Time to get my feet wet

[senior-advisor-indiana]

I don't understand how continental could keep there increases down when no one else can. I do recall about 2 months ago I save a couple about 80 bucks a month. I moved them from Continental life select plan I forget which letter, to a continental GENERAL H plan. I think maybe the rate increase haven't hit frank yet

 

[Frank Stastny]

I believe that one of the reasons Continental is doing better is because they do a better job of underwriting.

I can write a 65 year old female, non smoking for $93.25 per month. Plan D. Sterling's rates for the same female are $93.05. However, I'll be willing to bet $100 that Sterling has a substantial increase in the next 18 to 24 months. Continental probably won't based on past history. I don't want to be chasing Sterling clients a year or two from now.

I'm sure there are other reasons but I would bet that is one of the biggest.

Companies who have few health questions on their app are insuring more sick people. Sick people have claims and claims are the main reason for premium increases.

The first thing I look at with a new company are the health questions on the app. If they are real easy I don't usually license with that company.

 

[Frank Stastny]

Senior,

Continental had one last year. 9% on Plan D. They have been the best in MO for the last six years.

They have a new company and the rates are suppose to be a lot lower. I think it is in NC that the rates for a D are 70+.

Call and ask to talk to Georgia in marketing, she can fill you in. Very nice lady.

 

[johnrocks]

Frank didn't continental get bought out or does that funny looking old man still own it?

 

[senior-advisor-indiana]

genworth JOhn

 

[senior-advisor-indiana]

Is that new cmpany american contental Frank?

 

[Frank Stastny]

John,

Yes they did, however, I haven't noticed any changes. They have always given me great service. The "little guy" no longer owns it but apparently is still some what of a player.

Senior,

Yes I believe that is correct. They apparently have applied in Missouri and are waiting approval.

Last I heard, agents can license directly with Continental. I prefer to do that whenever possible.

American Pioneer did that and now they have a company called Marquette National I believe. Their rates are lower than American Pioneer's but still quite a bit higher than Continental's.

I represented American Pioneer for quite a while, about six years. Husband and wife applying at the same time got a 5% discount. The rate I sold the policy for was guaranteed for one year. However their health questions were easier to answer than Continental's and that eventually caught up with them almost two years ago. Now they are not very competitive.

 

[Cenla Agent]

Senior,

Continental had one last year. 9% on Plan D. They have been the best in MO for the last six years.

They have a new company and the rates are suppose to be a lot lower. I think it is in NC that the rates for a D are 70+.

Call and ask to talk to Georgia in marketing, she can fill you in. Very nice lady.

Frank,

I think you may be on to something with the Plan D. Sometimes you have to be little different than the competition. Most just come in with F, although I've seen some agents sell B select just to be the cheapest apparently, and in some cases not explain that there are more gaps than just the B deductible that plan B doesn't cover (this was a BC/BS agent who writes a ton).

How much resistance do you get from those clients who swear by F and don't want to pay the Part B deductible, etc. and how do you deal with it?

 

[senior-advisor-indiana]

Thats vital information Frank! Nobody in IN listen to this.

 

[Frank Stastny]

Frank,

I think you may be on to something with the Plan D. Sometimes you have to be little different than the competition. Most just come in with F, although I've seen some agents sell B select just to be the cheapest apparently, and in some cases not explain that there are more gaps than just the B deductible that plan B doesn't cover (this was a BC/BS agent who writes a ton).

How much resistance do you get from those clients who swear by F and don't want to pay the Part B deductible, etc. and how do you deal with it?

I usually get some resistance at first. I consider that to be a good thing because it leads me easily into why Plan D is better.

Regarding the Part B deductible. I show them the premium for Plan F and the one for Plan D. With Continental Plan D for a 65 yr old female is $93.25, a Plan F is $140.17. A difference of $46.92 per month. (Premiums will be different in other states and other companies, but in most cases Plan F will be much higher.)

I then tell them that they are paying an extra $46.92 per month ($563.04 per year.) just to get the insurance company to write the Dr. a check for the Part B deductible, $131, when they can do it themselves and save $432.04 per year.

If they bring up excess charges, I tell them about the change in Medicare in the mid 1990's and since then virtually all doctors now accept assignment. (If you are not familiar with the changes let me know, they totally changed the kind of Plan people need.)

Then, if necessary, I ask them to call their doctor and verify that the doctor accepts assignment. Hence, no excess charges. (It is a bunch of B.S. that their surgeon probably does not accept assignment. That's what agents tell people who know that their doctor accepts assignment, trying to scare them into thinking that they may still have to pay thousands of dollars out of their pocket.)

I point out that Plan D has At Home Recovery, a potential $1,400 benefit each year and that Plan F does not have that benefit.

It they keep insisting that their current agent told them they would be putting themselves at great financial risk by not having Plan F I then explain to them that all agents work on straight commission and the more expensive the policy is the more money they make. If necessary I even tell them what my commission is on a Plan D and what it would be on a Plan F.

I then ask them if they now realize why their agent was so insistent about telling them they have to have Plan F.

When I finish with all that they are usually looking for a pen wanting to know where to sign.

Do you think that they will ever talk to their former agent after that, let alone consider keeping their F and cancelling the D that they just took with me? Hell no they won't.

I just love it when a prospect tells me they have a Plan F. That is money in the bank for me.

I encourage all agents in Missouri to ONLY SELL PLAN F.

That is what their marketing organizations and companies are telling them. I'm just reinforcing it.