Another Major Health Player
- Thread starter J.R.
- Start date
Extend Benefits is the company Paul Pilzner is affiliated with and the one who made a big splash announcement several months ago related their endorsement by Sams Club.
- 14,808
Damned if you do and damned if you don't. You deal with an agent on commission then client can get a wrong recommendation. You deal with an agent on salary and the client can get an agent who frankly doesn't care.
I'm for 100% commission. 100% commission quickly weeks out the most unethical agents since either chargebacks on advances, or lapses on as-earned gets them out of the business.
But put a team of agents in cubicles on salary and there's no incentive to match the client with the right plan or service the policy. And if you get "$200" for doing an app regardless of what you sell you're most likely going to take the path of least resistence and just recommend based on the lowest price. You think they're gonna get into a HSA presentation?
When I called Ehealth JR the first recommendation was Copay Saver. I called back a day later to speak with a different rep and they to recommended CoPay Saver. I have to wonder if there's an added incentive for them to sell that plan? Who knows. Assurant isn't exactly clean either. Go to their site and get a quote and you'll see "MOST POPULAR!" next to Right Start.
Safe to say the GR and Assurant are both publically traded companies and both have huge financial incentives to push "saver" and "right" plans.
M
Mike_Golden1
Guest
It's one thing to shop for auto insurance and buy it online or over the phone. Why would anyone make as important a decision as health insurance, where a wrong choice could either be life threatening or risk bankruptcy, without knowing who you are dealing with? I'll never get it...
- 11,280
I would think that would be true with all insurance Mike.
Not necessarily when it comes to Auto insurance, it is pretty much what it is. Not nearly as many moving parts to consider. Correct me if I'm wrong here, but are there any P&C companies that have limited plans?
What if Mega were to jump into the auto insurance crowd? LOL!! Scary!
- 14,808
What if other insurance did what some health insurance plans did:
Car insurance: Clause that it's $2,000 max coverage for any accident that happens during rush hour. All parking lot accidents are not covered.
Homeowners: Clause that it's no covered at all if your house burns down due to any electrical fire.
Life: Clause that the max benefit is $5,000 for any death related to cancer or a heart problem.
Car insurance: Clause that it's $2,000 max coverage for any accident that happens during rush hour. All parking lot accidents are not covered.
Homeowners: Clause that it's no covered at all if your house burns down due to any electrical fire.
Life: Clause that the max benefit is $5,000 for any death related to cancer or a heart problem.
Auto carrers in most (if not all) states are required to offer "minimum" coverage. These plans are indeed stripped down with very limited liability coverage. If one of these insureds injures you, that means your chances of recovering on a major claim are slim. You may collect $50,000 or so, but the rest will have to come from your insurance or your pocket.
I have clients & friends who have run up $500,000+ in auto accidents in just a few weeks. We have a family friend who was in a serious accident almost 4 years ago and is still recovering. Her medical bills exceeded $1M quite some time ago.
I have clients & friends who have run up $500,000+ in auto accidents in just a few weeks. We have a family friend who was in a serious accident almost 4 years ago and is still recovering. Her medical bills exceeded $1M quite some time ago.
Most P&C plans are limited. In fact, the limits are more involved than health insurance. Usually though, the coverage is clearer. You have an accident, it's covered, if you bought that coverage, but up to the limit you buy, no more.
If health was sold like P&C, you would pick a deductible for accidents, a deductible for illnesses, and a cap for coverage. The state would require that you carry at least $5000 in health insurance coverage. Nobody would ever figure out how they came up with this number.
Also, keep in mind, with auto policies, one of the biggest benefits you get is the legal team that will defend you, a risk not normally associated to health policies. If you get into an accident, get sued, your insurance company will defend you (actually, they will defend their money) in court, up to your liability limits. Of course, if you don't have the right coverages, they won't bother. They can write a $15,000 check without blinking, and let you pay for your own legal defense to protect anything above that.
Both P&C and health have lots of moving parts. Life is the uncomplicated one, unless you tie it up with cash value stuff..... Face it, insurance companies like complicated things!!!!
Also, from what I understand, the 'online' auto insurance companies have all had to add a 'talk to someone' type of button, because nobody felt comfortable buying insurance online without someone guiding them and explaining it to them. Pure online insurance has not done so well. The hybrid solution is picking up.
Personally, I like it when people come into my office after shopping for insurance online. I almost always get them better rates and better coverage. The online systems don't do a good job of knowing the rules and how to get additional discounts, and when the various moving parts can be put together in a different way. That's where a good agent comes in, regardless of the type of insurance.
Dan
- 14,808
Well, you have those "hidden" limitations in car insurance policies. For example, my new Bonneville at the time racked up over 15K in mileage quickly and I got into an accident - front end. Turns out they don't have to use factory parts - just aftermarket. Shop said they can't use aftermarket on my car since nothing will line up right. I lost and it was in my policy - no factory parts. Car looked like ****, I sold it and cancelled the policy just for spite.
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