Here at RBI, we are using the month of January to focus our thinking outside the standard AEP-box, with lots of training and materials to increase your sales. Earlier this week we heard from Tom O’Neil with a closer look at Hospital Indemnity products, with a highlight on Guarantee Trust Life (GTL). But there’s more to Hospital Indemnity. Let’s go deeper.
Why Hospital Indemnity for ACA clients?
As senior insurance agents, we often don’t think about folks in the age group under age 65. These folks are “young people,” and therefore usually outside our focus. But many are struggling with health plans under the Affordable Care Act that feature high deductibles and out of pocket expenses. These folks are looking for alternatives. And if you have a Hospital Indemnity product, like GTL, Medico, or Equitable, these clients could actually be a gold mine.
Hospital Indemnity is a great gap product for people in this age group. Most of the time, Hospital Indemnity carriers have very affordable options for people under age 65, often as low as $30-40. Furthermore, most clients would be willing to pay this monthly premium, just so that they are protected from getting hit by a high deductible payment if they needed to visit the hospital. In my opinion, overlooking this demographic is the same as leaving money on the table.
Where to find these clients
The best way of reaching this type of client is to talk about what you do. For example, I actually got a client during AEP simply from wearing my button down shirt with my business logo on it. A gentleman at the next gas pump asked me about it, and before you knew it, he asked for a business card. When the time was right, he called me up and I was able to get him enrolled in a plan that fit his needs. Agents tend to minimize their experience and ignore the people around them every day. People who know you, people who you meet in your daily life, have no idea what you do. Spend 3 minutes with these people, tell them exactly what it is that you do, hand them a business card. It will be the least expensive lead you ever have.
RBI can help you get started with Hospital Indemnity for ACA clients
We can help you plan out your approach to getting into Hospital Indemnity products. If you are thinking, “well, I don’t have a Hospital Indemnity plan,” contact RBI at 1-800-997-3107 for information about contracting with carriers in your area. RBI works with a great design team who can help you updateyour business cards, letterhead and so on, at discounted prices. Above all, get comfortable talking about your own expertise, and practice your elevator speech. I know you’ll see results.
Keep an eye on our event calendar for great webinars and in-person events to up the ante with your business this year! Click here to see full details.
My first insurance sales trainer loved to tell me, “Don’t leave money on the table.” When it comes to coupling hospital indemnity plans with Medicare Advantage, his advice resonates a little louder. Hospital indemnity plans are very affordable for your clients and pay excellent first-year commissions, often in the 50 percent range (Of course, commission varies by states).
Most hospital indemnity plans offer inpatient confinement benefits ranging from $100 to $600 as well as an ER benefit. Depending on the carrier, optional features include benefits for skilled nursing facility days, follow-up appointments, outpatient surgery and even payment for the dreaded observation status. A cancer rider is an important option you can review with clients when discussing hospital indemnity.
Guarantee Trust Life, Equitable and Medico are carriers we are proud to affiliate with and offer to our agents. Just click on our Carriers page for more information or contact us at the number below. For those of you who concentrate on the T-65 market, note that GTL’s Advantage Plus plan is guaranteed issue for ages 64 ½ to 65 ½.
Bill Ellsworth, VP of Equitable, recorded an excellent presentation last year on how to give a good explanation of hospital indemnity during a Medicare Advantage appointment. Frankly, it’s the best training example I’ve seen, and I refer all of our Equitable agents to Bill’s training located on the password-protected Equiline.com broker site. My contact information is below if you’re an Equitable agent and are interested in learning more about Bill’s winning presentation.
In fact, Bill came out to our Arizona office last year to give us additional pointers on presenting Equitable’s EquiCash product. He definitely made me a believer. If you follow Bill’s outline, you should be able to double your MA commission for a surprisingly large number of your AEP and Lock-In appointments.
Cross selling you say! Presenting a hospital indemnity plan with a Medicare Advantage plan is totally compliant with the Medicare Marketing Guidelines.
Hospital indemnity plans are right there on the Scope of Appointment form. If the CMS-approved Scope form you are using does not list hospital indemnity, Medicare Supplements and DVH products, I’ll be glad to email you a copy.
Finally, don’t forget the younger members of the household. Many of these hospital plans are offered from 40-80 years of age. They’re particularly reasonable for the younger folks and can really help fill in those hefty ACA deductibles. Just remember that hospital indemnity coverage is not minimum essential coverage.
For contracting opportunities with GTL, Medico and Equitable, and to receive more useful training content, call RB Insurance at (800) 997 3107 or email me.