My Medicare Advantage Experience Thus Far...

[Todd King]

Yeah, but we are talking about 60 month persistency, not 13.

Oh, you want to go there. If an agent worth their salt is doing it, they won't lose the client just because there's a better plan for them. With FE, if you lose a client it is either because they lapsed or they went with another agent/company. Either way, you're probably not getting them back. But I get it....you got that up front money! Too bad you're not building any renewals to be proud of though.

For the average FE sale compared to a Med Supp sale, it takes you about 2 1/2 years to reach the break even point. In other words, you've made about the same income on each product. After that, you're making more on that med supp than you EVER will on the FE policy.

 

[rousemark]

Oh, you want to go there. If an agent worth their salt is doing it, they won't lose the client just because there's a better plan for them. With FE, if you lose a client it is either because they lapsed or they went with another agent/company. Either way, you're probably not getting them back. But I get it....you got that up front money! Too bad you're not building any renewals to be proud of though.

For the average FE sale compared to a Med Supp sale, it takes you about 2 1/2 years to reach the break even point. In other words, you've made about the same income on each product. After that, you're making more on that med supp than you EVER will on the FE policy.

Have no data other than personal experience to back this up but I have a lot more FE clients make it past 6 years than Med Supp because of the age difference. I sell FE to 50-60 year old as well as 65-75. Not so with med Supp.

 

[rousemark]

BTW, I am not saying an agent should forgo selling either. If you are in the house with one product, you might as well write the other.

 

[Todd King]

Have no data other than personal experience to back this up but I have a lot more FE clients make it past 6 years than Med Supp because of the age difference. I sell FE to 50-60 year old as well as 65-75. Not so with med Supp.

I don't care if you have an FE client for 20 years, having a Med Supp client for 6 years will pay you more than the FE.

 

[springbokhouston]

It's as simple as that. Run the persistency at 75 percent and you'll still make a lot more than FE alone. If you're a good agent with the right carriers it'll be hard to replace. Besides it's hard to bounce a check on a zero premium plan.

 

[rousemark]

It's as simple as that. Run the persistency at 75 percent and you'll still make a lot more than FE alone. If you're a good agent with the right carriers it'll be hard to replace. Besides it's hard to bounce a check on a zero premium plan.

Now, you are not talking about Medicare Supplement.

 

[SPUR CITY]

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.

I’d have to disagree with this. Maybe I can have our Medicare trainer Russ come on here and share his story but he made a living from the start with ONLY Medicare business. Russ contacted me after he heard the podcast I did with Glen from Lead Heroes and decided to start learning to cross-sell final expense to his clientele. That’s when we teamed up and I showed Russ how to do it effectively. Then that’s when we finally got to really know eachother and I learned about how good he was in the Medicare world. So we figured out ways to work together on it teaching our agents.

As long as your systems are effective and efficient and lead prices are where they need to be you can EASILY make a living on Medicare only.

The Heroes Huddle Podcast with Glen Shelton by Glen Shelton on Apple Podcasts

 

[VolAgent]

 

[goillini52]

All the emphasis has been on renewals.. The only thing that makes medicare more lucrative is the premium size per case. If the premium amounts are equal, there is no doubt FE is better. On the average a $1000 annual premium will pay $1200 over a 6 year period. That same $1000 will pay $1200 year one on the FE @ 120%. Same amount of money but you don't have to wait 6 years to get it. Doesn't matter if the policy lapses after a year. Put the extra money in the bank, draw a little interest and pay it out to yourself over the 6 year period. Plus, you are ahead by whatever renewals the life plan pays.

That's low. I'd say mine is more like $1,500- $1,800. As far as the "typical" FE client, I can't imagine that the persistencty will match that of a Med Supp client. Also, unless their health won't allow it, the Med Supp client moves to another company about every 3-4 years(sometimes more often), giving you a fresh 6 years of 21% commissions.

I see a lot of talk about lapses and NSF's on FE. That's almost unheard of with Med Supps. I think there's also a lot more opportunity to cross sell other products with Med Supps...FE, Dental, Cancer, etc. I think Med Supps and FE pair up nicely(I didn't say FE and Med Sups). Less cat piss and fewer bugs going Med Supp 1st.

 

[rousemark]

I see a lot of talk about lapses and NSF's on FE. That's almost unheard of with Med Supps. I think there's also a lot more opportunity to cross sell other products with Med Supps...FE, Dental, Cancer, etc. I think Med Supps and FE pair up nicely(I didn't say FE and Med Sups). Less cat piss and fewer bugs going Med Supp 1st.

That is because they are developing their business out of the "typical" FE market. If you are writing FE in the "typical" Med Supp market, you won't see those problems very much.