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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.
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.
