Anything Similar To Aflac ?

[rousemark]

Do those policies qualify as insurance? Should they even be sold? Subtract commission from premium and notice how much is left to pay claims.

Humana has a payroll deduct product that pays $150 for getting a wellness visit after 3 month wait. Group major med covers wellness at 100%. Annual premium at younger ages is <$150. Street commission not counting over rides is 35%. Anything left for claims?

Subtract 135% first year and 15% renewals from FE plans and then ask how much is left to pay claims. The premium is not the only source of income a policy generates for a company. I haven't seen the Humana product you are talking about but it doesn't sound as if you are factoring in under-utilization. I can gurantee this, a large portion of people never file the wellness claim so that is money in the bank. I know this based upon a cancer screening benefit AGLA offers.. People will have a screening test and never file. I called on a client three months ago and she told me both she and her husband had had screening tests done for each of the last two years. I explained thebenefit to her, filled out their portion of the claim forms and left it with her to take to their doctors.. Still waiting. Even my wife hasn't asked her doctor for a copy of her mammogram bill so I can file her claim.

I don't know how long you have been in the business but it sounds like you might need a little better understanding of underwriting loss and profit in relation to actual company loss and profit. Don't mean this as a slam, but if that is the case, a little more knowledge will make you feel a lot more comfortable with the items you choose the sell.

 

[vshafir]

There are many companies that have supplemental plans, but most sell them as worksite benefits. Aflac, Colonial and many others will sell some of their products on an individual basis, but at higher premium. Combined insurance will sell DI on a direct basis, while others won't.

 

[junkman]

Subtract 135% first year and 15% renewals from FE plans and then ask how much is left to pay claims. The premium is not the only source of income a policy generates for a company. I haven't seen the Humana product you are talking about but it doesn't sound as if you are factoring in under-utilization. I can gurantee this, a large portion of people never file the wellness claim so that is money in the bank. I know this based upon a cancer screening benefit AGLA offers.. People will have a screening test and never file. I called on a client three months ago and she told me both she and her husband had had screening tests done for each of the last two years. I explained thebenefit to her, filled out their portion of the claim forms and left it with her to take to their doctors.. Still waiting. Even my wife hasn't asked her doctor for a copy of her mammogram bill so I can file her claim.

I don't know how long you have been in the business but it sounds like you might need a little better understanding of underwriting loss and profit in relation to actual company loss and profit. Don't mean this as a slam, but if that is the case, a little more knowledge will make you feel a lot more comfortable with the items you choose the sell.

Been in the business since 1985 and have a good understanding of underwriting and premium construction. Under utilization is one reason why group dental can cost less than the actual preventive benefits.

Small policies are loaded for lots of reasons. Regardless of the reason, it doesn't make them a good buy for the insured. Early in my career, I rode with an experienced agent selling supplemental health. One (old) person whose wife was very sick only collected little because most of the work was out patient and not covered. The agent sold him a more expensive policy that also didn't cover much. It was akin to stealing in my opinion and I looked for another agency.

FE are small policies with little underwriting. Life contracts in general have a much longer time until claim payment than health. Few would bother to sell them if commissions weren't high. Are they a good deal for the insured? It depends on how much money they have and whether they can buy something else.

FWIW, carriers do not charge each other a first year premium for re-insuring a life contract that was recently underwritten. The reason is that anyone healthy enough to pass underwriting isn't likely to die in the 1st year.

I recently rented a car & had the person tell me with a straight face that paying ~ $10/day for insurance to cover my deductible was a good deal & that he always buys it himself whenever he rents. Two seconds of arithmetic shows that $10 x 30 days = $300 for a contract ostensibly covering the deductible and not much more. He didn't have a copy of the contract available so there was no documentation of what is covered. Regardless, I declined.

You get what you pay for ...... Sometimes. Other times, you get less than you pay for or at least less than you would pay for if you understood the contract and what is covered.

To the OP, lots of carriers are jumping into the supplemental market. AFLAC advertises a lot but doesn't necessarily have the best products. Still, chasing infrequent individual policies won't be productive because of the amount of research required to find something decent. If you're going to do the work, you'll need a source of more prospects to make the process worth while.