“It’s just too hard, I don’t want to do all of that testing, too much work for a little commission, I’ll just give it away, I can then only sell a Medicare policy to them.” I hear these phrases so often when talking about Medicare Supplements, but it still shocks me each time I do because there are so many misconceptions about selling Medicare. I just want to clear up some of the myths around selling Medicare Supplements.*
First – It’s too hard. Are the products too hard? What many don’t realize is that the supplement plans are standardized by Federal regulation. Every Plan G is created equal. And most carriers have a cover sheet on their rate sheets (yes rate sheets) that show the benefits each plan has on a grid. And if you still have questions – call me! Not sure who can buy what when? I did a short video that is on our website about that, and if you still aren’t sure – again call me!
Is finding clients too hard? There are literally thousands of people enrolling in Medicare everyday. How many clients/friends/family/neighbors do you have that are turning 65 in the next 7-10 months? Start there. Do you know when your client is retiring? That might the time they are making decisions about Medicare. Have group clients? Talk to the benefits person and ask for a heads up when someone is retiring and talk to them about their post retirement health options. And by the way – Medicare is a great source of referrals from other clients!
Second – I don’t want to do all of that testing. If you’ve already passed your health license from the state, that’s all the testing you need to do for most carriers. All that testing is referring to AHIP & product certifications. That is not needed for most Med Supp carriers, it is needed for the Advantage plans.
Third – Too much work for too little commission. First the work isn’t a much as you think it is. Most carriers offer e-applications, and even paper applications can be issued in a day or two if submitted IGO. Second – too little commission. Maybe, if you only look at the first year don’t factor in the fact that renewals are the same as FYC for 6 years. Take a look at this chart that shows how they can grow by writing 2 couples a month.
Fourth – I’ll just give it away. I understand you might not want to risk a relationship with a valued client if you aren’t 100% confident in what you are doing (and again, that’s what I’m here for!) But unless that person you are giving it to is in your office, how do you know they won’t take other pieces of business from you? I had an agent in one of my CE classes several years ago. I always start my asking what ever one hopes to get out of the course. He answered, I was referring my med supp business to a “friend”. Never got a referral in return and I just found out he replaced my life policy! Don’t give away your commissions and your clients!
Fifth – I can then only sell a Medicare policy to them. Just not true. What people are confusing are the scope of sale forms that are needed for Medicare Advantage sales. Simply put if you are selling a traditional supplement, you can talk to the client about anything else at that same appointment. It’s when you are dealing with Advantage plans that you have to comply with required scope of sale forms and sticking to what was on that form at that appointment.
So now that I’ve cleared up some of the myths around writing Medicare Supplements, what else do you need to know? Well, Underwriters Marketing Service offers some of the top national carriers with competitive rates and renewals. Check out the cumulative effect of selling just a few Medicare Supplement policies a month!
We have the same service that we offer for all lines of business – custom marketing materials, case consultation and our follow through with the home office to make sure your cases are issued as quickly as possible. So, the next time you have a client ask you if you do supplements, or notice a client turning 65 in the next few months, don’t back away from it. Call me & we can walk you through it!
*Please note by using the term “Medicare Supplements” I am referring to traditional supplements, and not Medicare Advantage plans.