My Medicare Advantage Experience Thus Far...

[Todd King]

I didnt investigate the numbers on this graph, becuase I already spent my free time giving you the above example. But my only question is this:

If Medicare is so much more lucrative than Final Expense, by not just market that and cross sell FE?

Hell of an idea there!

 

[NSRH]

Because Medicare will not pay the bills in the first few years. The combo approach is deadly because you can make money today and build a long stream of residual income as you go using the exact same lead.

Are you saying that the commission is not there for an agent to make great money just writing Medicare Advantage/Supplement policies?

 

[springbokhouston]

In the example above your Medicare income is as follows:

Year 1 - $9,416 (because of proration)
Year 2 - $30,476 sales + renewals
Year 3 - $49.430 sales + renewals
Year 4 - $66,499 sales + renewals
Year 5 - $81,841 sales + renewals

Hardly an income that you want to buy leads with but when you already have the lead and access to the client??? Not a bad little addition.

 

[NSRH]

I know plenty of peeps doing Medicare and not one of them is at those 3 to 5 year projections and they write 125 MA's a year . . .

The reason is because the persistency on Medicare products is worse than FE business. Clients change year after year. An FE agent will soon because an MA agent for most of the year.

Cross selling like this is very difficult, it can be done, but very few can make it work since MA plans require a huge amount of our attendtion during OEP and AEP.

 

[springbokhouston]

Are you saying that the commission is not there for an agent to make great money just writing Medicare Advantage/Supplement policies?

Of course you can, but it's a completely different line and most will tell you it's a tough first few years. There are plenty of people that make plenty of money leading with Medicare. It just so happens I'm dealing with FE agents. There are many ways to skin a cat, this is the one that I prefer.

 

[NSRH]

In the example above your Medicare income is as follows:

Year 1 - $9,416 (because of proration)
Year 2 - $30,476 sales + renewals
Year 3 - $49.430 sales + renewals
Year 4 - $66,499 sales + renewals
Year 5 - $81,841 sales + renewals

Hardly an income that you want to buy leads with but when you already have the lead and access to the client??? Not a bad little addition.

The example above is based on 100 policies a year. A full time MA agent should do three to five times that amount.

 

[NSRH]

Of course you can, but it's a completely different line and most will tell you it's a tough first few years. There are plenty of people that make plenty of money leading with Medicare. It just so happens I'm dealing with FE agents. There are many ways to skin a cat, this is the one that I prefer.

So youre teaching agents to write less FE and supplement it with Medicare? Because thats whats going to happen.

To keep their FE sales the same, they'd have to put in more time.

If my opinion, if their going to put in more time, it would be better to put more time in FE.

Im just saying it cant be done, Im just saying that its not the best business model in my opinion.

 

[springbokhouston]

Then don't let your agents do it. I respect your opinion, again it's not for everyone.

 

[goillini52]

So youre teaching agents to write less FE and supplement it with Medicare? Because thats whats going to happen.

To keep their FE sales the same, they'd have to put in more time.

If my opinion, if their going to put in more time, it would be better to put more time in FE.

Im just saying it cant be done, Im just saying that its not the best business model in my opinion.

Then you shouldn't do it......in my opinion.

 

[NSRH]

Then you shouldn't do it......in my opinion.

Then don't let your agents do it. I respect your opinion, again it's not for everyone.

I wont, and I dont

But this is an open Forum, to have this type of discussion.

Just like how many would disagree with the telesales model