Selling Individual Insurance vs. Small Business Insurance

[sman]

Thanks for the input.

HaHa, next time I will have to use spellcheck. Sounds like a West Virginia joke waiting to explode.

Yeah I wasn't sure if I should use Alabama or West Virginia. Couldn't resist.

 

[STIBROKER]

Cons:
1) Could possibly cause the group not to qualify as a group based on participation rate requirements.

no....10 out of 10 times I leave the emp. on the plan because his prem is either 50% to 100% paid for.

2) Depending on the individual plan, he/she may not have the same type of benefits as the group plan.
I see no reason not to write both.

But if you are saving a family $200 to $400 a month in prem's will out way
group benefits.....unless they are planing on having a baby.....I had I client this month that were all on her husbands cobra plan for $950 a month and was wanting a maternity plan ....told her to call the company and ask how much would it cost just to keep her on the cobra plan... she says we can do that ....I say hell yes.....wrote the husband and child on an individual and she stayed on the cobra plan for $320 a month......its all about looking out for your clients best interest...find out their goals and make it cost effective.......

I am curious, do you do your own telemarketing to obtain laids or farm it out?

Dang sti, just exactly what type of agent are you? Scary. Laid and farm in the same sentence. You're not from Alabama are you?

:P

at least I know who I am talking to......


Ok....heres another......had a family that wanted maternity and their best deal was to write a 2 man group.....DONE....then wrote $1,000,000 rop's on them and 5 kid wl @$60,000 face ........so yes if you do not know the group health market you are leaving money on da table........

 

[sman]

no....10 out of 10 times I leave the emp. on the plan because his prem is either 50% to 100% paid for.

Really? Let's look at a recent scenario I came across. Small group PPO that is max rated. Individual coverage with a $1k deductible is $807.38. Employer pays half the cost. Same person can get nearly identical coverage on an individual plan for $211 per month. On the group he pays just over $400 per month out of his pocket. On the individual plan, even if he has to pay the full cost, he pays half as much for the same coverage. Do you leave him on the group plan?

But if you are saving a family $200 to $400 a month in prem's will out way
group benefits.....unless they are planing on having a baby.....I had I client this month that were all on her husbands cobra plan for $950 a month and was wanting a maternity plan ....told her to call the company and ask how much would it cost just to keep her on the cobra plan... she says we can do that ....I say hell yes.....wrote the husband and child on an individual and she stayed on the cobra plan for $320 a month......its all about looking out for your clients best interest...find out their goals and make it cost effective.......

Couldn't agree more.

at least I know who I am talking to......

Are you sure?

 

[STIBROKER]

Really? Let's look at a recent scenario I came across. Small group PPO that is max rated. Individual coverage with a $1k deductible is $807.38. Employer pays half the cost. Same person can get nearly identical coverage on an individual plan for $211 per month. On the group he pays just over $400 per month out of his pocket. On the individual plan, even if he has to pay the full cost, he pays half as much for the same coverage. Do you leave him on the group plan?

first off have not found an individual paying $400 a month on a group sponsored plan and yes if he was healthy I would advise pulling him off the group......

 

[Crabcake Johnny]

I just did a small case a few days ago - single girl on a group plan and $50 a week was coming out of her check X 4 weeks = $200 per month. Theh plan was a HMO and she hated it. I put her on a PPO plan for $130 a month.

Even when an employer pays 50% I can normally beat it. And you won't find any employer paying for the family premium. Most employees have to pay full rate to add their spouse and kids.

 

[sman]

Really? Let's look at a recent scenario I came across. Small group PPO that is max rated. Individual coverage with a $1k deductible is $807.38. Employer pays half the cost. Same person can get nearly identical coverage on an individual plan for $211 per month. On the group he pays just over $400 per month out of his pocket. On the individual plan, even if he has to pay the full cost, he pays half as much for the same coverage. Do you leave him on the group plan?

first off have not found an individual paying $400 a month on a group sponsored plan and yes if he was healthy I would advise pulling him off the group......

I would too. I was just countering your argument that "10 out of 10 times you leave the employee on the group".

 

[Sam]

I sell both and let me tell you that when you start out, it is much easier to market only to individuals. You get the commission much quicker, and you have the option of advances.
Group health is an excellent product to sell, but it takes a long time until you have enough business on the books to pay your bills. Since you are just starting now, I highly recommend that you focus your marketing efforts on individuals. However, with very little effort, you can find out how to run group quotes and that way you don't have to leave business behind.

However, if you can support yourself for one year before needing a paycheck, group is an excellent way to go.