Getting Paid on Med Supp

[Glen Shelton]

12% interest on that loan was my inspiration.

Interest rates vary per carrier.

It depends where you are at in your career. An agent I was working with previously had not been taking advances on his Med Supp commissions for a couple years but this began to affect his lead flow.

He started taking advances again, buying more leads, and writing a lot more business.

I believe taking advances to reinvest in your business is a great idea.

 

[G.Gordon]

From Med Supps? What's the hurry to get off of advances?

Human behavior will limit one's motivation to keep selling/hunting/working if current needs are met. Take advances only when needed, have at least half of your companies paying as-earned.

In your mind those five sales are paying you $1000, but in reality you only earned $83 assuming a 12 month advance.

 

[Chazm]

Humana behavior will limit one's motivation to keep selling/hunting/working if current needs are met. Take advances only when needed, have at least half of your companies paying as-earned. In your mind those five sales are paying you $1000, but in reality you only earned $83 assuming a 12 month advance.

I've never worked with med Supps that charge interest. But I just signed a contract with Aetna for a non res state and the smallest advance was 6 months. Am I losing much commission there?

 

[G.Gordon]

Not sure, I didn't read their advance contract for obvious reasons.

 

[cadylou]

I'm a believer in "as earned"--tough it out till you build a nice salary for yourself. It's the best way.

 

[WCMason]

I've never worked with med Supps that charge interest. But I just signed a contract with Aetna for a non res state and the smallest advance was 6 months. Am I losing much commission there?

You're only losing commission on the interest they will charge you on those advances.

 

[Iwillpay]

I'm a believer in "as earned"--tough it out till you build a nice salary for yourself. It's the best way.

Thats true, but in certain circumstances you can start with advances, then gradually change to "as earned".

The early cash flow maybe needed to keep you afloat in the early stages.

Take advances from your "goto" or main carrier and "as earned" from the others.

 

[Chazm]

I'm not in my early stages and I don't need advances if they are going to charge me interest. What I'm saying is, that page that gave advance options said 6, 9 and 12 months. I should of just left blank to get as earned? I'll go back and change it now then

I'm not used to paying interest in FL

 

[Newby]

I'm not in my early stages and I don't need advances if they are going to charge me interest. What I'm saying is, that page that gave advance options said 6, 9 and 12 months. I should of just left blank to get as earned? I'll go back and change it now then I'm not used to paying interest in FL

You can just put a big X over that page and write no advances on it.

 

[GoPokes]

I've never worked with med Supps that charge interest. But I just signed a contract with Aetna for a non res state and the smallest advance was 6 months. Am I losing much commission there?

I took the 12 month advance with schwetna. Contract said they charge 1%. I believe that means I make 1% less than my total commission amount. So it cost me like $12 ($1 each month, on average), but renewals pay at the normal rate. Doesn't seem like that big of a deal.

But based on my calculations, either I got a higher contract than I was told, or they aren't charging me the 1%.