Med supp market question

[Winter_123]

Is anyone having success working with a med supp carrier/carriers that have good rates but not the most competitive.

In my state a couple of the bottom of the barrel ones are in trouble so they are not much to compete with. However, AARP is by far and away the most competitive on Plan F, maybe 600 a year less than even the carriers with middle of the road rates. (I am in a community rated state, I do understand that AARP are not good elsewhere but that is not my case)

Humana also has highly competitive rates but they dont pay enough to cover your gas so they are out of the question.
AARP commissions are also el sucko.

On the other hand and on the downside for them, AARP has a pre X period for those who can't get around it. And AARP's plan G rate is not any better than some of the other companies such as Mutual of Omaha and in addition they have a pre X period as noted. Problem is their Plan F is only a 100 more.

What do you pros make of this selling environment scenario? Is anyone doing well with a carrier that has high name recognition such as Mutual of Omaha, good Plan G rates but only so-so Plan F rates. Or, do you end out severely handicapped in the long run if you are only offering good rates but not the absolute most competitive?

Comments please.

Winter

 

[Lloydlofton]

What age group are you working, t-65?

Try t-67 - 70, they have already had a med sup for a couple of years, had a couple of rate increases, have adjusted their "spending" lifestyle to their change in income from retiring, husband usually older than wife means wife is hitting 65 so you get "twin" sales, then do "needs-based" selling instead of price hocking med sups, that is ask questions to uncover how they "use" their health insurance, in other words ask questions about the things they use the most in the order they use these things.

Doctors, prescriptions, accidents, well-ness, hospitalization and at home recovery.

Then present med sup, part d, short term convalescent, final expense based on the things they use the most in the order they use them.

Present the med sup as the first plan then the same med sup and ancillary products as one package for the second plan. Use a dominant buying close "Of the two plans, which one do you feel will meet your nees now...and in the future?" (It does not matter what their answer is, if they say the first one you made a sale, if they say the second one you made more money, isn't that ture?)

Make sure to say the ancillary products are underwritten by a different company if they are.

You then only have to ask the questions that are "different" than the one's they answer on the med sup application.

I'm not saying the t-65 guranteed issue isn't a good market, it's just a market every other agent goes into, all carriers start their career force in and all seniors get over marketed to.

Few agents go for the t-67 - 70 because it takes more time, however an effective needs-based presentation can earn a better than average income, seniors are loyal, they will not change their doctor, their dentist, thier cable company, their newspaper or their trusted insurance advisor.

Just a thought.

 

[Frank Stastny]

What age group are you working, t-65?

Try t-67 - 70, they have already had a med sup for a couple of years, had a couple of rate increases, have adjusted their "spending" lifestyle to their change in income from retiring, husband usually older than wife means wife is hitting 65 so you get "twin" sales, then do "needs-based" selling instead of price hocking med sups, that is ask questions to uncover how they "use" their health insurance, in other words ask questions about the things they use the most in the order they use these things.

Doctors, prescriptions, accidents, well-ness, hospitalization and at home recovery.

Then present med sup, part d, short term convalescent, final expense based on the things they use the most in the order they use them.

Present the med sup as the first plan then the same med sup and ancillary products as one package for the second plan. Use a dominant buying close "Of the two plans, which one do you feel will meet your nees now...and in the future?" (It does not matter what their answer is, if they say the first one you made a sale, if they say the second one you made more money, isn't that ture?)

Make sure to say the ancillary products are underwritten by a different company if they are.

You then only have to ask the questions that are "different" than the one's they answer on the med sup application.

I'm not saying the t-65 guranteed issue isn't a good market, it's just a market every other agent goes into, all carriers start their career force in and all seniors get over marketed to.

Few agents go for the t-67 - 70 because it takes more time, however an effective needs-based presentation can earn a better than average income, seniors are loyal, they will not change their doctor, their dentist, thier cable company, their newspaper or their trusted insurance advisor.

Just a thought.

That is definitely one approach to take when selling seniors Med Supp policies.

I totally agree with your comments about selling to T-65 prospects. Each time I have tried it has proven to be not terribly productive. I expand my target market to those between the ages of 67 to 78.

I favor a more simple and direct approach. In Missouri virtually all doctors accept assignment. Seniors do not need a Plan F or a G and I don't suggest them. Plan D provides the benefits that they need and will use.

Your "needs approach" is a very interesting one but I have found that offering too many choices such as short term convalescent and final expense and also Part D all in the Med Supp presentation can be very confusing. It sounds more like a presentation a financial advisor would make.

That in of itself is a lot for a senior to digest let alone presenting a second choice to them. Helping them make a well informed, intelligent decision regarding their Med Supp policy is my main objective. The rest can come later.

During my presentation I only present Plan D and will compare it to the other plans when they request it. I explain that I want to show them what I believe is the best plan for seniors in Missouri. After I explain the benefits of Plan D then I field their questions and will compare other plans if they wish. Very seldom will they want me to explain the others.

However, we have drifted away from Winters original question.

Right now in Missouri ANTEX probably has one of if not the least expensive rates. Closely followed by United of Omaha. I presently am not selling either although I am licensed with both.

My company of choice for the last nine years has been Continental Life. Although they have not always been the cheapest, in my opinion they have been the best during that time. When I say "the best", they have had the fewest and smallest increases of all the other companies I represent during that time.

In an attempt to try to be one of the most competitive, Genworth has now introduced American Continental in Missouri. That is still the company of choice for me if the prospects can make it through underwriting. (I wrote five this week for them.)

They neither have the name recognition nor the temporarily "cheap" rates of companies like Mutual of Omaha but in my opinion they are a lot better. I explain to my prospect why I am recommending, now, American Continental.

I have never once had a prospect tell me that they want their Med Supp policy with one of the "big names" in the insurance industry or decline to take a policy from me because they didn't immediately recognize the name of the company.

A lot of questions have so many facets to them that they are really best answered during a conversation rather than sitting at a keyboard. The presentation is all important, both what is said and not said can make the difference between making the sale and walking out shaking ones head wondering what just happened.

So, I don't always sell the cheapest nor do I sell the "big guy" companies. I don't even sell insurance, I sell me.

If they will "buy" me, they will not only take a Med Supp policy they will also purchase one of the used Microwave's in the trunk.

 

[Thatguy]

Humana is paying me great commission. You might want to check with United Healthcare, Coventry, and CIGNA as well. If you are getting paid as-earned; that might be your problem. I suggest you find a new FMO if they aren't paying you enough to get an advance.
- - - - - - - - - - - - - - - - - -
P.S. The new "no advance" policy by CMS is not being enforced by a few major providers. So the bottom line is, there are still providers that are advancing.

 

[Frank Stastny]

Humana also has highly competitive rates but they dont pay enough to cover your gas so they are out of the question.
AARP commissions are also el sucko.

If you are only selling for the companies that pay the highest commissions you are going to have a tough "roe to hoe" in my opinion. When I was captive I made a lot of money and they paid 15%.

Although I haven't started writing for them yet, Mutual of Omaha is only paying 12.5% in Missouri. That is 1.5% above street level. Will I write apps for them? Hell yes when the need arises.

I will even drive to see them. My first year commission will more than pay for my gas to get there and back. I will go anywhere, any time someone wants to sign an app. (I only go on appointments when I know I have an 80% chance or better of making a sale.)

The only really good piece of advice I received when I first started selling insurance was "write apps". He said it doesn't matter if it is a $10 a month final expense app or a $500 a month LTCi app. He said I would make a lot of money selling insurance if concentrated on just writing apps. He was right.

Regarding the pre-existing you mentioned. It very seldom is a concern. If you are working seniors between the ages of 67 and 78 it almost never comes into play.

Selling Med Supps isn't rocket science. Jump in and paddle around for a while, the water will be a little choppy at first but you will find that smooth, calm water is just a few strokes away.

 

[Winter_123]

If you are only selling for the companies that pay the highest commissions you are going to have a tough "roe to hoe" in my opinion. When I was captive I made a lot of money and they paid 15%.

.

Oh indeed but Human only pays 8% commission give or take. I am a business person with expenses, not a serf.

 

[GreenSky]

Oh indeed but Human only pays 8% commission give or take. I am a business person with expenses, not a serf.

Damn Republican, Conservative, Christian, Capitalist! (Just in case Al doesn't read this thread, I thought I'd add that).

Rick

 

[Frank Stastny]

Oh indeed but Human only pays 8% commission give or take. I am a business person with expenses, not a serf.

I agree that is low. I assume that you are going on appointments, "old school" as opposed to looking to become an "underwear agent".

You have stated that "Humana also has highly competitive rates". Lets assume you go on an appointment, the prospect is extremely "tight" with his money. In my experience it's usually the ones with the most money that give me the greatest amount of grief over literally a dollar a month in premium.

You have "pitched" your company of choice and sense that they are going to keep shopping and you are going to walk out without a signed app. (My average Med Supp appointment will take around 1 hour and 45 minutes.)

Which is better, to cut off your nose to spite your face by not licensing with Humana or have it available to offer so the appointment is not a total waste of your time?

Eight percent of the premium is "something". Twenty percent of a not getting a signed app is zero.

I believe there is a little "serf" in all of us. The only difference is in one's definition of of what makes one a "serf".

United World street level in Missouri is 11%. Agents are selling the hell out of it. Are they serfs? Maybe. Are they writing a lot of apps? Probably. Does writing a lot of apps make agents money? Most definitely.

Never say never. I swore on a sacred bottle of scotch I would never get married again. Am I married now? Yep. Is it the best thing I have ever done? Most definitely.

 

[MedSuppPro]

My company of choice for the last nine years has been Continental Life... In an attempt to try to be one of the most competitive, Genworth has now introduced American Continental in Missouri. That is still the company of choice for me if the prospects can make it through underwriting.

If they will "buy" me, they will not only take a Med Supp policy they will also purchase one of the used Microwave's in the trunk.

Frank,

Don’t ya think your taking this “Continental” thing a little too far?

Recently, GreenSpy spotted you leaving his former client’s house with a microwave and caught footage of you driving your Lincoln Continental out to the Mojave desert.

In California, dumping used microwaves within 48 hours of a Medicare Supplement Replacement is a punishable offense.

I know, you where trying to loosen that load with seven sales on your mind…

 

[Frank Stastny]

Frank,

Don’t ya think your taking this “Continental” thing a little too far?

Recently, GreenSpy spotted you leaving his former client’s house with a microwave and caught footage of you driving your Lincoln Continental out to the Mojave desert.

In California, dumping used microwaves within 48 hours of a Medicare Supplement Replacement is a punishable offense.

I know, you where trying to loosen that load with seven sales on your mind…

Very clever.

I'm not a big fan of Ford products but those Lincolns with the suicide doors are very cool.