My Medicare Advantage Experience Thus Far...

[goillini52]

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 want' see those problems very much.

Agreed, that was one of the points I was trying to make.

 

[hockeyday]

After three years, the persistency stays pretty steady. And 20% drop off year after year is some of the worse in the industry.

But for fun lets say you place 150k in a year (I dont know how a full time agent doesnt do this), at a 70% two year persistency with a modest 8% renewal, you made an additional $8,400 on top of first year income. Year three persistency comes in at 50% so now youve made $6,000 plus an additional $8,400, so now, at the beginning of year three your making roughly $15,000 a year in just renewals.

If an agent places 150k in a year, with an average cost of $200 per sale for marketing, at a 110% commission and a 700 average AV, this agent would have made roughly 100k in a year (excluding gas and wear and tear on car).

The numbers make sense, the bigger issue is if agents can put up the numbers. And if a full time agent cant hit these numbers, Medicare Advantages arent going to fix their issues.

Were do you get an 8% renewal in fe

 

[hockeyday]

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?

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 . . .

Me too they are making a ton more

 

[hockeyday]

Not true either. There are many people on Medicare due to disability that are way younger than 65. Look at the graph above and you will notice that less than 4% die across all years.[/QUOTE
That's a whole market in its self

 

[rousemark]

Were do you get an 8% renewal in fe

Settlers, Columbian, UHL..

 

[hockeyday]

Settlers, Columbian, UHL..

Lol, I said fe company,

 

[NSRH]

Lol, I said fe company,

If you are looking for price buster companies, they will also bust your commissions percentage too, especially on the renewals.

 

[hockeyday]

If you are looking for price buster companies, they will also bust your commissions percentage too, especially on the renewals.

No clue what that means

 

[SPUR CITY]

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.

Correct!

Average persistency in FE is about 80%.
Average persistency in MS is about 90%.

If they can qualify for Medicare supplement they can surely qualify for Final Expense.

We talk to a lot of agencies that also have a system selling Medicare supplements by phone. Problem with selling by phone is the cross-selling opportunities are less than they are with face-to-face.

I also agree that the average size sale with Medicare supplements is over $1,500.

I just took a snapshot of our Medicare supplement agent chatroom where one of our agents is applying Russ’ system and as you can see he sold 4 CIGNA applications today for $7,600. That’s an average of $1900 each on $5- $10 leads

 

[Rirwin]

No clue what that means

Means if your are selling he lowest priced company you won’t see an 8% renewal. If you sell other companies that aren’t as competitively priced the comp is higher (bc they charge the customer more)