Med Supp and Online Sales

[ABC]

Thanks for the info.

My target market for supp sales will be new 65 year olds.

Thus I am thinking they will be ok with phone conversations and doing a online app? I really don't know.
At this point I don't want to be doing house calls.

I would just sell one carrier and that would Anthem.

My initial research is showing that there is some competition online lime but not like I thought at least from state based.

My goal would be to write 100 supps a year. By no mean my primary focus but if I would be willing to put resources into them. SEO and possibley a new site or at least a landing page.

 

[Frank Stastny]

Thanks for the info.

My target market for supp sales will be new 65 year olds.

Thus I am thinking they will be ok with phone conversations and doing a online app? I really don't know.
At this point I don't want to be doing house calls.

I would just sell one carrier and that would Anthem.

My initial research is showing that there is some competition online lime but not like I thought at least from state based.

My goal would be to write 100 supps a year. By no mean my primary focus but if I would be willing to put resources into them. SEO and possibley a new site or at least a landing page.

You mentioned in your original post that you are planning on "going after the med sup biz on my current block of group health plans". That is going to be totally different than if you are planning on prospecting for Med Supps.

If you are planning to get the majority of those 100 apps by prospecting then IMHO you are going to work a lot harder going after the T65 market. T65 are shoppers and tire kickers.

I'm afraid you are going to end up in the "also ran" category most of the time by limiting yourself to only one carrier. Competition is pretty stiff in the Med Supp market and a premium difference of as little as $1 to $5 per month can make a huge difference in their final decision.

Most seniors know that it really doesn't make a difference what company they use, the plans are standardized and all pay claims just like "clock work". Therefore it comes down to just one thing, price.

It is always good to have a presence on the internet but do a search on Med Supps. It's going to require a substantial investment on your part to have a website that will generate the kind of leads you may be looking for.

Selling over the phone does not mean that one must us a company that has online apps. (All companies allow agents to write apps without a personal visit.) I've been selling Med Supps for a long time on both appointments and over the phone. (Most of what I'm selling now though is over the phone.)

Using an online app is more convenient for the agent but I still feel that if I can't visit with them personally then sending them the app for their signature is a more personal approach than doing the app online. Building a good, solid rapport with my new clients is extremely important to me mainly because Med Supp companies, in most states, pay first year commission for the first six years.

I have noticed a dramatic difference in seniors use of computers in the "city" verses the "country". I mainly sell in rural areas and I find that there are a lot fewer seniors who are comfortable using their computer who live in the "country", even those turning 65.

I would give a lot more thought to selling Med Supps and the best approach to take before you start spending a lot of money unless your goal is just to market to your current health clients.

I'll be glad to discuss it further with you if you want to give me a call.

 

[Crabcake Johnny]

For the senior market, it's not about how many online apps you can submit - it's more about how many you don't.

It's not about figuring out that you spent $400 to make $1,800 and netted $1,200 trying to sell senior products online and thinking "wow, this is working. I just need to change a few things with my online presentation."

It's more about not seeing your senior clients where that $400 you spent would have resulted in $2,500.

You can try to sell senior product online - and can. But you'll be leaving a lot of money on the table.

 

[glenbeck]

My experience with seniors and my opinion has remained unchanged, "People do business with people they Like" i think it applies more so to the senior population then any other.

If they like you, and will do business with you, they will do that business via email or snail mail or phone call.

How do they determine if they like you?

Usually they prefer to lay eyes on you.

 

[Frank Stastny]

My experience with seniors and my opinion has remained unchanged, "People do business with people they Like" i think it applies more so to the senior population then any other.

If they like you, and will do business with you, they will do that business via email or snail mail or phone call.

How do they determine if they like you?

Usually they prefer to lay eyes on you.

I think this is more true in the senior market. If I were just starting out trying to build a book of business I would definitely do all face to face. It is still my preferred way to sell Med Supps and I do it as often as I can.

Nutten says "lov'en" like sitting at the kitchen table. Agents may be able to sell a more over the phone but this business is all about renewals and persistency. I still have seniors as clients who I wrote Med Supps for during my first year as an agent. Yes, I'm still earning commission from them.

 

[sman]

Well I can honestly say I have sat down face to face with maybe 10%-15% of my entire senior book of business. I just wrote two today over the phone and it was the first time I had ever spoken to them. Of course, they were referrals, but I have never met the people who referred them.

As Frank says, I guess I give good phone.

My experience with seniors and my opinion has remained unchanged, "People do business with people they Like" i think it applies more so to the senior population then any other.

If they like you, and will do business with you, they will do that business via email or snail mail or phone call.

How do they determine if they like you?

Usually they prefer to lay eyes on you.

 

[ABC]

I appreciate everyone feedback on this topic.
All of you have posted a proven technique that works.
I agree 100% F2F is the best way to close and keep retention.

I am looking at this line from a new school standpoint.
Online apps, Online proposals, & phone sales. The new 65 has experience with these tools.

My big questions is can I convert website traffic into sales.
I can develope a site for under $1,500 with a great domain name. Then add a SEO budget I will get traffic. If I get 240 Unique IP's a month I should get 24 people wanting numbers or additional info. Of that 24 I should close at least 3-4 or maybe its alot higher around 10. This is the part I don't know.

Off of my current health block should have a steady 3 policies a month.

 

[Frank Stastny]

As Frank says, I guess I give good phone.

I stopped to get gas the other day and I read that on the restroom wall. It was in your handwriting though.

You are an experienced, seasoned agent. I was mainly referring to a new agent trying to build a book of business. It's a lot easier to give "good phone" when one knows what they are talking about and has experience working with seniors.

When I talk to new agents who want to become underwear agents I suggest that they perfect their dog and pony show with their clothes on first. I think it dramatically shortens the learning curve.

 

[sman]

Yeah, I don't know very many people who would be open to me showing up at their house in my underwear.

When I talk to new agents who want to become underwear agents I suggest that they perfect their dog and pony show with their clothes on first. I think it dramatically shortens the learning curve.

 

[sman]

I must be. According to Ritter's quote engine, a Plan N for a 65 year old female in Birmingham, Alabama (35201), Loyal is $86.84 for Plan N while Family Life is $71.00.

Plan G for Loyal is $107.64 while Gerber is $86.50.

Plan F for Loyal is $124.15 while Family Life is $101.50.

According to Ritter's site, the rates for Loyal were effective 06/23/2010. Granted, it's possible his rates are incorrect. Please let me know if these rates aren't accurate. I'm sure Ritter would want to know as well.

They are 78.57 plan N ns in AL. Moo is 75.59. I think this is very competitive. We just did one today there is how I know this one. They are comp. in many markets now. Other can decide for them self. You have to be looking at the old rates sman.


Jim Sowder
Family 1st Insurance Brokerage
304-640-8914
fax: 206-337-3753
[email protected]