Insurance Agent Forum

[al3]

Please go to this site:
GAC Quote

And look at:

1. The Value Health Plan (by AIG)

And

(choose your state)

2. The Value Med Plan (by GTL)

(The Value Hospital Plan is worthless, IMO).

Please keep this question in the context that these are NOT major med and should not be used in PLACE of major med coverage. However for someone who can't get (afford) anything else (including state risk pool) are these better than nothng? I think so. I have a friend who is a very successful long-time agent who sells these plans with great success to his target market (hard to insure people.)

All opinions welcome.

Thanks,

Al(ice)

[GreenSky]

All these plans simply give people the feeling they have coverage. Instead of having a $100,000 hospital bill, they only have an $85,000 bill. Either way, they're broke.

Plans are basically worthless since they don't insure what people can't afford - a major claim. They do help pay for the $100 office visit though.

Alice, what's your opinion of this? I doubt that anyone here likes them. Tell us why you do.

Rick

[BKrocko]

Actually, I offer the VBA accident plan to my clients with every policy, you didn't list it here but you can get contracted for it with GAC as well.

Most see the value in having it - I usually sell 80/20 policies with at least a $2500 ded so having an accident plan in place for the family is a good thing. If an accident occurs, the most it will cost them is $100 to meet their deductible. They can choose a higher level of accident protection for about $10/mth more.

The $2500 plan is only 29.95/mth and covers the whole family - heck, the $5000 is only $39.95 for the family. If you use that plan just one time, it will pay for itself. It is a great supplement to any MM policy.


I don't mess with the other products - only the accident plan.

[GreenSky]

Originally Posted by BKrocko

Actually, I offer the VBA accident plan to my clients with every policy, you didn't list it here but you can get contracted for it with GAC as well.

Most see the value in having it - I usually sell 80/20 policies with at least a $2500 ded so having an accident plan in place for the family is a good thing. If an accident occurs, the most it will cost them is $100 to meet their deductible. They can choose a higher level of accident protection for about $10/mth more.

The $2500 plan is only 29.95/mth and covers the whole family - heck, the $5000 is only $39.95 for the family. If you use that plan just one time, it will pay for itself. It is a great supplement to any MM policy.


I don't mess with the other products - only the accident plan.

I'm okay with this the way you use it, as a supplement. I think Alice was considering using these plans in lieu of real insurance.

I think they are worse than nothing as they 1) give the impression that there is a value and 2) all they do is give the agent a commission.

Rick

[al3]

Originally Posted by GreenSky

I think they are worse than nothing as they 1) give the impression that there is a value and 2) all they do is give the agent a commission.

Rick

You make a good point. I'm on the fence with these. I disagree that they are better than nothing but not sure how MUCH better.

So if you have a client who can't get major med and can't afford the state risk pool, but can afford one of these plans, you would refuse to offer it on the grounds you stated above?

Just asking... not debating. It's a fair question. How are we supposed to learn if we don't ask?

Al(ice)

[GreenSky]

Originally Posted by al3

You make a good point. I'm on the fence with these. I disagree that they are better than nothing but not sure how MUCH better.

So if you have a client who can't get major med and can't afford the state risk pool, but can afford one of these plans, you would refuse to offer it on the grounds you stated above?
Al(ice)

That is correct. I will not offer this type of a plan. I feel it's a ripoff.

If someone can't afford even the state risk pool, how could they afford even half of a hospital bill.

The only ones making out with this stuff are the insurance company and the agent.

Perhaps I'm too ethical in this case. I won't sell something unless there is a benefit to the client. Others sell anything even when they know better, are taught better, or just can't figure things out.

Rick

[James]

The choosing of a Mini Plan (of course some are better then others) by an individual is the individual choice. It isn't a Ethical or Moral decision, BR's from unpaid medical bills if my memory serves me in general are in the range of $7-15 grand, many mini plans would of save those and serve many well. As Governor Bredeson has stated: "Let us sell people what they want and not what we want!", while CoverTN was being debated in our Great State of Tennessee.

[TXINSURANCE]

The problem is these associated plans are loosely regulated and you are selling a "club" MEMBERSHIP and the club members have XXX benefits.

Most eventually go out of business or rates get real high.

Complaint and lapse rates are sky high on limited or association plans - expect major charge backs.

That being said VBA is hands down the ONLY group I will deal with - they appear to be a top notch operation, that being said they could still fall apart like any other "association"

[al3]

Originally Posted by GreenSky

That is correct. I will not offer this type of a plan. I feel it's a ripoff.

If someone can't afford even the state risk pool, how could they afford even half of a hospital bill.

Your point is well taken, but the Value Health Plan - Platinum (says it) will pay $1,000 a day for hospital up to one year and 20K for surgery. I've not seen the EOC, but if this is on the level, I would not call it a rip. It's not major med, obviously but it looks like it would pay for your average gall bladder removal, broken leg, or prostate surgery.

Besides your general aversion to mini-meds (an aversion I share but my mind is open to them when 'necessary') do you have any experience with this particular plan?

Al(ice)