Starting Out Selling Medigap

[MikeJ]

Hi everyone-

Recently I have become re-licensed, and I have been looking at opportunities to transition back to the insurance industry. After speaking with Frank S. regarding YIO and the senior market in general, I've come to see that Frank is correct - Med Supp has an obvious booming potential due to the rapidly growing 65+ population, problems in the MA world and is much easier to master as a product offering than say commercial P&C for instance.

Having said this, I do have a few questions for those of you working from home offices selling MedSupps often through the mail:

Since most of you are AOR, paid on 1099 direct from the carriers and may have given yourself fictitious business names, how do you set yourself up to file your taxes?

Do you keep copies of all applications in your home office, and reciepts for three years? If app is done through the mail, do you provide a reciept after they return it w/payment? Is that even required?

Do you utilize a P.O. Box or have them mail apps to your home?

Is a website pretty much a necessity?

Is it common to obtain a non-producer license in quite a few states to prospect and sell via the mail?

Are you prospecting only rural markets, are do you find quite a bit of business in urban/metro areas for med supps?

Thank you all in advance for your feedback.


Best Regards,

 

[Norwayguy]

Whoooaaa Hold on their partner...Walk before you ride that horse....What I mean is before you try to sell MedSupps throug the mail in non-resident states. You should try selling some of these plans face 2 face first.

 

[gmhopks]

Hi everyone-

Recently I have become re-licensed, and I have been looking at opportunities to transition back to the insurance industry. After speaking with Frank S. regarding YIO and the senior market in general, I've come to see that Frank is correct - Med Supp has an obvious booming potential due to the rapidly growing 65+ population, problems in the MA world and is much easier to master as a product offering than say commercial P&C for instance.

Having said this, I do have a few questions for those of you working from home offices selling MedSupps often through the mail:

Since most of you are AOR, paid on 1099 direct from the carriers and may have given yourself fictitious business names, how do you set yourself up to file your taxes?

Do you keep copies of all applications in your home office, and reciepts for three years? If app is done through the mail, do you provide a reciept after they return it w/payment? Is that even required?

Do you utilize a P.O. Box or have them mail apps to your home?

Is a website pretty much a necessity?

Is it common to obtain a non-producer license in quite a few states to prospect and sell via the mail?

Are you prospecting only rural markets, are do you find quite a bit of business in urban/metro areas for med supps?

Thank you all in advance for your feedback.


Best Regards,

Forgive my lack of knowledege, but what do the acronyms 'YIO' and 'MA' stand for?

I am a relatively new member myself and am exploring making a career change to one in insurance. I obviously have a lot to learn and this web site is the best one I've found.

Thanks

 

[djs]

YIO = Your Insurance Office, a CRM for insurance professionals. It is sold by Frank, which is why it was mentioned in this context. There are many alternatives, though YIO is geared towards insurance sales.

MA = Medicare Advantage, as opposed to Medicare Supplements.

Dan

 

[GreenSky]

Whoooaaa Hold on their partner...Walk before you ride that horse....What I mean is before you try to sell MedSupps throug the mail in non-resident states. You should try selling some of these plans face 2 face first.

Peter is absolutely correct. Get some face time with your prospects. You'll find it much easier to sell over the phone after that.

You need to become comfortable just setting an appointment by phone before you have enough confidence and product knowledge to sell on the phone.

A website is not necessary.

Rick

 

[Newby]

Why do new agents think they need multiple states? Do you live in a state with few seniors?

 

[MikeJ]

Thanks for the responses so far guys. I'm thinking multiple states because Missouri has awful renewal commish years 2-6 and that has me thinking about KS & IL. In fact, I grew up in Southern IL about 45 minutes from where I live now, just west of St. Louis. The renewals are a whole lot better in those two states.

The reason I'm thinking apps through the mail is that I'm in a metro market so I would think supps are very hard to sell around here vs. MA plans. I do know things are changing on the MA front, so hopefully in a year or two it won't be so hard.

Plus, I have been selling IT products nationwide for the past eight years, and I develop all of my buyer relationships over the phone via cold calling coast to coast. So doing business with someone a distance away & developing trust over the phone line is not an issue for me.

How about some of the business related questions I had asked? Any input would be greatly appreciated. I know many of you have been doing this successfully for a long long time, so I feel you guys have all - most all - of the answers I am looking for.

Thanks again for your help!

 

[DS4]

Why do new agents think they need multiple states? Do you live in a state with few seniors?

I work one county in California and that is plenty.

 

[GreenSky]

You could sell MA plans if you're in the city. I do quite well with them.

Don't need to get into a battle of which is better (Supps) but for people who don't have an extra $150-200 a month, an HMO might not be such a horrible choice. A PPO is almost always a decent alternative.

I think even Frank would agree if he were to market in a big city, he'd be selling MA plans along with supplements.

I'd be happy to chat with you. Just send me your phone via email (below).

Rick

 

[ksigmtsu]

Nothing wrong with MA plans when they fit the client's needs. You're hamstringing yourself by not being open to all options, and you're really doing a bit of a disservice to the client if you don't explain all options. Sort of turning yourself from a broker/expert in the field into a captive agent selling a product that might not be best.

I know that in about a month I'm going to be appointed with 1 HMO MA carrier, 3 with PPO and PFFS plans, and about 7 useful Supplement companies depending on specific situation.

The only thing I wouldn't suggest stressing out over at all would be Part D. The commissions suck, you'd have several to offer just by appointing for a couple MA plans, and nothing is stopping you from helping people enroll through medicare.gov for no commission. It will cost you about 25 dollars in commission when one of your companies isn't the right fit.