Commission

[maryjd123]

No James -- these are people that are called for me already from the company -- i already have a turning 65 list

but the question is -- would i rather have someone else make the first call to the senior -- yep -- telling them that i will be calling within 24 hours -- yep

closing ratio with these 100%

 

[policy doctor]

RE commissions: Are you getting 20% on a United World Contract?? For that reason alone It's worth calling MSIS.

I'm with them too (UW) and only get 16% as a GA........I was thinking of getting RNA because of the better commissions. But who ever heard of them, right?

I too have found older clients don't like co-pays but that is based on habits. The newer retirees are used to HMO's/PPO"S and MSA's so they are more inclined to grab an MA.

 

[James]

No James -- these are people that are called for me already from the company -- i already have a turning 65 list

but the question is -- would i rather have someone else make the first call to the senior -- yep -- telling them that i will be calling within 24 hours -- yep

closing ratio with these 100%

Those free leads are great but how free are they?

20% 12 months advanced -- 1st year
10% years 2 thru 7
5% years 7 thru 10

Or you can do this

16% years 1-6, and 8% years 7-10.

So lets take this as simple as we can, we'll call this a AA age policy that doesn't go up with age. Say a hundred dollar premium just to make things simple. Under your system you get 240 dollars in the first year, than thru year 2-7 you will get 120 dollars times six so that is 720 dollars and in the other 4 years you get sixty dollars times four or 240 dollars totalling $1200 per contract life. More than likely these people stick on the books esp if you take care of them and stay in touch.

Now under the direct contract such as Sman is presenting you will recieve this over the life of the contract. $1,152 in the first six years and than $384 totalling $1536 a difference of $336 dollars over ten years. Now depending upon how many you are signing up is the key here! So the leads are not as free as you think they are!

Now the bottom line to me is the contract that I or any would sign up to go with these agencies. While I can easily go directly to any carrier that offers direct apointments and download the contract I don't remember seeing the contract link with this agency. If you could it would be nice to view this contract and have a discussion on that level do. As Sman I think it was the questioned the contract difference between such an Agency Vs that you would sign say with World. I've been in sales long enough to know no one is going to give away commissions if they don't have to, and at any point in any relationship there is tipping points that most sales houses use to determine when or when not to cancel a contract. So basically the devil is in otherwise called the fine print. Such as termination causes that most don't ever look at.

Ps I didn't see what Sman noted to the difference in ten years is double to what World is offering in your specific State! It is more of 700 dollar difference you are paying for that free lead! Dang I should give away free leads! In fact I could make more than selling the insurance itself.

 

[sman]

RE commissions: Are you getting 20% on a United World Contract?? For that reason alone It's worth calling MSIS.

I'm with them too (UW) and only get 16% as a GA........I was thinking of getting RNA because of the better commissions. But who ever heard of them, right?

I too have found older clients don't like co-pays but that is based on habits. The newer retirees are used to HMO's/PPO"S and MSA's so they are more inclined to grab an MA.

Policy doctor,

Commissions for UW are different among states. If you are getting 16%, it's likely you're getting that for the first 6 years. With MSIS, you get 20% the first year and it drops to 10% the next 5 years. It's not a good deal if your client keeps the med supp for 2 years or more. And in my opinion, anyone who gets a med supp will keep it much longer than two years.

Also, MSIS requires you to assign commissions to them. It's apparent some don't have a problem with this. I do. Just make sure you go in with eyes wide open before jumping on board for a short term increase in commissions and a "free" lead.

 

[Guest]

Medicare Supplement Insurance Services Inc -- thats the company to go with

Who and where are these people. I Googled and got nothing:
http://www.google.com/search?num=50&hl=en&q="Medicare+Supplement+Insurance+Services"&btnG=Search

Al

 

[sman]

So lets take this as simple as we can, we'll call this a AA age policy that doesn't go up with age. Say a hundred dollar premium just to make things simple. Under your system you get 240 dollars in the first year, than thru year 2-7 you will get 120 dollars times six so that is 720 dollars and in the other 4 years you get sixty dollars times four or 240 dollars totalling $1200 per contract life. More than likely these people stick on the books esp if you take care of them and stay in touch.

Now under the direct contract such as Sman is presenting you will recieve this over the life of the contract. $1,152 in the first six years and than $384 totalling $1536 a difference of $336 dollars over ten years. Now depending upon how many you are signing up is the key here! So the leads are not as free as you think they are!

James, it's actually a little less with the MSIS contract. The commissions are for years 1-6, then 7-10. So in the above scenario for my state, you'd get 20% the first year and 10% years 2-6 and 5% years 7-10. So you'd get $240, then $120x5=$600, then $60x4=$240. Totalling $1,080.

I currently get 16% years 1-6, and 8% years 7-10. If you add it all up it's $1,536. That's $456 more. And yes, it's over a 10 year period which some don't believe a person will keep it that long. If they keep it two years, you've made a little more money. Lastly, I just don't believe you're going to have someone drop a med supp for a Med advantage plan unless they just can't afford the premium.

Ps I didn't see what Sman noted to the difference in ten years is double to what World is offering in your specific State! It is more of 700 dollar difference you are paying for that free lead! Dang I should give away free leads! In fact I could make more than selling the insurance itself.

Based on Wyoming, UW commissions would be greater than here in Georgia. So the spread was much greater. About $780.

 

[maryjd123]

please keep in mind that i have been throwing up since thursday of last week when i post this ---- and today i believe is tuesday..

when you guys are saying your people will keep their medsups -- at least here in wyoming that is not true

i can walk in the door of the home of a senior that has had their medsup for 1 year or 20 years and i will walk out that door with a sale of an advantra freedom product and a continental care --

conditions -- if they have medical issues -- i wont change it

if they dont -- they are switching -- thats a fact

its not the matter of affordability of a medsup

for instance

with the advantage plan -- they go to the doctor 3 times a year
price -- 45 dollars
has surgery on their foot because a horse stepped on it -- 3 days in the hospital --- ( we are in wyoming ya know) 265 x 3 = 795 copay

840 dollars out of pocket for the year

using the continental care plan they get a check for 1000 dollars
1000-840 is 160 net profit

normal medsup for a 70 year old could run anywhere from 1200 a year to 1800 a year here in wyoming --

once you show this to a senior -- they will be planning their next cruise with carnival and sending me a thank you card

its all about the numbers --- and once you sit down and look at this you will see my point

and even if they have medical issues and are at the doctor all the time -- say 8 times a year at the $30 for the specialty appointments
30 x 8 = 240 --
have open heart surgery 7 days in the hospital === 7 x 265 = 1855
1855 + 240= 2095 minus the 1000 from continental care is 1095 out of pocket
they are still less than what they would pay for a traditional older medsup

medadvantage is the new medicare and its here -- with the max out of pocket at 3000 (wyoming advantra freedom) -- you cannot beat it as long as you have the 25 dollar supplement for continental care

think about it before you start yelling

 

[maryjd123]

and again

so while you guys are worrying about what commissions you are going to make off of your customers in years 3 thru 10 -- i am changing them
so dont bother doing the math -- someone will show them the way of medadvantage

last year i wouldnt of said this -- but medicare has changed
you cant help it

ok im done

 

[sman]

when you guys are saying your people will keep their medsups -- at least here in wyoming that is not true

Just shows things are different here than in Wyoming.

i can walk in the door of the home of a senior that has had their medsup for 1 year or 20 years and i will walk out that door with a sale of an advantra freedom product and a continental care --

Come on down here to Georgia and try it. The 0$ premium looks good, but the hospital copay is an issue for EVERY senior I talk to. Secondly, more and more surgeries are done outpatient. A gall bladder surgery for example. My wife had her gall bladder out last year and the the total cost from beginning of symptoms to surgery was just over $16k. It consisted of 3 doctor visits, an emergency room visit and outpatient surgery. So under the AF plan, a person under that scenario would have paid $60 for dr visits, and $2,748.20 in outpatient surgery charges. This doesn't include any inpatient hospital stay. As a matter of fact, a person would have been better off if they were admitted to the hospital.

conditions -- if they have medical issues -- i wont change it

Glad to hear it.

if they dont -- they are switching -- thats a fact

Arrogance isn't very becoming.

its not the matter of affordability of a medsup

for instance

with the advantage plan -- they go to the doctor 3 times a year
price -- 45 dollars
has surgery on their foot because a horse stepped on it -- 3 days in the hospital --- ( we are in wyoming ya know) 265 x 3 = 795 copay

See scenario above

its all about the numbers --- and once you sit down and look at this you will see my point

Oh imagine that. Actually doing some comparisons. Why didn't I think of that?

medadvantage is the new medicare and its here -- with the max out of pocket at 3000 (wyoming advantra freedom) -- you cannot beat it as long as you have the 25 dollar supplement for continental care

Maybe not in Wyoming, but we're not in Wyoming anymore Toto. There are MUCH better plans in Georgia than the AF plan. I have no problems with Medicare Advantage plans. But that's not what this discussion was about. It was about whether or not someone should assign commissions and get a lower commission for a "free" lead?

think about it before you start yelling

Who's yelling?

 

[Guest]

i can walk in the door of the home of a senior that has had their medsup for 1 year or 20 years and i will walk out that door with a sale of an advantra freedom product and a continental care --

conditions -- if they have medical issues -- i wont change it

if they dont -- they are switching -- thats a fact

its not the matter of affordability of a medsup

for instance

with the advantage plan -- they go to the doctor 3 times a year
price -- 45 dollars
has surgery on their foot because a horse stepped on it -- 3 days in the hospital --- ( we are in wyoming ya know) 265 x 3 = 795 copay

840 dollars out of pocket for the year

using the continental care plan they get a check for 1000 dollars
1000-840 is 160 net profit

normal medsup for a 70 year old could run anywhere from 1200 a year to 1800 a year here in wyoming --

once you show this to a senior -- they will be planning their next cruise with carnival and sending me a thank you card

its all about the numbers --- and once you sit down and look at this you will see my point

and even if they have medical issues and are at the doctor all the time -- say 8 times a year at the $30 for the specialty appointments
30 x 8 = 240 --
have open heart surgery 7 days in the hospital === 7 x 265 = 1855
1855 + 240= 2095 minus the 1000 from continental care is 1095 out of pocket
they are still less than what they would pay for a traditional older medsup

medadvantage is the new medicare and its here -- with the max out of pocket at 3000 (wyoming advantra freedom) -- you cannot beat it as long as you have the 25 dollar supplement for continental care

think about it before you start yelling

The reason I am independent is because I realize that one product does not work for every single client. When it comes to Medicare clients there is a lot more to consider than cost.
The fact is that seniors are the most affluent age group in our country and money is not the foremost issue on their minds. They want good insurance first and value second--unless they are just broke.
I walked away from two sales today because they have a good med supp and even though they are paying $300 per month it is important to them to:

--not have to pay any medical bills
--not worry about calling the insurance company before going to the hospital
--not have to check with every doctor to make sure they will accept their insurance.

They want security and peace of mind first and they are happy to pay for it.
If you are selling everyone based on cost only--which by your statements above you are--your clients will not remain loyal because inevitably someone will come along that can "do the math" better than you can.
On the other hand these two sales I turned down today gave me a referral because they knew I was looking out for their best interest. I earned their trust.
The "fact" is that MA is not for everyone and neither is a Medigap.