25 year old needs short term health insurance policy

Dec 5, 2007

  1. loginname
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    loginname Expert

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    I normally don't sell health insurance, but I need to help a client's son. He is going off of their medical plan because he turns 25 at the end of December. I know an agent who sells health so I'll probably split the case with him.

    My client is a 25 yr old male with no medical problems, no pre-existing conditions, and height weight are great. He's looking for a $1000 deductible policy to cover him until he gains employment after law school in 8-9 months.

    Which companies should I look at? I ran some quotes on Assurant's website. Will they appoint me for probably just one case? Do they have good rates? What other resources should I look at? The premium appears to be about $100/month for the coverage we are seeking. What does a health agent get paid on something like this?

    Inform me!

    Thanks
     
  2. TXINSURANCE
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    TXINSURANCE Guru

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    I personally would advise against short term.

    What if he DOESN'T gain employment? What if has a major sickness or accident during this period and his short term runs out and he can't buy another one?

    There are a lot of "what if" scenarios that could be a problem.

    We sell short term if someone is certain group benefits will kick in or we pair with a long term that might get stuck in underwriting.

    I think people buy short term for all the wrong reasons most of the time. It is certainly an option, but I had someone's father call me from a hospital lobby saying their child is having diabetic shock and the short term runs out tomorrow "can I buy another one?"....

    Or... someone bought a short term, because they were "getting a job"... they never got the job. In the meantime they had a MAJOR skiing accident - it was all paid for by the short term, but they had a VERY hard time getting IFP with the recent issue, everyone was declining them.

    For a 25 year old - I would argue in this scenario get IFP , play it safe and cancel anytime.
     
  3. somarco
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    somarco GA Medicare Expert

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    STM is for folks who KNOW they have a job with benefits waiting for them, preferably in 90 days or less. You can also use it when your client will not qualify for a traditional major med plan (since underwriting rules are more relaxed).

    I agree with TX. Write a regular major med.

    As for splitting the case, unless you are in a high premium area, forget the split. There is not enough commission in a 25 yr old to split. You will earn more in good will by giving it away than you will by asking for a split.

    I have quite a few 25 yr olds on the books. Those $10 -$15 monthly commissions add up but nothing worth splitting.

    Stick to what you know best and rather than asking for a split cultivate the relationship in hopes of getting reverse referrals.

    I give away all my Med Supp business to another agent and he returns the favor in kind. It is a good working relationship for both of us.
     
    somarco, Dec 5, 2007
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  4. loginname
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    loginname Expert

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    I'm going to refer this to another agent most likely. Who do you think he will suggest for major med or 12 month short term in Minnesota?
     
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