Difficulty of Selling FE Vs Med Supps

[ExProgrammer]

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?

 

[goillini52]

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?

FE's much simpler and easier to learn, but I'd have to say that Med Supps is an easier sale.

Fewer people are going to do without Med Supps than will do without FE. I believe that 40% of Americans have no life insurance.They have much greater exposure by doing without a Med Supp than a one time exposure for FE of $10K. Being without a Med Supp leaves them with constant exposure and it can be much greater.

Another reason Med Supps are easier, is that they're shopping for a lower rate every 2-3 years. You also have to move your existing clients to different companies(or another agent will). This saves them money, and lots of the time you can cross sell FE, Dental, etc., with existing and new clients with the money you've saved them. When you rewrite your clients, you'll often get referrals while you're there.

When leading with Med Supps, you cut out most of the cat piss.

 

[ExProgrammer]

FE's much simpler and easier to learn, but I'd have to say that Med Supps is an easier sale.

Fewer people are going to do without Med Supps than will do without FE. I believe that 40% of Americans have no life insurance.They have much greater exposure by doing without a Med Supp than a one time exposure for FE of $10K. Being without a Med Supp leaves them with constant exposure and it can be much greater.

Another reason Med Supps are easier, is that they're shopping for a lower rate every 2-3 years. You also have to move your existing clients to different companies(or another agent will). This saves them money, and lots of the time you can cross sell FE, Dental, etc., with existing and new clients with the money you've saved them. When you rewrite your clients, you'll often get referrals while you're there.

When leading with Med Supps, you cut out most of the cat piss.

Thanks, Tom. That makes sense. So do you have a percentage of sales / appointments a new person could expect? And for an experienced person? With FE it seems to be that around 15 or 20 % might be expected for a new person, at least as a goal. Then scooting up to 25 or 30 for experienced folks with 40% approaching superstar level.

 

[goillini52]

Thanks, Tom. That makes sense. So do you have a percentage of sales / appointments a new person could expect? And for an experienced person? With FE it seems to be that around 15 or 20 % might be expected for a new person, at least as a goal. Then scooting up to 25 or 30 for experienced folks with 40% approaching superstar level.

It's been so long since I sold my 1st Med Supp (44 years), that I don't have any figures Tim, but I'd think you should be at 25% bare minimum starting out.

 

[Gulfman]

It's been so long since I sold my 1st Med Supp (44 years), that I don't have any figures Tim, but I'd think you should be at 25% bare minimum starting out.

All this time i thought you were a MED.SUPS expert....had me fooled! LOL. What is your product line?

 

[goillini52]

All this time i thought you were a MED.SUPS expert....had me fooled! LOL. What is your product line?

I am a Med Supp guy that cross sells FE...don't know about an expert though.

 

[Gulfman]

I am a Med Supp guy that cross sells FE...don't know about an expert though.

Interesting...didnt you just say u above you haven't sold a med.sup. policy in 44yrs???

Or was that a misprint/misread?

 

[ExProgrammer]

Interesting...didnt you just say u above you haven't sold a med.sup. policy in 44yrs???

Or was that a misprint/misread?

He sold the first one 44 years ago.

 

[Gulfman]

He sold the first one 44 years ago. ?de2e

Ok....gotcha. Lol.

(never know around here)

Thanks (i knew that didnt make sense)

 

[TDFnCali]

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?

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....