and are solving a problem.


The REAL question is who do you want to be a hero to? What problems do they have? How can you help them with your products?

Amazon product ASIN B07WX2GPNN

 

[NormMitchell]

Great comments DHK!

 

[rousemark]

When it comes to renewal income, I would say Ancillary Health, especially cancer and C I. With an average of 15% lifetime renewal, good longterm persistence, average issue age allows for long term payment, it is hard to beat. Add to that an average of 65% first year commission and very little service work required, it is easy to see it can be a lucrative niche.

 

[Rich-paradox]

The one you:
- Love
- Enjoy
- Study
- Become an Expert
- Work

Thanks

 

[Rich-paradox]

While money is important, Dave got it on the head.

Frankly, you can make great money in any niche. However, you have to like working with the demographic, product, and sales process to be successful.

For example, I HATE Final Expense. I understand that it's a great product for certain people, but there's a lot of salesmanship involved in it.

That's not my jam. My goal is only to work with people that I don't have to convince they need it.

I also like more service work with renewals vs getting a check all at once and having to sell, sell, sell or starve.

If your quest starts out about money in this industry, you're setting yourself up for failure.

Not Sure which demographic type of insurance I’d like to sell yet, no experience. I do like the service and the residuals also though. Thanks for your response.

 

[Rich-paradox]

While money is important, Dave got it on the head.

Frankly, you can make great money in any niche. However, you have to like working with the demographic, product, and sales process to be successful.

For example, I HATE Final Expense. I understand that it's a great product for certain people, but there's a lot of salesmanship involved in it.

That's not my jam. My goal is only to work with people that I don't have to convince they need it.

I also like more service work with renewals vs getting a check all at once and having to sell, sell, sell or starve.

If your quest starts out about money in this industry, you're setting yourself up for failure.

Oh and hey, I hear you about just doing it for the money. That’s not me, but instead, insurance is some thing that fits my character and ideology, and I can make money doing it, so it’s for me!

 

[Rich-paradox]

Assuming high end competence and passion on either side (probably not possible), here's my perspective:

Life & Annuities: It's more about financial planning than product sales. What problems are you solving through your products? Remember that these products are not a requirement by law, lender, or for doing business.

P&C: to me, it's a commodity. Either price driven or loyalty driven. (I'd look for people who want a more valuable relationship than to comparison shop you with GEICO and whatever else.)


Life & Annuities: largely known for its upfront commission structure and smaller renewals

P&C: largely renewal based income for as long as the policy stays on the books.

You'll notice that I left out 'health' based products. They can fall in either direction: health insurance pays like P&C. Disability, Long term care, Critical Illness... they can pay like Life Insurance and are solving a problem.


The REAL question is who do you want to be a hero to? What problems do they have? How can you help them with your products?

Amazon product ASIN B07WX2GPNN

This was really helpful. Thank you for that. This will give me some more to think about.