Med Supp Application Fee

[senior-advisor-indiana]

Which carriers?

The ones I use state it is non-refundable.



The last *** I recall barking about the app fee was an MOO policyholder. Similar to you. Saving about $400/yr. Refused to pay the fee. Wished him luck with his MOO plan and moved on

I have never had a company charge an app fee when it's declined.

 

[Newby]

Which carriers? The ones I use state it is non-refundable. The last *** I recall barking about the app fee was an MOO policyholder. Similar to you. Saving about $400/yr. Refused to pay the fee. Wished him luck with his MOO plan and moved on

Application fees only are charged if the policy is issued.

There may be companies that won't refund it if the applicant 30 day free looks the policy after approval. But nobody charges it if the application is not approved.

 

[liorselamb]

Which carriers? The ones I use state it is non-refundable. The last *** I recall barking about the app fee was an MOO policyholder. Similar to you. Saving about $400/yr. Refused to pay the fee. Wished him luck with his MOO plan and moved on

All of them. App fee is only if issued, placed and kept more than 30 days

 

[saintstigers]

I let him know that the $20 app fee is refundable if a) he is declined and b) if he decides not to take the policy. He said he's 99% that he he will finish the app, however, he wants to check to see if there are any other Plan G's that don't have an app fee. I said feel free to search as there are none at the price I was offering him.

 

[GreenSky]

Tell his the $20 is your commission. You need that to buy ramen.

Rick

 

[sshafran]

I let him know that the $20 app fee is refundable if a) he is declined and b) if he decides not to take the policy. He said he's 99% that he he will finish the app, however, he wants to check to see if there are any other Plan G's that don't have an app fee. I said feel free to search as there are none at the price I was offering him.

I'd recommend a different approach, considering he said he wanted to check and you said "feel free to search there are none at the price I'm offering."

Wrong response.

Rather than blow it off, act like he piqued your curiosity as well. While on the phone with him, say something like, "Let's check and see if we can find a better option without a policy fee..."

Pull up your quote engine... start talking out loud like you are looking for new options....

Work through it with him.... saying out loud, Plan G - Zip Code _____, let's take a look.

"Ok, I see "carrier" for the price we discussed, but of course they have the fee. Let's see if there is a better deal. For $3 more we get "carrier b," but they also have the fee. For $7 more we get "carrier c" but they have a fee too.

Look - we can do carrier D - they don't have a fee - but they are $15 more per month.

What would you like to do? We can do carrier A and pay the fee - or carrier D - they are only $15 more per month.

The worst thing that could happen is you can smoke out the real objection if the policy fee is smokescreen.

In short, don't shut him down or "let him shop." Close the deal by proving that you have his back... and bore him with the details on purpose... reading off each and every company until you find the one $15-25 higher without a policy fee...

If he is dumb enough, and buys the one higher priced, you likely earn a higher commission because of his stubborn refusal to pay the fee.

 

[WCMason]

I have never heard of a supplement carrier keeping an application fee on a declined application. Would someone please name these carriers so they may be avoided?

 

[Todd King]

I have never heard of a supplement carrier keeping an application fee on a declined application. Would someone please name these carriers so they may be avoided?

Not that I know every company out there, but in all my years I've never known one that would keep the app fee if they are declined or if it was a non-taken. I'm pretty sure no company exists that would keep the app fee in either of those situations.

 

[somarco]

Declined apps, fee IS refunded. My understanding is on not taken carrier keeps the fee. Perhaps I have misinterpreted.

Liorselamb stated in #5 above

If not taken then it'll be refunded.

My comment was regarding a not taken app.

Please correct if carriers refund the fee on not taken apps

 

[liorselamb]

Declined apps, fee IS refunded. My understanding is on not taken carrier keeps the fee. Perhaps I have misinterpreted. Liorselamb stated in #5 above My comment was regarding a not taken app. Please correct if carriers refund the fee on not taken apps

The ONLY time a carrier charge an app fee is if approved and in force for 30 days or longer