Selling Group Health

[Justin Bilyj]

That is good advice. However, there are several times in my life where I would have benefited from moving to the next level a little earlier.

I have a problem with taking unnecessary risks when trying to move to the next level. But, if you can test a new idea without losing the opportunity to go back to what you were doing, I say go for it.

Sometimes in business you can steal second base with one foot on first.

NOW THAT IS SOME ENCOURAGEMENT ALSTON!! its too bad not many people here share your sense of it (margarita). Dont get me wrong, i do liked to be reminded i am new, i guess it helps the old guys here feel like they have a sense of accomplishment.

 

[Todd King]

NOW THAT IS SOME ENCOURAGEMENT ALSTON!! its too bad not many people here share your sense of it (margarita). Dont get me wrong, i do liked to be reminded i am new, i guess it helps the old guys here feel like they have a sense of accomplishment.

Ok, I'll try to explain what I was trying to say just a little clearer. Are you making any money right now? From the position I see it from, no, you're not. Now, knowing that I could be fully wrong about this, I apologize if I am. I said it seems as though you're floundering, not knowing in which direction to head. All I'm trying to tell you is pick one, get good at it or find out that you don't want to do it. You're not going to sit back and read books and gain experience, which is what you need...to have some experiences. How are you going to know what you want to do or what you're good at if you don't do it? Reading a book on how to do something is not the same as doing it. Sure, read, but do too. I haven't heard you say one thing about what you're actually doing except that you're preparing to do something or thinking about doing something.
You keep making remarks about us "old timers". If you think you have it all figured out, then why do you ask questions? Believe it or not, I'm trying to make things easier for you, I want to see you make it. Otherwise I wouldn't waste my time on here with you.
Does that clarify my position a little better?

 

[Justin Bilyj]

Todd when I talk about old timers, I didnt mean to put you in that group, and I didnt take your post as an attack, you ARE right, i cant do it all, but i want to try it all so that I can find out what I like best. I do make money selling insurance, just not life or health insurance, surety bond insurance, but that money is sucked away with previous matters, leaving me with some time and a little bit of a bank for individual health. I love to read, and I am taking Rob's training which I think is outstanding. I do appreciate your input, and for you going to great lengths for the clarification. Its funny how when you post for something like group health training or knowledge you get all of these other opinions and shoulds, which is fine, as long as it pertains to the original inquiry.

 

[Dave020]

My point was that if you are going to try large group, which seems to be what you indicated in your original post, there is no book or reading material much that will help you. It is such a different animal from all other health insurance and most other types of insurance. No one has written the book on how to write 3,000 life group health insurance. The brokers who do that just do it, they don't usually share much information. If you want to get into that market, you need to get a job with one of them and learn how it works.

Also, you have to bear in mind that the larger the group, the lower the commission per head. Example:

Group 2-50 --7-10% commission to a break point level then reduce

Group 51-250--3% commission to break point level then reduce

Group 251-1,000 .05% commission to break point level then reduce

Group 1,001+--.0025% commission to break point level then reduce

So, the more lives you add, the more your commission percentage goes down. In addition, groups 3 and 4 will certainly require you to have a few back office employees on payroll to do the administration on those.

Now, break point then reduce simply means that group health contracts have a threshold of premium before the commission begins to reduce. Once the employer has paid the threshold premium, the amount you earn begins to be cut for the remainder of the plan year. You may start out at 7% on the group, but by month 6 it has been reduced to 3% because the premium threshold has been exceeded. Example:

First $30,000 premium -- 7% commission
$30,001-$50,000 premium - 3% commission
$50,001 - $75,000 premium -- 1% commission
$100,000+ premium -- $.05% commission

This is the way carriers operate (at least in CA) on group benefit plans.

 

[Justin Bilyj]

Dave that was very informative, and it wet the appetite. I will look for books, the ones that I feel that will help me indirectly are THE WEDGE, cause chances are most employers have a group plan with another agent. And the other book is SPIN SELLING, because you are right, its a different animal, there needs to be a more indepth and directed level of questioning taking place during the appointment that builds value with explicit need questioning, which uncovers needs that are directly benefited by the product you have. Is this theoretical, yes, very much so. I guess I have a knack for doing presentations and going after the big fish, its exciting. As far as finding a mentor, I will keep my look out, and see what OH has to offer me. I appreciate your input, if you have anything more to add, I would be grateful.