Selling Health Insurance: The Definitive Guide

August 31, 2023

Are you thinking about selling health insurance? According to the Centers for Medicare and Medicaid Services, four out of five consumers are now able to get coverage for under $10 a month, and many of them need brokers to assist them in making a decision.

Selling health insurance is a rewarding opportunity where you get to help individuals and families understand their healthcare options, and make a generous commission while you’re at it.

Continue reading for our step-by-step guide on selling health insurance.

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How much can you make selling health insurance?

Selling health insurance is part of the financial services industry, which has a track record of generating more millionaires than any other industry.

One of the reasons that selling health insurance is so lucrative is your ability to make ongoing, residual income. When you work a job earning $12 per hour, your paycheck is the same regardless of how much effort you put into it.

Ongoing Residual Income

With health insurance sales, you sell a policy and receive a monthly commission (usually $25 per member) for every month that they stay on the plan.

If you can get your “book of business” up to several hundred clients, then you should have no problem making a six-figure income – all while getting to be your own boss! Check out this article that shows you how it’s possible.

Selling health insurance can be a great way to make passive income, even in times of economic uncertainty. Regardless of what happens, people still need to see their doctor, care for their children, etc.

Get Licensed to Sell Health Insurance

In order to sell health insurance, you must become a licensed life and health insurance agent in your state (or any state that you plan on selling in).

The basic insurance licensing requirements include:

  • Be at least 18 years old
  • Complete pre-licensing education
  • Pass the state insurance licensing exam
  • Pass a background check

Insurance Licensing Requirements

If you meet these requirements and you are willing to commit to further training and certifications, you will enroll in an exam preparation course and then pass your state exam.

We have a complete guide for getting your life and health insurance license here.

Partner with a General Agency

A General Agency (GA) is the link between health insurance carriers and independent health insurance sales agents.

It’s important to partner with a reputable health insurance GA that offers a good mix of carriers and products, fully-vested contracts, training, support, and technology.

Marketing Organization

Selling health insurance can be overwhelming when you’re working alone, and that’s why companies like The Brokerage Inc. exist. A good GA empowers you to sell more, earn more, and stay independent.

For more information, check out this guide on how to find the best General Agency.

Complete FFM Certification

In order to sell ACA health insurance products, you must complete the annual Federally Facilitated Marketplace (FFM) certification.

This certification status is tied to your National Producer Number (NPN) and must be completed before you can process applications through Healthcare.gov.

For more information on the FFM certification, click here.

Prepare for Success

Once you are licensed, partnered with a GA, and certified, it’s time to prepare for success.

The first thing to do is leverage your network. Let others know that you can now help them and their family with health insurance, and make it easy to share your information. Secondly, plug into your GA’s training & marketing programs to find out how you can kick-start your book of business.

In the beginning, we recommend that you keep your day job and sell health insurance on the side. This removes unnecessary pressure and enables you to focus on building a sustainable business.

At The Brokerage, you can start selling health insurance by setting up a free account in The Broker Link. There, you can get contracted with health insurance carriers, learn about our exclusive marketing programs, access our on-demand training, and so much more!

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