Med Supps: Low Rates vs Low Rate Increases

[Frank Stastny]

Rate increases, ya got ta love em.

If companies stop having rate increases I would have to dramatically change my marketing strategy. Rate increases have made me successful. They also make Med Supps a whole lot easier to sell.

If company "A" has a rate increase, every prospect I have talked to in the past several years, who told me they had company "A", becomes becomes a steaming hot lead. If I don't sell them, shame on me.

If companies were smart they would base the agent's commissions on the current premium, not based on the premium when the policy was sold and not dramatically cut the agent's commission after the first several years. They would lose less business and agents would provide much better service. (Insurance companies really don't like agents very much.)

I believe that California is the only state that pays commission on increases. I'm sure Rick can provide more details on that.

 

[Russ]

If companies were smart they would base the agent's commissions on the current premium, not based on the premium when the policy was sold....

That is so true.

I also hate how most companies cut the agent completely off after 10 years of commission(MoO). AARP cuts off after 6.

 

[Frank Stastny]

That is so true.

I also hate how most companies cut the agent completely off after 10 years of commission(MoO). AARP cuts off after 6.

One would think that if an agent busts his ass providing excellent service to his clients and they stay with that company for more than six years, in most states, the company would reward the agent instead of "punishing" him.

We are the "redheaded step-children" of the insurance industry.

I have to go and clean out the barn. At least my goats appreciate me.

 

[GreenSky]

I believe that California is the only state that pays commission on increases. I'm sure Rick can provide more details on that.

The companies that are (or were) CA based pay commission on increases but I rarely use them because there are lower cost alternatives for my clients.

In addition, the birthday rule gives my clients a GI ever year into the same or lesser plan so I am not concerned about how long the commission will last. No company thus far has been the lowest priced for more than a year or so.

Rick