Small Group (3 Ee and Under)

[YouGotMyMoney]

No, I am not asking how to go broke marketing to under 3 ee's on small group. As it stands here in FL, if you enrolled a group of 3, you would be paid around $3 pp pm, not enough, total waste of time.

My question: what do you say to people who want groups of 2 or 3 that offer no comp or it's so small, your time would be better utilized playing xbox?

I don't have a problem saying and have done so in the past, "Mr. Prospect, you need a minimum of four people on the group plan for me to work on this with you" and when they ask why I have no problem telling them, I won't be compensated.

For those of you that do 2 or 3 person groups, are you able to sell them life/di to make up for the meager medical commissions?
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bump.

no one has any thoughts, or is this area dead?

 

[stuy119]

Depends on whether you can cross-sell them on other products or not. If so, take the group "as is." If not, pursue other options, for example, come up with a 1-page "quote request" to see if the members can qualify for IFP and offer to write the business that way AND try to cross-sell.

 

[ABC]

I would look into some other group carriers.

Why not write UHC small group. You should make $14-$17 a month per employee.

But to answer your question you could touch on a few reasons why not.
Compliance the group is to small for you to keep them informed on compliance.
High rate increases for small group. You prefer not to handle those size group because of the lack of competition to lower the premium.
Talk about underwriting. By pooling 3 lives together that one claim over $10,000 hurts the entire group.

Or you could just buck up and write the business and the next thing you know the recession is over and all those 3 life groups are know 10!

 

[LGilmore]

Is there other business to be had? If it leads to a retirement plan or life sale is it worth it?

Out here in WA the January commissions for micro groups is going to 0%, I know your pain. That said, group isn't hard and if it nets other business, no worries.

 

[YouGotMyMoney]

Is there other business to be had? If it leads to a retirement plan or life sale is it worth it?

Out here in WA the January commissions for micro groups is going to 0%, I know your pain. That said, group isn't hard and if it nets other business, no worries.

My experience with small group has been the leads Cigna sends me (thanks for nothing) and internet leads asking about groups of one and two's.

Ok in august we have open enrollment, for groups of one....but they are almost always taking about how they can barely afford the group health premium.

What I am going to be doing is telemarketing for individual health and small groups. I'd rather move onto the next individual health lead, than work for free or even worse be stroked.

I take it when you prospect for group you discuss their needs for other products before you quote the medical?

 

[Full Throttle]

My experience with small group has been the leads Cigna sends me (thanks for nothing) and internet leads asking about groups of one and two's.

Ok in august we have open enrollment, for groups of one....but they are almost always taking about how they can barely afford the group health premium.

What I am going to be doing is telemarketing for individual health and small groups. I'd rather move onto the next individual health lead, than work for free or even worse be stroked.

I take it when you prospect for group you discuss their needs for other products before you quote the medical?

Tell them you help your clients with their group insurance on a some what complimentary basis as long as they have other business with you. Otherwise, I can not afford to work for a half a tank of gas. That will probably lead to them asking what else you do.

 

[LGilmore]

"take it when you prospect for group you discuss their needs for other products before you quote the medical? "

The 0% commission takes place on 1/1/11, so don't know yet. Most all existing business has other coverages or investments with me, so it will just be one of those extra things we do.

As for new business? It will be interesting to see what happens.

 

[YouGotMyMoney]

As for new business? It will be interesting to see what happens.

Yeah down here in South Florida, you get $3 pmpm for groups sized 2-3. I mean I guess I might have to do a few to earn "my dues", but I know these people will take advantage of your knowledge......thanks everyone for your thoughts.

 

[HealthGuy]

Mark: Beware of every small group 5 or under stroking you for free for every cost saving idea and plan and then going back to their old broker and implementing your ideas. I will spend about 3 minutes prospecting a small group. I tell them upfront the only way I work with groups is IF and only IF they are unhappy with their current broker. Then I make them prove it to me: sign the agent of record then you get my time. Small groups are strokers.

 

[YouGotMyMoney]

Then I make them prove it to me: sign the agent of record then you get my time. Small groups are strokers.

How often do they do that?