hospital indemnity

Hospital Indemnity – Take Action Tuesday: weekly action items to build a stronger business


Senior Agent Contributor: Tom O’Neil

Note from the Author: While most of this blog post is a product of my gray matter, I will borrow shamelessly some content from RBI’s Charlie Ferrell, our National Sales Manager.  He has some great insights into our business, surely developed when I was training him as a young pup new agent many years ago!

Now that AEP is over, we enter into the MAPD world of reduced commission advances for the next 11 months.  What is a good way to keep up the cash flow?  What about the business you left on the table with your turning-65 new-to-Medicare clients? Hospital Indemnity plans offer good commissions for agents year-around, and a unique opportunity for all those T-65’s you enrolled going back for the last 5 or so months.

Drop the excuses and sell Hospital Indemnity

Hospital Indemnity Image

Agents often tell me that Hospital Indemnity plans are too hard to sell, their clients are broke, underwriting is difficult, the clients enrolled in a supplement and so have no need for Hospital Indemnity, yada, yada.  GTL (Guarantee Trust Life) has the cure.  They offer guaranteed issue status to all applicants ages 64 ½ to 65 ½.  How do you beat that?  GTL may be a perfect fit for your MAPD clients who can afford a $40 or $50 premium.  If you sold a supplement to a client who is still working, GTL can provide some loss of income protection for days spent in the hospital as well.

Have a new client in the age range 64 ½ to 65 ½ who anticipates a hospital stay later in the year?  This plan is a slam dunk.  Yes, there is a 6-month pre-existing condition clause.  Accidents covered at issue, of course.

In my state, Arizona, GTL’s Hospital Indemnity plan pays around 50% commission for the first year, with a 9-month advance.  Let’s do the math.  My last guaranteed issue GTL application with a $39 monthly premium was submitted online on a Monday, and the approximately $200 advance was in my bank account on Thursday.

Start with Existing Clients

Okay, so where do I get the $2K teaser in the blog title?  I am guessing that any busy agent that goes over the last 5 months of enrollments will be able to find at least 10 clients that fall into the guaranteed issue age range.  Reach out to these clients about the benefits of having Hospital Indemnity coverage. Don’t stop there.  The fully underwritten GTL can also be a gold mine.  They have an easy “yes” or “no” online app, as well as a paper app.  One of our top agents estimated that about 70% of his clients pass underwriting easily.

One of the best Hospital Indemnity training videos I have seen was produced by Bill Ellsworth, VP of Equitable. It is available on Equitable’s broker page as well as on YouTube. Check it out to get started on training.

For those agents working in areas where GTL is not available, of course, we also offer contracts for Equitable, Medico and other Hospital Indemnity plans with more traditional underwriting.  If you do not have a Hospital Indemnity contract in your portfolio, or to request a specific market analysis for your area, give RBI a call at 800-997-3107 and talk to Charlie about these great products and how to present them.

Join Charlie Ferrell for a introduction to Hospital Indemnity with RBI’s Webinar Wednesday topic for January 18: “Mastering Hospital Indemnity!” Register now!

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