Alternative to Selling Health Insurance?

Sep 21, 2007

  1. GreenSky
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    GreenSky Guru

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    I'm concerned that our ability to earn a living selling health insurance is going to be severly limited in the future. California just about ready to mandate coverage which I believe will either force or allow carriers to cut our commission. When you need to buy something, you don't need to pay salespeople.

    I've been looking at Critical Illness plans as an alternative. I understand that in England, this type of plan has great penetration. Perhaps when clients don't pay insurance carriers for health insurance, they are more willing to buy other plans.

    I'm looking for feedback from people who have sold CI. Is it an "easy" sell. Do people see the need?

    By the way, I'm not giving up on Seniors but would like to continue dealing with people who don't drool. Also, I have owned CI myself for 7 years.

    Rick
     
    GreenSky, Sep 21, 2007
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  2. Guest
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    From what I understand most (stand-alone) CI plans have low premiums such that I don't think you could earn a living on them unless you can do volume via group.

    I sell these via Colonial to groups (Aflac has similar plans). The rate for a CI with Cancer for a 40 year old non-smoker is $1.28 per $1,000 coverage (per month). $5,000 min, $50,000 max. So $20,000 policy will cost $25.60 a month. I would assume that non-group plans would not cost much more than that.

    I think the alternative to selling IFP is selling group or worksite which is why I stay with Colonial, although I do more IFP than worksite right now.

    Worksite is a slow sales process, especially for larger groups. And sometimes you have to go through their broker (who can often bring you biz if they like you. Colonial will commission a broker. Good deal for them for just making a phone call introducing you!)

    HTH.

    Al
    Adams-Blake Insurance Solutions
     
    Guest, Sep 21, 2007
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  3. James
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    I would think if you are good at selling H/C, DI would be a natural progression. Bill it as the, "Other Half of H/C". As Al stated, you can do individual with Illinios Mutual for Bluecollars and group with them and Colonial. Now I refer to most small business as bluecollar in general, understand this may or may not be what you are now targeting with H/C, small business and individuals.
     
    James, Sep 21, 2007
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  4. GreenSky
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    GreenSky Guru

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    Actually I wasn't talking about group at all. I don't do worksite and frankly think that most of the products, while convenient, are overpriced.

    I just placed a plan with Assurity and it appears they have a terrific policy. $50K for a 40 yr. old woman was about $700 per year (@ 80% commission).

    My thinking on this is that if we are going to (at the least) take a commission reduction on individual health, perhaps this is a product we can sell successfully.

    I was hoping someone on this board was writing this type of coverage and what the acceptance had been.

    Rick
     
    GreenSky, Sep 21, 2007
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  5. Winter_123
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    Did a critical illness plan for a 52 year old client a couple months ago. Went with Mutual of Omaha. He has grand mal epilepsy and Assurity wanted to rate him up. Mutual of Omaha let him in at standard.

    Winter
     
  6. Consultant
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    Do you have references I can read on this?

    Thanks

    Sean
     
  7. Guest
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    What CI plan did you sell?

    A $50K plan with Colonial would cost $768 a year. The problem is that the commission is only 27% if you open (ie. sell the account) and an additional 15% if you enroll... 45% if you do both.

    What does Assurity got? I'm interested in this approach as well.

    Al
     
    Guest, Sep 21, 2007
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  8. James
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    I have had no luck with CI, even with Sterling an them pushing the Combine CI, no luck! Plus everything I see the sales are fairly flat and not living up to billing or the success CI had in the UK.

    But, they keep saying that it'll catch on, maybe so? Yet, I use it as a fall back to DI, I really can not see someone choosen CI over DI if they can afford one or the other.
     
    James, Sep 22, 2007
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  9. James
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    Just curious, are you talking about Assurity Balance?
    http://www.bmcagency.com/documents/PrGuideFull_CI.pdf
     
    James, Sep 22, 2007
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  10. GreenSky
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