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From Add-on to Must-have: Why Insurance Agents Need to Bundle Products
Key takeaways:
- Bundling insurance products has evolved from a nice-to-have add-on to a must-have strategy for staying competitive.
- Consumers now expect bundles that simplify their coverage, save money and fill protection gaps.
- Agents who tailor bundles to client priorities—convenience, cost or peace of mind—see stronger retention.
Photo by Robin Stickel on Unsplash
Burger? Yes, please.
Fries with that? Why not!
How about a drink? It might be nice to have something to wash down the burger and fries, but I really just came for the burger.
What if it was all 15% off if you buy them as a combo?
Sold.
Just as with fast food, cross-selling and bundling insurance products has always been a smart move for sales agents. Just like that burger-fries-soda combo, it gives you more opportunities to sell, helps you become a one-stop shop and supports retention, repeat customers and referrals.
But in today’s market, bundling isn’t just good strategy. It’s a necessity.
Consumers now demand more value, more convenience and more personalization than ever before. Insurers have responded by using combinations of standalone plans or bundles as a core strategy for retention and cross-selling. If you aren’t doing the same, you risk getting left behind like a burger stand with no fries.
Consumer demand for bundled products climbs
Insurance bundling is common practice for homeowners’, auto and life insurances. Here’s why you might want to take a page from their book, no matter the type of insurance you sell.
A July 2024 Comscore study found that nearly half of homeowners’ insurance quote initiations and more than half of quote submissions in Q4 2023 were for bundled policies. Consumers want the simplicity and perceived savings of having their policies in one place.
Meanwhile, the 2025 J.D. Power Insurance Shopping Study showed an all-time high in shopping activity, with 33% of shoppers looking to combine auto and homeowners policies. And about one third of all shoppers explicitly sought out bundle deals.
The trend is clear: consumers expect bundle options, and they actively seek them out. You might be wise to not just offer bundle deals, but to lead with them.
Why consumers prefer bundled insurance plans
Bundling isn’t just a gimmick. It directly addresses customer pain points in ways that are meaningful and lasting.
Remember when bundling was just a nice upsell? Those days are gone.
Photo by Brett Jordan on Unsplash
Filling coverage gaps
Individual supplemental health insurance can include a wide range of coverage:
- Dental
- Vision
- Hearing
- Hospital indemnity
- Critical illness
- Accident
- Cancer
- Short-term disability
- Long-term care
- Gap (medical gap or supplemental hospital insurance)
- Telehealth or virtual care add-ons
The individual supplemental health insurance market continues steady growth, closing in on $10 billion in premiums for 2024. Much of that growth comes from Medicare expansion and consumer demand for products like dental, hospital indemnity and critical-illness coverage.
Meanwhile, the broader U.S. supplemental health insurance market has grown from $38.58 billion in 2024 and is expected to keep expanding as consumers look for solutions that close gaps in their protection.
These supplemental products are often sold alongside health plans to address needs that standard coverage doesn’t fill, and, as healthcare costs rise, consumers don’t want to get hit with bills without coverage. If that doesn’t ring a bell with your clients, ask them how much their last surprise dental bill was and watch them cringe.
Convenience and simplicity
Bundling can help give consumers the convenient shopping experience they’ve come to expect from companies like Amazon or Uber. For example, Medicare Supplement (Medigap) products are increasingly bundled with dental and vision, especially in rural areas where access to multiple insurers may be limited.
Bundles can allow for streamlined policy management, simplified claims, improved customer service and even loyalty rewards programs, and they deliver the “one-stop-shop” experience consumers want. Like finding The One that finally got them to close down their dating app account for good, your clients want you to be the whole package.
Savings and value
Consumers can be budget-conscious, especially in an era of rising premiums. They’re conditioned to expect discounts when they bring more business to one provider. Bundling discounts remains one of the surest ways to appeal to value-seeking or price-sensitive clients.
Why insurance agents need to offer bundle options
For years, customers who purchased bundled coverage were considered “sticky.” They were more loyal and less likely to shop around. But in today’s environment of premium hikes and market volatility, even these loyal customers are comparing deals and switching at higher rates.
Your solitary plan, sold all by its lonesome self? It’s probably going to remain like that sad pet at the pet store that nobody adopts. Just like people, products are better when they stand together. It will be hard enough for you to compete with a competitive bundle much less no bundle, so you’d best get bundling.
How to start putting your products together
The good news is that there are clear strategies you can use to meet demand and strengthen client loyalty.
Photo by Vardan Papikyan on Unsplash
1. Discover coverage gaps and needs
Start with listening. Ask your customers about their coverage gaps and life changes. Use digital tools, customer surveys or face-to-face conversations to discover unmet needs. What combinations of plans would fill those gaps or offer flexible options?
2. Offer a diverse portfolio of products—or partner up to provide them
Present products that complement each other, like health insurance plus dental, hospital indemnity or critical illness. You can bundle them for added convenience and consider offering a discount for the bundle.
When selecting a carrier to work with, pay attention: Do they offer a variety of plans that work well together for the needs of your clients? Do they offer any extra benefits or discounts for clients who enroll in a bundle?
If you don’t offer a full array of products yourself, partner up to offer complementary products. Customers value convenience, but not necessarily who carries the policy as long as you have their trust.
3. Get your messaging right
When recommending combinations of plans, understand what matters most to your customers. And don’t make them dizzy with insurance-speak; instead, put things in terms they understand so they can focus on weighing their options.
As you narrow down the right plan combination to bundle together, let your clients’ priorities guide what you offer and how you frame the products.
- Is budget their top concern?
- Are they worried about risk exposure and unexpected expenses?
- Do they crave simplicity—everything in one place with one point of contact?
- Or do they value peace of mind above all else?
Your messaging should address these core motivations, not just the generic promise of “savings.”
4. Make it easy
Convenience can be as valuable as cost savings. In fact, many people would take getting everything they need in one place over shaving a little off the price tag any day.
- Clearly explain how bundled policies work and why they’re beneficial.
- Provide easy enrollment options, with the ability to add policies later as needs evolve.
- Ensure customers can manage all policies, file claims, and get service through a streamlined process.
5. Offer discounts and loyalty rewards
Multi-policy discounts are a strong motivator, but don’t stop there. Loyalty rewards—such as premium credits, wellness perks or even customer-appreciation programs—can deepen long-term engagement. Help your clients understand how to make the most of these to help them get invested long-term in their plans and in you.
When bundling isn’t the answer, try unbundling or more targeted bundling
Customers don’t want a bundle full of products they’ll never use. Nor does every bundle satisfies every customer. In addition, rising rates for individual policies sometimes erode the cost advantage of bundling, prompting shoppers to reevaluate. In those cases, consider:
Unbundling: What’s more fun than wrapping a gift? Unwrapping it! Allow customers to mix and match standalone products. Flexibility may be the deciding factor, plus people love building their own, custom sandwich or pizza pie.
Re-bundling: Create smaller, more targeted bundles that align better with specific customer needs, like pairing hospital indemnity with critical-illness coverage or dental with vision.
The point isn’t to force every customer into a one-size-fits-all bundle, but to give them options that feel tailored.
The bottom line
Bundling has moved from a nice-to-have to a must-have. Consumers actively seek bundles, competitors promote them and the market rewards insurers who deliver it well.
Insurance agents who adapt now—by identifying gaps, offering complementary products, crafting the right messaging, making it easy for customers and rewarding loyalty—will be better positioned to retain and grow their customer base in a competitive market.
Those who don’t may find themselves left behind as customers choose agents who make insurance simpler, more affordable and more complete.
Ready to explore how to bring your products and marketing together into the perfect package? We’ve learned a thing or two that could help you get started. Get in touch.