Medicare Supplement Questions

[YouGotMyMoney]

I've been looking at adding Med Supps to my bag of tricks.

As I understand it, the insured has to pay for Part B plus the med supp premium?


I looked at plan J in my county and is starts out at $180 a month

As to compensation, it seems that commissions run from 15-22%.

That's a FYC of $324 at the low end. And as understand it, it's level commissions for 6 years? If I kept them on the books, even with changing carriers to get a better rate, the total comp would be around $2000?

If that's correct, it seems unbelievable. If I sold 100 med supps the first year, that's about $65,000 in fyc. And if I kept those same 100 clients on the books Year 2, and added another 100 med supp clients in Year 2, that would a total $130,000 in compensation for Year 2. Is my understanding of this concept correct?

 

[VaDwayne]

I've been looking at adding Med Supps to my bag of tricks.

As I understand it, the insured has to pay for Part B plus the med supp premium?


I looked at plan J in my county and is starts out at $180 a month

As to compensation, it seems that commissions run from 15-22%.

That's a FYC of $324 at the low end. And as understand it, it's level commissions for 6 years? If I kept them on the books, even with changing carriers to get a better rate, the total comp would be around $2000?

If that's correct, it seems unbelievable. If I sold 100 med supps the first year, that's about $65,000 in fyc. And if I kept those same 100 clients on the books Year 2, and added another 100 med supp clients in Year 2, that would a total $130,000 in compensation for Year 2. Is my understanding of this concept correct?

In my opinion, you are doing a disservice to your clients by selling plan J. They will be paying for benefits they will never need, that is why plan J is going away in June of 2010. Sell the plan F unless the premiums are so close that it doesn't matter.

You will not make $65000 on 100 med. supps. I have found that the average commission is about $300 per med. supp, some lower and some higher. Depending on the company, the renewals for the next 5 years are equal to the FYC, so yes it is possible to double your pay in year two, and triple it in year 3;That is if 100% stays on the books which is unlikely.

 

[Guest]

Conceptually you are correct, however there is a drop off in retention over time and variables as to average premium, etc. $180 per month sounds high though I may not be familiar with your state rates yet. Regardless it is extremely lucrative and 100 per year (2 sales a week) is easy my Brother.

 

[YouGotMyMoney]

In my opinion, you are doing a disservice to your clients by selling plan J. They will be paying for benefits they will never need, that is why plan J is going away in June of 2010. Sell the plan F unless the premiums are so close that it doesn't matter.

You will not make $65000 on 100 med. supps. I have found that the average commission is about $300 per med. supp, some lower and some higher. Depending on the company, the renewals for the next 5 years are equal to the FYC, so yes it is possible to double your pay in year two, and triple it in year 3;That is if 100% stays on the books which is unlikely.

Thanks for the advice and for correcting my math, lol.

Still seems incredible, though. $30k first yr, $60k 2nd year, $90k 3rd year, from just 2 med supp sales a week. Makes me light headed to think about.

With Med Supps, why do people lapse? If you offer the most competitive carrier, is it just do to people croaking or something?

 

[VaDwayne]

Conceptually you are correct, however there is a drop off in retention over time and variables as to average premium, etc. $180 per month sounds high though I may not be familiar with your state rates yet. Regardless it is extremely lucrative and 100 per year (2 sales a week) is easy my Brother.

Rob, you are 100% correct. You would almost have to try not to get 100 a year
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Thanks for the advice and for correcting my math, lol.

Still seems incredible, though. $30k first yr, $60k 2nd year, $90k 3rd year, from just 2 med supp sales a week. Makes me light headed to think about.

With Med Supps, why do people lapse? If you offer the most competitive carrier, is it just do to people croaking or something?

I hope everything does work out this way. I am betting the bank on it. I am now only doing med. supps and some commercial insurance.

I am saying this you give you hope and hopefully light the fire under you.I hope it is taken that way. This week is sold 7 med. supps and 2 MA's( MA's by accident ). Here's the cool thing, 5 of those 7 were referrals from folks that I have sold med. supps this year, and every med. supp that I have sold this year, except 1, have been the result of cold calling on the phone. I get at least 1 referral and and a sold policy from every med. supp. that I write as a cold call.I have only been in the business since February and selling Med. supps. since the end of May.

You can do it too.

 

[YouGotMyMoney]

VaDawyne/RobLiano,


Do you mind sharing what you use to run Med Supp quotes?

I used Ritter, 333** zip code, M 65 NS, Ultimate rate class and it came back with 3 options:

Plan F:

Sterling Investors: $296

Royal Neighbors: $347

Marquette: $376


However on the Medicare website, it says 25 companies in my county offer Plan F with the premium ranging $169 - $581.

Am I missing something?

 

[Frank Stastny]

VaDawyne/RobLiano,

Do you mind sharing what you use to run Med Supp quotes?

I used Ritter, 333** zip code, M 65 NS, Ultimate rate class and it came back with 3 options:

Plan F:

Sterling Investors: $296

Royal Neighbors: $347

Marquette: $376


However on the Medicare website, it says 25 companies in my county offer Plan F with the premium ranging $169 - $581.

Am I missing something?

First, one does not need a quote engine to sell Med Supps. Personally, it almost seems like a waste of time. In the time it takes to enter a quote for one company I can look at the cost of three or four simply by looking at the rate sheet. Just my thoughts.

One cannot go to Medicare's website and get accurate premium amounts for a state or a zip code within a state. (Refer to comment above.)

The main reason people lapse who have Med Supps is that their agent makes no attempt to stay in touch with their new clients. Seniors can be very flighty. Some will cave in to the next agent who tells a good story. The operative word there is "story".

I still have as clients people who I wrote my first year selling insurance in 1993. Selling insurance is about providing service, selling Med Supps is almost only about providing service. Or should I say, retaining Med Supp clients is all about providing service.

When most agents look at the commission from an app they see around $300 a year. I see much much more than that. Sold properly Med Supp renewals just keep building and building.

Med Supps are the easiest kind of insurance to prospect for and sell. Hands down. It is also extremely easy to retain Med Supp clients.

If I had to list the top three reasons why I am successful selling Med Supps they would be, not necessarily in this order. Lazy agents, agents who only attempt to "sell" Med Supps, and agents who really don't know Medicare or Medicare Supplement Insurance.

I were asked to add two more it would be premium increases and agents selling Med Supps in Missouri who only sell Plan F. I really love those guys. I hope they "keep up the good work".

 

[VaDwayne]

VaDawyne/RobLiano,


Do you mind sharing what you use to run Med Supp quotes?

I used Ritter, 333** zip code, M 65 NS, Ultimate rate class and it came back with 3 options:

Plan F:

Sterling Investors: $296

Royal Neighbors: $347

Marquette: $376


However on the Medicare website, it says 25 companies in my county offer Plan F with the premium ranging $169 - $581.

Am I missing something?

I don't use a quote engine. I only use the information that is sent to me with the application pakets from th various companies I represent.
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First, one does not need a quote engine to sell Med Supps. Personally, it almost seems like a waste of time. In the time it takes to enter a quote for one company I can look at the cost of three or four simply by looking at the rate sheet. Just my thoughts.

One cannot go to Medicare's website and get accurate premium amounts for a state or a zip code within a state. (Refer to comment above.)

The main reason people lapse who have Med Supps is that their agent makes no attempt to stay in touch with their new clients. Seniors can be very flighty. Some will cave in to the next agent who tells a good story. The operative word there is "story".

I still have as clients people who I wrote my first year selling insurance in 1993. Selling insurance is about providing service, selling Med Supps is almost only about providing service. Or should I say, retaining Med Supp clients is all about providing service.

When most agents look at the commission from an app they see around $300 a year. I see much much more than that. Sold properly Med Supp renewals just keep building and building.

Med Supps are the easiest kind of insurance to prospect for and sell. Hands down. It is also extremely easy to retain Med Supp clients.

If I had to list the top three reasons why I am successful selling Med Supps they would be, not necessarily in this order. Lazy agents, agents who only attempt to "sell" Med Supps, and agents who really don't know Medicare or Medicare Supplement Insurance.

I were asked to add two more it would be premium increases and agents selling Med Supps in Missouri who only sell Plan F. I really love those guys. I hope they "keep up the good work".

Frank, you are exactly right. People ask me why I would drive 4 hours round trip to make $300.00. I tell them I don't; I drive 4 hours round trip for $1800.00. Getting into this mindset makes everything you are doing today seem worthwhile.

I am now getting to the point where I will begin to see the 25% of my commission, that wasn't advanced, paid to me and I will start seeing renewals in March. I am really looking forward to that.
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VaDawyne/RobLiano,


Do you mind sharing what you use to run Med Supp quotes?

I used Ritter, 333** zip code, M 65 NS, Ultimate rate class and it came back with 3 options:

Plan F:

Sterling Investors: $296

Royal Neighbors: $347

Marquette: $376


However on the Medicare website, it says 25 companies in my county offer Plan F with the premium ranging $169 - $581.

Am I missing something?

You must be looking at QUARTERLY premiums.

 

[Russ]

Selling 2 med-supps a week would be a good figure to shoot for. Actually you should write more then that. As far as it..."being easy"...if it were that easy there would be more folks doing it.

As far as providing service on a med-supp, very little is required. All med-supps have automatic claim filing. Yes, you should keep in touch with existing med-supp clients and let them know any time they need you, to let you know.

Main reasons someone would drop a med-supp....death, getting on medicaid, replaced(shouldn't happen that often if you keep in touch with your clients)...rate increases.
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You must be looking at QUARTERLY premiums.

I think that zip is in some part of south Florida and those are monthly rates.

 

[YouGotMyMoney]

Russ is right.

In Ritter those rates fall under bank draft, which I assume means monthly bank draft.

I can't imagine seniors spending that kind of money on a med supp, when some MA plans are $100 a month or less.