This is a commision job no two people are going to be the same. Don't measure yourself against some number calculated in a forum. There are far to many variables. Nearly everyone says they work hard to some people thats 45 hours a week to other people its 80 hours a week, some areas of the country are great for med supps others are less attractive. Some people just have a natural comfort over the phone and or in person others have to work very hard for similar success. One of the largest investment firms had a hiring policy that included asking the question of sales agents "how much do you expect to make in your first year" the answer they were looking for was I don't put limitations on my success. They found when agents had a specific number as a goal once they reached their goal they stopped prospecting and their commitment dropped off until the following January. Your goal for the first year should be investing 100% effort towards building your business in other words paying your dues. That might mean you make $30,000, 75,000 or $100,000 plus it will be different for every agent. Many successful agents in this thread have already paid their dues. Those of us starting out should be more concerned with our investment in building our business rather than cashing out. The income will follow based on your investment in other words effort. It can happen quickly but it likely with be like a stairway one step at a time. Better to do it right than racing towards a specific income goal.
How Much Can One Make Per Year Selling Med Supps?
- Thread starter Jinsin77
- Start date
Apollo, that was VERY well said. Thank you for bringing this thread back into perspective.
This is my first visit to the forum. I came here by way of google looking for some real info on what people make selling insurance. I LIKE YODA! Yoda, you rock. What's wrong with being skeptical? I'm thinking about going into insurance and appreciate the dose of reality.
The number that jumps out at me from this thread is $24.
Assuming a policy pays $24 a month 10 x $24 = $240
Ten policies a month for six months is 60 x $24 = $1440.
Month seven: $1680. Month eight: $1920. Month nine: $2160.
Month ten: $2400. Month eleven: $2640. Month twelve: $2880.
Factor in cross sales and there must be products that produce an occasional nugget bigger than $24, right? Take my math up to 24 months and we're at $5760. At the end of thirty six months of selling ten policies a month I should have an income of $8640.
I would like to achieve this by becoming knowledgeable about insurance products and consulting with people who will benefit from my knowledge.
Is this a realistic plan? I see the first twelve months as a bit of a challenge. Any suggestions on meeting the challenge of getting off to a fast start?
The number that jumps out at me from this thread is $24.
Assuming a policy pays $24 a month 10 x $24 = $240
Ten policies a month for six months is 60 x $24 = $1440.
Month seven: $1680. Month eight: $1920. Month nine: $2160.
Month ten: $2400. Month eleven: $2640. Month twelve: $2880.
Factor in cross sales and there must be products that produce an occasional nugget bigger than $24, right? Take my math up to 24 months and we're at $5760. At the end of thirty six months of selling ten policies a month I should have an income of $8640.
I would like to achieve this by becoming knowledgeable about insurance products and consulting with people who will benefit from my knowledge.
Is this a realistic plan? I see the first twelve months as a bit of a challenge. Any suggestions on meeting the challenge of getting off to a fast start?
Last edited:
Well, you left out lapses People change plans, go on Medicaid, die, etc. You are not going to have a 100% renewal rate. Lapse ratios vary but a new agent could probably expect to lose at least 15% of their total MS book each year. Someone who is active in the MS market (I no longer am) might give you a better estimate.
- 7,066
Your assumptions are very logical and for an agent who is treating this as a career are very doable.
Final Expense is a natural cross sell to a new Med Supp client. I mostly replace existing Med Supp policies and always save my new client money in doing so. I suggest that they use a portion of the money I saved them and reinvest it in a small FE policy.
First year commissions for FE can run as high as 110% to 115%. A $30 per month FE policy could get the agent another $414 in commission over and above the Med Supp commission.
Selling just a few of those each month will dramatically add to ones commission income.
To get off to a "fast start" know what you are selling, the concerns seniors have and don't try to "sell" them a policy. Use factual information presented logically so they can understand it and guide them to the company and plan that is the best investment of their premium dollar.
Educate them, don't "sell" them.
Last edited:
- 397
Pretty close. I cross sell Dental and PDP. I am running at about 60% of my T65s will also take a dental. These aren't huge commissions, but they take no time to sell and will boost your avg commission by 10%-15%. For the PDPs, I am only contracted/certified with a couple carries. Again, I will earn a PDP commission on about 60% of the T65s.
There is a small attrition percentage with Med Supp. You can keep it VERY small if you stay in touch with your customers and service them well. You numbers work if you figure the cross-sells will cover the attrition.
The cert process for PDPs are the same as MA, which is to say a real PIA. Also, compliance can be an issue.
Medicare (Med Supp, MA, PDP) is a natural cross sell for agents focused on FE. I haven't found it too successful going the other way, but it might be worth a try. Even if you only got one extra FE a month, that would equate to an extra 6K-8K in commission a year.
As for getting through the first year, you are correct. It will be a challenge. You should plan to have 9-12 months living expenses set aside in savings. You will need it. If you don't have that, then will will have to supplement your income with something else for the first year or so. I don't like doing the advances, but you might need to consider that.
Best wishes.
Last edited:
That says it all my friend. I think someone said you can expect to lose 15% per year. That is not my experience at all. Not even close.
MedigapOnline
New Member
- 4
Yoda,
I'm sure these numbers suggested by Frank would work for anyone that put in the effort. My numbers dwarf even his examples. You may be the exception. With an attitude like yours who would want to buy even a single policy from you?
I'm sure these numbers suggested by Frank would work for anyone that put in the effort. My numbers dwarf even his examples. You may be the exception. With an attitude like yours who would want to buy even a single policy from you?
Well, I said I wasn't sure what it would be now.. but I was assuming he is going to loose some to replacement by other agents, some will switch to MAs because of the premium difference, will loose some due to premium increases, some will become eligible for Medicaid and finally you have about 3% - 6% of that population die off each year. You will be able to replace those, of course, but his calculation assumes 100% retention and that isn't going to happen with health insurance unless the market has changed drastically the last few years.
Similar threads
