KimPMG
Expert
Med Supp sales can be an incredibly lucrative and stable business. An agent who remains in contact with his clients and watches over his relationships can count on the fact that these policies tend to stay in place with very little effort on the part of the agent. As long as you maintain a relationship with the clients, they will contact you if someone offers them a "better deal" and you will have the chance to help them switch if necessary. In the individual market there is a lot more movement as people switch around, lapse policies etc. In the past, I have had personal clients who remained with the policy I sold them (or at least with ones that I helped them change to as premiums increased) for 15 years or more. The main thing to keep in mind is that this is a very different demo. Even the sub groups within it can be incredibly diverse, so an agent needs to really listen to what the people say and to watch out for their interests just as he would for a member of his/her own family. Ethical agents make a very good living this way (just ask Frank).
- 7,066
I could not have said it better myself.
You pointed out two very important points that, in my experience, agents are very lax about doing. (See bold print above.)
Many agents seen to fail to see the value in staying in regular contact with their Med Supp clients. Apparently they think it is easier to get a new client than to spend a little time staying in contact with and building a rapport with their current clients.
I see this as the number one reason a lot of Med Supp agents never achieve the degree of success they are looking for. They sign up for a twelve month advance and they perceive this as all the money they are going to make, selling to "make money" as opposed to building a long term, successful business. If they don't stay in contact with their clients then twelve months of commission may all that they make.
Like you, I still have seniors as clients that I wrote Med Supps for my first year as an agent, 1993.
I take it one step further. I am proactive with my clients and I am the one who makes them aware of a "better deal". Each year at renewal I make contact with the client to make them aware of the upcoming increase and also let them know about alternatives. Some change, some don't. But after a couple of years of this, they know I am looking out for them and wouldn't dream of doing business with anyone else. YMMV.
- 7,066
I send out an "anniversary" letter, the anniversary of their policy, to all of my clients telling them the policy they currently have is still the best one for them and if that changes I will contact them so we can discuss other options they may want to consider.
When a company has an increase I call them to let them know. I want them to hear it from me before they hear it from the insurance company. This way if the increase is sizable I can move them to a different company at that time.
- 2,452
I have about 3000 clients. About half that many are med sup. Writing since 97. There is no way I could call them all on their anniversary, even if just the med supps. Either u have fewer clients, or do not prospect or handle many claim service calls? Am I missing something?
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I do call all my annuity clients on their anniversary. That's all though.
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- 190
Thank you for posting this.
I agree X 1000.
I don't care how many happy birthday cards and xmas cards you send, these people will look for other options after 2 years of 15-20% rate increases. I want to know who has the time for this?
This business isn't what it once was.
- 7,066
Yes you are. I said, "I send out an "anniversary" letter..."
I believe if you will read my post more carefully you will see that I didn't say I call them on their anniversary, what I did say is that I send them a letter.
It is a very quick simple process since I use a program that enables me to put in the body of the letter in mail merge, click a button and it prints the letter with the date, salutation, the body of the letter, the complimentary close, my name and title. It also prints labels for each letter I print.
I'm not sure what kind of "Med Supps" you sell but there are no claims issues with the Med Supps that I sell. If I didn't stay in contact with my clients I would probably never hear from them.
I do offer training to sell Med Supps. (Joke) Hahahahahaha
- 15,319
Is such a program available for other agents to buy? Probably would cost a couple of thousands of dollars to do all that.
Rick
- 7,790
Where can I buy such a program, Frank?
