Difficulty of Selling FE Vs Med Supps

[ExProgrammer]

Easier to sell? Medicare by a LONG SHOT! I started with FE, then moved to medicare primarily now, and its night & day. FE takes real sales skills, and a lot of ppl really don't wanna pay for insurance, but they want it....you also got to collect a voided chk.

I dont ever have to collect $$ with medicare, and most ppl NEED it at 65, not just want it. Medicare is more of a trust thing....if they trust you know what youre talking about, and you offer good plans, its pretty much a done deal. Plus Id guess 40%+ of your sales have a "built referral" when spouse T65.

Going by memory, Id close around 50% of my FE sales, give or take 10%....I close 85-90% of my Medicare appts. But youre right, FE will make you more $$ in the beg, medicare will take 2-3yrs to really start to see the effect of it.

I attached a comparison sheet I made a few yrs ago....

Thanks. What about selling F2F vs over the phone? It seems that F2F is much preferred by most with FE, but that over the phone is preferred for med supps. MA might be different.

 

[GoPokes]

Thanks. What about selling F2F vs over the phone? It seems that F2F is much preferred by most with FE, but that over the phone is preferred for med supps. MA might be different.

I think everyone who is new should start out f2f, then if you want to do phone you can transition over to that. Starting out all over the phone would be challenging in an already challenging industry.

 

[TDFnCali]

Thanks. What about selling F2F vs over the phone? It seems that F2F is much preferred by most with FE, but that over the phone is preferred for med supps. MA might be different.

You can do either over the phone, although that's a lil dicey with medicare, but the failure rate with FE phone sales is a lot higher....I wouldn't start off that way. Plus F2F sales skills will actually make it easier for you to do over the phone.

 

[bboman23]

I think everyone who is new should start out f2f, then if you want to do phone you can transition over to that. Starting out all over the phone would be challenging in an already challenging industry.

The main key word is START! Most of the threads on here now are started by people that's been trying to get going for years now and haven't pulled the trigger.

Paralysis by analysis!

 

[Glen Shelton]

The general consensus seems to be that you can start making money more quickly with FE but could well make more within a few years with med supps because of the renewal commissions for six years. Obviously that wouldn't work out very well if med supps were a lot harder to sell.

So just from the standpoint of actually making the sale what is the level of difficulty like with FE vs med supps?

Personally, I think Medicare Supplements are a little easier sale (especially when the pitch is "I'm trying to save you money!").

I would agree with your comment that there is more money upfront in FE sales.

I actually wrote an article about this very topic on my blog a few months ago -

THE DIFFERENCES BETWEEN FINAL EXPENSE AND MEDICARE SUPPLEMENTS

 

[Alston]

You might have better cash flow the first year if you sell FE. But the persistency for in the Medicare market is close to 100%. And the renewals are much better. I'm guessing that the referrals are better also.

My current goal is to sell more policies to fewer clients. I'll have better persistency, spend less time on service work and will get more referrals this way.

So I sell both. But if I had to choose, I'd definitely sell Medicare Supplements and MA plans over FE.

 

[mickeyma]

Medicare sales are a lot harder today because of the competition. People start receiving flyers 9 months before turning 65. Big companies like AARP, Anthem, etc. send out tons of flyers. And, there are free lunches with seminars. Also, major companies send mail to their clients turning 65.

The direct mail response, according to the regional sales mgr at Anthem Blue Cross in Los Angeles, is terrible. He told me an agent can not make a living from direct mail in L.A. because of the poor response.

Mail out 1,000 at 1% return = 10 leads. At $450 per thousand, you're lucky to make $1,000 in first year gross commission.

Also, my prospects are telling me they are not only getting a stack of flyers but a ton of phone calls.

So, don't be deceived into believing that Medicare sales will be lucrative. It's harder than final expense because the competition now is so much greater. How many calls does someone get for final expense? Very few.

 

[Chazm]

Medicare sales are a lot harder today because of the competition. People start receiving flyers 9 months before turning 65. Big companies like AARP, Anthem, etc. send out tons of flyers. And, there are free lunches with seminars. Also, major companies send mail to their clients turning 65.

The direct mail response, according to the regional sales mgr at Anthem Blue Cross in Los Angeles, is terrible. He told me an agent can not make a living from direct mail in L.A. because of the poor response.

Mail out 1,000 at 1% return = 10 leads. At $450 per thousand, you're lucky to make $1,000 in first year gross commission.

Also, my prospects are telling me they are not only getting a stack of flyers but a ton of phone calls.

So, don't be deceived into believing that Medicare sales will be lucrative. It's harder than final expense because the competition now is so much greater. How many calls does someone get for final expense? Very few.

1%? That's nonsense.

I average 2-4% and do just fine.
Got in 25 new lead cards in yesterday. Got a hold of 10 and set 7 of them. I even qualified them to make sure no disability, no Tri care and no group plan. Ran 5 of the 7 today and they were all good appts. 2 more tomorrow and then I'll get on my other leads that I've received in the last 3 weeks, all 175 of them.

 

[TDFnCali]

Medicare sales are a lot harder today because of the competition. People start receiving flyers 9 months before turning 65. Big companies like AARP, Anthem, etc. send out tons of flyers. And, there are free lunches with seminars. Also, major companies send mail to their clients turning 65.

The direct mail response, according to the regional sales mgr at Anthem Blue Cross in Los Angeles, is terrible. He told me an agent can not make a living from direct mail in L.A. because of the poor response.

Mail out 1,000 at 1% return = 10 leads. At $450 per thousand, you're lucky to make $1,000 in first year gross commission.

Also, my prospects are telling me they are not only getting a stack of flyers but a ton of phone calls.

So, don't be deceived into believing that Medicare sales will be lucrative. It's harder than final expense because the competition now is so much greater. How many calls does someone get for final expense? Very few.

Yep, hes ^^^ 100% right kids....Dont do medicare, esp in the IE part of Socal, its awful, horrific even! I'd stick to FE, mort protection, annuities or whatever, but medicare aint worth it!

 

[Newby]

Medicare sales are a lot harder today because of the competition. People start receiving flyers 9 months before turning 65. Big companies like AARP, Anthem, etc. send out tons of flyers. And, there are free lunches with seminars. Also, major companies send mail to their clients turning 65.

The direct mail response, according to the regional sales mgr at Anthem Blue Cross in Los Angeles, is terrible. He told me an agent can not make a living from direct mail in L.A. because of the poor response.

Mail out 1,000 at 1% return = 10 leads. At $450 per thousand, you're lucky to make $1,000 in first year gross commission.

Also, my prospects are telling me they are not only getting a stack of flyers but a ton of phone calls.

So, don't be deceived into believing that Medicare sales will be lucrative. It's harder than final expense because the competition now is so much greater. How many calls does someone get for final expense? Very few.

Sounds like you were beat before you left your house.