Med Supp Application Fee

[azmedsupagent]

As a captive medsup agent looking to make the move to indy im having a hard time digesting this idea of asking my clients for an application fee when I take a med sup application. Do you guys encounter much resistance when the time comes to bring up the $20 app fee?

 

[tins]

As a captive medsup agent looking to make the move to indy im having a hard time digesting this idea of asking my clients for an application fee when I take a med sup application. Do you guys encounter much resistance when the time comes to bring up the $20 app fee?

I do not like them. Med Supps aren't such a big deal since it's small compared to the premium. The supplemental stuff is more annoying since it pretty much doubles that first month's premium. I've never had a client back out of an app once I tell them there is an applicaiton fee (I don't bring it up until after I've started the application), but it's annoying selling indemnity or cancer plans at 20-30 dollars a month and then asking for another 20-30 dollars for the application fee.

 

[azmedsupagent]

Oouch! yeah thats rough... Im thinking the best way to explain the med sup app fee is that the companies with out them are often much more expensive. Maybe ill just pull out a rate sheet and show them the difference.

 

[Guest]

What company has an app fee?
Never heard of this

 

[senior-advisor-indiana]

What company has an app fee?
Never heard of this

Probably 95% of them. An easier question to answer would be what companies don't. I know moo doesn't, can't think of any other ones off the top of my head.

 

[grod]

Probably 95% of them. An easier question to answer would be what companies don't. I know moo doesn't, can't think of any other ones off the top of my head.

AARP doesn't have a fee either.

 

[openmindedone]

Its not an issue. Tell them most companies charge a small fee to offset the cost of underwriting and policy issue. You can offer them moo or aarp without it, but do they want to pay higher every month to avoid a one-time fee? Make the sale first go, over the initial premium being a little higher after. Never been a deal breaker.

 

[senior-advisor-indiana]

AARP doesn't have a fee either.

They charge you a membership fee though.

 

[SportsNut]

They charge you a membership fee though.

Yea... good point SAI.

Which would a client rather pay; a one time $ 25 fee or $ 16 annually? Also with AARP one cannot neglect the infamous disappearing discount at a rate of 3% per year over 10 yrs. Then when the client is possibly uninsurable their rate is guaranteed to be above mkt rates in most markets. AARP - NOT!

PS. My wife just got another AARP solicitation for membership in the mail yesterday. Nothing burns her up more than that outfit reminding her of her age.

 

[openmindedone]

Yea... good point SAI.

Which would a client rather pay; a one time $ 25 fee or $ 16 annually? Also with AARP one cannot neglect the infamous disappearing discount at a rate of 3% per year over 10 yrs. Then when the client is possibly uninsurable their rate is guaranteed to be above mkt rates in most markets. AARP - NOT!

PS. My wife just got another AARP solicitation for membership in the mail yesterday. Nothing burns her up more than that outfit reminding her of her age.

You have to be an aarp member to apply for the medigap. You dont need to keep up the membership to keep the medigap. So its kind of like a policy fee. No residuals past 6 years gets me.