Why Not Offer Med Supps?

[Frank Stastny]

Thanks for your answer. About how long is a Med Supp client with the same carrier before you move them to a new Co. where the rates would be lower?

It depends on a number of things. Whether or not the company is an attained age company or if they are issue age. How large any given increase is. If you have sold yourself to the client or if the client just views you as "the guy who sold them the policy".

I have sold policies to seniors and only saved them literally a few dollars because they have never heard from their agent or been trying for months to get in touch with him and he won't return phone calls.

I currently have clients that are beyond the six years who would never even consider letting another agent sell them anything. Actually, they won't even let me switch them to another company. I did "such a good job" of selling me and the company to them that even I can't get them to switch.

I have never kept track of that information but if I had to make a guess probably around 4 to 5 years. I don't believe in chasing my clients every time the premium goes up a couple of bucks. Apparently they are comfortable with that, I have excellent client retention.

 

[sman]

Glad it works for you hogfish. Why the need to bash the Med Supp as a tool to get in the door? Also, say a person you sell an FE to lives 20 years, how much in premium are they going to pay in comparison to their death benefit?

Not everyone 65 and over is a candidate for FE. Nor are they all candidates for Med Supps/MA plans. Obviously you are doing something that works for you and many of us are doing what works for us.

I can tell you this, I don;t have to do a 1,000 piece mailer every week nor do I have to pander to pastors about getting the elderly in the congregation to take out coverage and leave some of it to the church. You see, my renewals AND referrals pay the bills and keep me busy.

Interesting, but that is like online dating, the prospects look good but there are a 1000 guys pitching the same thing to 90% of the prospects. Which makes it somewhat moot.

- - - - - -
Here is what I do every week: ONLY FE RELATED & WHY.
1. I mail a 1,000 piece drop every week religiously.
2. I cold call on specific churches and talk to the reverends for about

1-2 hours a day, and tell them how their followers can benefit from

my products.

3. Field - I work my leads, which I sell policies.

Example:
" Now miss Jones the average funeral costs about $7,000 over at __funeral place______ and now that we have that covered do you feel better? "
'Yes'
"Great, now do you think it would be wrong; IN YOUR OPINION to leave a little for your church after the Good Lord calls you home?"

WOW - A - Win-Win Situation and
$2-8 more thousand dollars more in face value.

Joke: But Could Be Real.
Try that with a Med Sup and you will see every Evangelist south of Quebec, pitching Med-Sups in a suit with an AARP attached; that cost more than the Lexus you leave at home so you can drive your reasonable looking American Car that you just know helps you make sales.

 

[Frank Stastny]

WOW! For a minute there you fooled me into believing your a wonderful not-for-profit agent who just helps seniors make the right decisions purchasing Med-Sups, sort of like AARP. And I'm the bad agent who sells evil FE policies (which never have graded death benefits) to the senile elderly population. While fooling them into thinking that their church (who has helped them throughout their life) and the God they believe in needs their money.

Get real buddy some people believe that is a value added service! And understand that their death may do some good by donating to whomever they want it to go to.

Why all the anger?

Based on your statement are we to assume that if you are "healthy" that you don't carry health insurance? Is that what you advise "healthy" people to do, put their money in a FE policy so their church can repave the parking lot when they die?

No one has accused you of doing anything. If you see yourself as "evil" then that sounds like more of a personal problem to me.

Look up, you described what Sman, I and a whole lot of other agents do who work the senior market. We are insurance agents who help people not salesmen.

I sense a lot of "Yoda" undertones in what you are saying. It is very curious that you feel the need to so strongly defend what you do.

 

[HawkeyeJ]

Dumb Q I know but do Med Supp co's do advanced commission, or is it as-earned?

 

[Frank Stastny]

Dumb Q I know but do Med Supp co's do advanced commission, or is it as-earned?

Med Supp companies give the agent a choice. They can either take commissions as earned or most will offer up to a twelve month advance.

 

[Lyn]

The reason he posted was only for recruiting "for the best job ever seriously" but EVERYONe knows that.

And more then the up coming spin I look forward to him diggin deep into his I-Quote application, to find the perfect quote to put everyone in their place.


BRRRRRR..... Its getting very shilly in here rob...
Yoda '09

Frank, this is too funny. We were just talking about this very thing this afternoon!

 

[Guest]

Seriously? You guys spend time talking about me?

I'm honored, wait, no I'm saddened that you don't have anything better to do with your time or conversation.

Sorry, I don't ever think of you guys when I'm away from here.

.

Frank, this is too funny. We were just talking about this very thing this afternoon!

 

[dlj2626]

In the few months that I have been selling Med Sups I have noticed people are always looking to replace their Med Sup or Advantage plan about every five years and sometimes even less than that. Plus you have many people getting on advantage plans nowadays even if they know the plans are not advantagous for them. I can see where this market can be a headache for an agent. Me personally it is not a hard market but I think I might need to have an advantage plan in my arsenal. Because if they are not going to purchase a supplement through you then they will get an advantage plan.

 

[IBFA]

It has always surprised me that professional agents, regardless of what they are selling, don’t carry Med Supp apps with them. I can’t think of a product an agent can sell that isn’t going to put them in contact with at least a few people each year that are either on Medicare or soon to be turning 65.

Medicare Supplements are the simplest, easiest kind of insurance to learn, prospect for and sell. The basics are very straightforward , it is the “when” and “how” that takes some research and time to learn. It’s almost impossible to “screw one up”. So much so, that insurance companies do not require agents to carry E&O insurance to sell Med Supps. It’s pretty hard to make an error or omit something unless the agent lies about the coverage. (I don’t believe E&O would cover that anyway.)

There are no riders, rate ups, exclusions or exceptions as with individual health insurance. No underwriting or claims problems. The agent doesn’t need a “quote engine”, look at the rate sheet and point to the premium.

In essence the agent is the underwriter. If the prospect answers “no” to all the appropriate questions the company basically issues the policy, an APS is not routinely requested. If the prospect answers “yes” to even one of the health questions there is no reason for the agent to submit the app. The company will not issue the policy.

Service work is virtually nonexistent. Medicare has it setup to handle all claims automatically. There is very rarely a claim dispute. The only times I have received a call on a claim is when the doctor coded the claim incorrectly and it was easily resolved by me calling the doctor’s office and requesting that the claim be coded correctly and re-filed.

Medicare Supplement renewals are the best in the industry. In most states companies pay first year commission for the first six years. Agents who are selling insurance just to make money and do not look at it as a career do not perceive that selling Med Supps will generate the kind of income they are seeking. That is because they are only looking at the first year commission. (Most take a 12 month advance and consider that as being the amount of money they made.) If the annual commission is $300 they only think in terms as having made $300. When I sell a policy I think in terms of having made $1,800. I still have seniors as clients who I sold a Med Supp to in 1993, my first year in the business. Any idea how much commission I have made from those clients? A lot!

When I “walk out the door” with a signed application I leave my new client with more disposal income than they had when I “walked in the door” with no reduction in coverage. They have more money to spend as a result of having met with me.

Cross selling opportunities are smooth and sweet. Final Expense becomes extremely easy to write. I simply suggest to my new client that he/she may want to consider reinvesting a portion of the money I just saved them in a small final expense plan. The key to doing that is that I’m not using any “new money”.

I’m only suggesting that they use a portion of the money I just saved them. Many companies even have a section on the Med Supp app for adding a final expense policy. Agents can easily double their Med Supp commission on that appointment by adding a small FE plan.

Seniors control the majority of the wealth in the country. Once the agent gains their trust and confidence, approaching them with the opportunity to purchase an annuity becomes nothing more than a friendly conversation to show them there may be better options for investing their money.

It is more difficult to interest people in Long Term Care insurance who are substantially under 65. Most people don’t look at it seriously until they start approaching “old age” and they have seen friends and relatives who have had to enter a nursing home. The trust you have gained with your Med Supp clients will allow you to show them the benefits of a LTCi policy without you sounding like you are trying to “sell” them something. Just like FE, I have a substantial amount of LTCi on the books but I have never had to “sell” my Med Supp clients the policy.

I guess I should be grateful that all agents don’t carry Med Supp apps.

On second thought, forget everything I just posted.

I think most Agents assume MedSups are confusing. Those that have done at least one know that is not the case at all!