AARP Levels Commissions 6 years

[MedSuppPro]

Just received AARP's new six year level commissions schedule.

It beats UW or MA's over the six year period.

Thanks AARP!


Oh, did I forget to say easy underwriting!

 

[sman]

Just received AARP's new six year level commissions schedule.

It beats UW or MA's over the six year period.

Thanks AARP!


Oh, did I forget to say easy underwriting!

What kind of contract do you have with UW? I get 17% years 1-6 and 8% or 9% years 7-10. The memo I received on the AARP Med Supp is only a slight increase. Prior to the memo I would get $270 in year 1 and $172 in years 2-6. Now it's $210 for years 1-6. So now it's about the same as UW (for me anyway) except UW pays through year 10. Which means if a person kept the Med Supp that long, I'd make more with UW.

Doesn't make much difference right now though, they have yet to release the AARP Med Supp in my state.

 

[retread]

I'm not impressed with the new structure. My commission drops $60 for the sale, and increases only $38/yr over the next 5 years. $130 spread over 5 years is not much, when I can get considerably more than that with the same amount of time and effort spent on an MA sale. Let's see how that measly $38 will hold up under inflation and the loss of clients due to death, switching to MA plans due to recessionary economy, and the chance UHC will find a way to restructure it lower after a year or two.

Also, consider how this will affect your commission in a couple of years as the contract UHC has with AARP ends. As we get closer to the end of this contract period, the less chance we have of collecting on the extended schedule.

Finally, as seniors become more savvy, (the baby boomers) they will be less inclined to opt for AARP like the former generation due to its higher cost.

You would think sales management would increase commissions to meet the challenge of MA plans. Must be some young kids running things at UHC. The "best and the brightest" usually go for the cheap without regard to future consequences.

 

[SHELLYA]

do you sell the aarp med sup-----if so how do you become licensed?

 

[theinuranceguy]

do you sell the aarp med sup-----if so how do you become licensed?

SHelly ... Welcome to the Forum...

To get licensed with AARP Med Sup, you have to go through a Secure Horizons FMO...

 

[rmalcom]

I'm not impressed with the new structure. My commission drops $60 for the sale, and increases only $38/yr over the next 5 years. $130 spread over 5 years is not much, when I can get considerably more than that with the same amount of time and effort spent on an MA sale. Let's see how that measly $38 will hold up under inflation and the loss of clients due to death, switching to MA plans due to recessionary economy, and the chance UHC will find a way to restructure it lower after a year or two.

Also, consider how this will affect your commission in a couple of years as the contract UHC has with AARP ends. As we get closer to the end of this contract period, the less chance we have of collecting on the extended schedule.

Finally, as seniors become more savvy, (the baby boomers) they will be less inclined to opt for AARP like the former generation due to its higher cost.

You would think sales management would increase commissions to meet the challenge of MA plans. Must be some young kids running things at UHC. The "best and the brightest" usually go for the cheap without regard to future consequences.

You are missing the point with the move that AARP made. Before you were paid the lower renewal amount (years 2-6) if you replaced any other Medicare Supplement. If most of your sales are to turning 65 year olds you have a valid argument, but like most of us, we can take this product to a 95 year old with no underwriting and move them to AARP. This is where this product fits. Not with turning 65 but with those that are not healthy and stuck in the death spriral of the Med Supp carrier that just keeps increase their rate and health wise cannot move. Now look at your book and say it was a bad move. I have my contract with Senior Market Sales in Omaha, Senior Market Sales. They treat me right.

The new baby boomers are more savy and will not like the POS MA's on the market.

 

[insurance0707]

Does AARP allow agents to sell this through the mail?