I currently sell individual health insurance, but not sure about the senior market. My concern is where is best to start on leads... With the strict marketing guidelines and all. Suggestions welcome. My experience with a lead company before was worthless so I prefer not to buy leads. Thanks!!
When you say, "strict marketing guidelines", it appears you are referring to Medicare Advantage plans, not Medicare Supplements.
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- #4
First, if you want to make money in the senior market you'll have to sell Med Advantage plans because few seniors can afford the $150+/month high-end med sup plans.
By contrast, Med Advantage plans run $50-$60/month. The commissions on the Med Advantage plans are also frequently higher than the commissions on Med Sup plans.
The senior market is also tricky whether you're selling Med Supp or MedAdvantage plans, in my experience. Both types of plans are unbelievably complicated and CMS keeps a tight reign on people selling any medical-related programs to Medicare recipients. If someone files a complaint against you, expect to be treated like you're guilty until you're proven innocent.
And truly, most of these plans provide similar benefits. So unless you get people right when they turn 65 and they need an initial plan, they're unlikely to need to switch plans and advising them to do so can get you in hot water, again.
Plus there's always the tricky issue of assessing the mental acuity of people you're working with in any field :-) But with the senior crowd, this issue can be a nightmare.
I know honest agents who have had perfectly reasonable conversations with seniors, changed their plans, and then gotten reamed out by family members because that person had early onset dementia, Alzheimers, etc. It's not always apparent when people have conditions affecting their judgement.
I liked working with the senior crowd but concluded that the legal risks associated with selling Med Sups or Med Advantage plans outweighed the financial benefits of doing so.
So, I advise you to stay out of the market unless you want to deal with unending paperwork and legal hassles.
Good luck!
By contrast, Med Advantage plans run $50-$60/month. The commissions on the Med Advantage plans are also frequently higher than the commissions on Med Sup plans.
The senior market is also tricky whether you're selling Med Supp or MedAdvantage plans, in my experience. Both types of plans are unbelievably complicated and CMS keeps a tight reign on people selling any medical-related programs to Medicare recipients. If someone files a complaint against you, expect to be treated like you're guilty until you're proven innocent.
And truly, most of these plans provide similar benefits. So unless you get people right when they turn 65 and they need an initial plan, they're unlikely to need to switch plans and advising them to do so can get you in hot water, again.
Plus there's always the tricky issue of assessing the mental acuity of people you're working with in any field :-) But with the senior crowd, this issue can be a nightmare.
I know honest agents who have had perfectly reasonable conversations with seniors, changed their plans, and then gotten reamed out by family members because that person had early onset dementia, Alzheimers, etc. It's not always apparent when people have conditions affecting their judgement.
I liked working with the senior crowd but concluded that the legal risks associated with selling Med Sups or Med Advantage plans outweighed the financial benefits of doing so.
So, I advise you to stay out of the market unless you want to deal with unending paperwork and legal hassles.
Good luck!
- 7,066
You are saying that "tongue in cheek" aren't you?
I agree with your assessment of MA plans but there is nothing simpler or "safer" to sell than Med Supps. So much so that companies that offer Med Supps don't even require an agent to carry E&O insurance.
I have built a career, over the last eighteen years, selling Med Supps to people who already have a Med Supp. I save all of my new clients money and they love me for it.
It is the simplest learn, easiest product to prospect for, get appointments for and to sell of any insurance product I have sold.
I'm still doing it and I haven't spent one day in the "clink".
Chazm,
I think he is "pulling our leg".
- 4,707
Speak for yourself.
I can sell a med supp in my sleep.
The hard part of a zero premium MA sale is explaining to the applicant why they need to select a "premium payment option".
- 7,790
I am glad that you answered that Frank. I was going to refer jlchan33 to you for an opinion. He must be kidding!
