Selling Health Insurance From Home | Generate Income For You

The health insurance sector in India is still in its infancy and the market is ready for aggressive growth. The Insurance Regulatory and Development Authority of India (IRDAI) has also cleared the way for health insurance agents to sell insurance online. Selling health insurance from home, therefore, is an excellent career option and here we will discuss, in steps, how it can generate consistent income for you.

What is the current size of the insurance sector and the scope of work in the market?

1. During the financial year 2018-19, Insurance Companies collected Rs 44873 crore as health insurance premium registering a growth of 21.2 percent over the previous year. Health insurance premium continues to grow over 20 percent year on year during the past four financial years.

2. The overall penetration of health insurance in India stands at less than 1 percent which means that most of the population is underserved and the potential for growth is exponential.

3. The government is aggressively promoting the benefits of getting insurance, it is increasing public awareness, and creating a market that demands insurance products. This means that selling insurance is both viable now and a lucrative career prospect for the future.

How do health insurance agents make money?

Health insurance agents can make money in a number of different ways:

1. Insurance agents are expected to make most of their income through commissions.

2. Health insurance agents earn commission on the premium amount of the policy sold. They earn commission on each premium and also when the policyholder renews the policy.

3. Companies offer rewards (cash or kind) to health insurance agents based on their performance, over and above the commissions. The rewards, however, are shown under the category of commission itself making the payments more transparent for the clients.

What are the important factors that determine how much money an insurance agent can make?

There are a number of factors that determine how much money you can make selling health insurance from home:

1. How you service your client base – The more policies you sell, the more you earn. This is your active income that can vary per month based on products sold and commissions earned. You can aslo find referrals from your existing clients and earn rewards in return. More importantly, you need to service your clients to the best of your capacity by understanding their concerns and addressing them. Each client is unique and their concerns vary, and the more you apply yourself as an insurance agent, the more money you’ll make. 

2. The kind of insurance product sold – While the commission agents make from selling insurance is fixed at 15 percent, different health insurance products sell at different costs. It is always a good idea to sell health insurances meant for senior citizens, families, and those meant for illnesses such as cancer and diabetes. These insurances are priced highly, and hence the commission is also high.

3. Association and licence – Your income depends on how many insurance companies you are associated with. A Point of Sales Person (POSP) can sell products of any number of companies, while an insurance agent can associate with only one company. However, a POSP can only sell health plans to individuals, with the maximum sum insured being limited to Rs. 5 lakhs. 

How much money can I make selling health insurance from home?

The amount of money you earn depends on the factors mentioned above and the amount of work you put into it. Plus, the insurance sector is highly client-oriented so, if you provide excellent and apt service to clients, your relationship will grow and you can generate multiple leads through client references. To understand the scope of revenue, let us take a case-study.

Imagine you sell (in order of difficulty) : 

• Five Individual insurance policies at Rs 10,000 each. The commission you make through these sales is Rs 7,500.

• Four Family floater plans at Rs 18,000 each. The commission you make here is Rs 10,800.

• Two Diabetes insurance policies at Rs 40,000 each. The commission you make is Rs 12,000.

• Additionally, you sell one cardiac care or cancer insurance policy at Rs 30,000, thereby making another Rs 4,500.

Therefore, by selling 12 health insurance policies from home in a month, you can make more than Rs. 35,000 easily. In addition to this, next year onwards, you receive 7.5 percent commission on each of the premiums without working for it. And if you perform better, the company can pay you up to 10 percent of the total premiums at the end of the year as reward.

The income you earn, therefore, is completely up to you. But if you work smart, you can generate consistent income on a monthly basis easily by working from home. Get started now.