How to choose a medicare supplement company

[senior-advisor-indiana]

All these companies come out with low rates some come out with mediocre rates. It seems that they all take big increases after so monay years, some 2 years some 5 years. How do you veterans choose or know which company to use. By the way I haven't heard anyone talk about United Commercial Travelers. Are they not competitive anymore?

 

[Frank Stastny]

Some agents pick the cheapest on available at the time. Then, as you say, they have huge increases.

In the last several years I have seen probably six companies do what you said. The agents who sell for those companies are constantly chasing their clients to move them into a new company. That is so time consuming and takes valuable time away from selling. And, it is not NEW MONEY.

I look at the companies apps. I mentioned that in another thread.

If the company is new in the state I find out what they have done in the way of increases in other states. I don't even hardly license with companies like that any more.

There are a lot of other things you can do so when an increase comes along that you don't have to worry about losing your clients.

When I was captive with UA they had three consecutive years of 35% premium increases. I lost about half or less as many clients as the other agents working out of the office did. That is an accurate estimate.

The reason is that, unlike the other agents, I stayed in touch with my clients and let them know of the increase before UA did. I still do that today when I know an increase is coming and I very seldom get any flack from my clients.

There is a lot to be said for developing an extremely good rapport with you clients. The more you keep in touch with them the less you have to worry about them cancelling.

 

[wilkin]

What hurt a lot of companies was the Medicare+Choice fall out back in 2000. That was what Medicare Advantage plans used to be called. Back then most plans pulled out of the market and dropped tens of thousands (probably hundreds nation wide) of individuals, many of whom had chronic and costly health conditions. These folks were granted a special open enrollment into any Med Supp carrier's A,B or C plans offered in their state. Company loss ratios went thru the roof and rates went up. New company offerings after that were at much lower rates. But even that experience not withstanding, most Med Supps go up 10 to 15% or more yearly and there is always a lower rate available. Med Supps are a commodity and some clients are easily swayed by a lower rate. Like Frank said it is important to stay in contact with your clients and keep them informed.

 

[senior-advisor-indiana]

You think United World is a good pick? Who ahs the toughest app.?

 

[Guest]

You think United World is a good pick? Who ahs the toughest app.?

It's all cyclical and geographical. You can not say one company is best overall solely based on their rates in one year or even five. Look at service (you) and ratings also.
United World has the hardest app in my opinion...they ask for meds which most others do not. But the app for MD is different for other states.

 

[johnrocks]

You know what, we can debate the best companies until the cows come home but in my 45 years on this earth I have seen successful people and losers with every insurance company out there , bar none if that was not the case these companies with the hugh rate increases,the hard/easy apps,the bad service the whatever, would have tanked many moons ago. I am sure there are guys in this country right as we speak that is crying about every company we praise and someone is making a small fortune off of the companies that we condem(brain fart forgot how to spell) a lot of it is ATTITUDE. If you believe in your company and your product then a percentage of your prospects will see that and buy from you. I don't concern myself with the occassional rate increase,it's part of it,get over it and move on, I see my clients as often as I can, sometimes I'll just drop by for a cup of coffee,if they have any concerns then we discuss it if not we chat and move on. When a customer changes companies I don't care as long as it's with me and Frank is right, it's not new money but you still gotta protect that old stuff lol

 

[Frank Stastny]

Kyle, John,

You are both right as rain. It really doesn't matter. I sold for UA after some huge increases and still made a lot of money. I was in the top 21 agents in the company when I left. Sorry, not bragging just stating a fact.

My clients don't buy insurance and I don't sell insurance! I sell me. And I keep selling me several times a year to them. Birthday letters, news letters, anniversary letters, I have several sweet old ladies I always call on Valentines day because I know they don't have anyone.

When Jacqueline and I got married in 2000 I had a pic of the two of us standing in the surf at Daytona at the top of my newsletter. I had a client call me, I hadn't seen her since 1996 when I sold her and her husband supps and LTC, and tell me that she cut our pic out of the newsletter, took it to a frame shop and had it matted and framed. It is still sitting on her mantel.

I have tons of stories like that. Do you think an increase is going to cause her to go with "Midnight Sales Insurance Company"? Never happen. They still have insurance with me.

I have another couple that I haven't seen since 1995 and when they call, they call me "son" and tell me that they love me when they hang up.

You have to stay in touch with them on a regular basis to build that kind of loyalty and friendship.

 

[CHUMPS FROM OXFORD]

"she cut our pic out of the newsletter, took it to a frame shop and had it matted and framed. It is still sitting on her mantel"

"and when they call, they call me "son" and tell me that they love me when they hang up."

Geez...my own Mother doesn't even do that!!!

 

[Frank Stastny]

All of you guys have an open invitation to call me anytime. I would really enjoy meeting all of you over the phone. That goes for anyone else on the board. I really think phone conversations are so much more helpful than typing.

I love to talk about insurance, in case you haven't noticed , and welcome your calls. And I won't pretend it is a murder scene.

I promise not to try to "high pressure" you into buying YIO. It's pretty hard to B.S. a B.S'er. Well, maybe a little.

Oh, "guys" is a generic term. Phew, almost didn't catch that. I don't want the lovely ladies coming after me, at least not if they are mad.

 

[johnrocks]

I can vouch I called Frank and within 30 seconds it was like taking to an old friend. Isn't that right....son