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Wondering if there is any actuarial evidence on how long Med Supps remain in force? Obviously the state that has the birthday month GI and rate increase history will affect the avg.
Average Life of a Med Supp?
- Thread starter jacobtn
- Start date
- 15,319
It's an interesting question and since I'm in a birthday month state I'll give you my impression here.
I still find most people have the same med supp they took out when T65. You might expect more movement between plans but I don't think this is the case - at least not as much as one might expect.
Probably one of the biggest reasons for this is that few insurance agents really specialize nor even know the med supp market. They dabble in it as a small part of their practice. This is probably why UHC has 40% of the market (or more) in most states. Agents just don't bother with helping seniors so prospects buy direct.
The other issue is that agents here don't bother explaining that there are other plans besides F. When I contact those who come to my website it's almost universal that they're shopping Plan F. "Why plan F." "It's the best!" Then I have to explain that their friends are generally wrong and didn't go to insurance buying school.
Getting back to your question. The life of most supps seems to be almost the same as the life span of the beneficiary.
Rick
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My guess would have been 5-6 years on average. Most people I sell to have only had their plan for a few years and usually end up switching to another through me 4-5 years later depending on rate increases.
Continental is still paying on a few of the plans I wrote over 20 years ago.. The insureds are in their early 90s.. I agree with Rick. I saw very little movement from one company to another except when I moved them becasue the premiums had gotten to the point that it was in the best interest of the insured to make a change. It was very rare to get replaced by another agent or a direct mail offering. Wouldn't think things have changed that much over the years..
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- 16,877
The average person never changes Med Sups.
I don't know what the average is but it's common to find people who have had the same plan 10 years if they are 75 or older.
I don't know what the average is but it's common to find people who have had the same plan 10 years if they are 75 or older.
Old folks resist change..
.. And, if you have built a relationship with them, they tend to be very loyal and it is hard for another agent to get in the door. When I concentrated on Med Supp, the ones you could get in to replace were the ones to whom a well satisfied client of yours gave you a personal referral, one that had a Mail Order policy or one who had an out of area agent they had not heard from since he wrote their policy. (There were no phone sales then).
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Old folks resist change..
You'd know all about that!
The handful of clients I have lost over the last 3 years in the Medigap business have mostly been due to death.
I don't focus on T65 but a lot of them seem to find me.
In issue age states I suspect there is less movement than attained age states.
I don't focus on T65 but a lot of them seem to find me.
In issue age states I suspect there is less movement than attained age states.
You'd know all about that!
Yeah.. It is 2:30 in the afternoon, the wife has gone shopping and I am resisting changing out of my pajamas into my clothes.
Kind of tired anyway. Have been working hard this morning doing mechanic work... had to put a rear end in my recliner.
- 29,467
Yeah.. It is 2:30 in the afternoon, the wife has gone shopping and I am resisting changing out of my pajamas into my clothes.
When did you go into Telesales?
