You probably already know that at least 10,000 Americans turn 65 every single day and are expected to do so over the course of at least the next ten years. That makes for a great opportunity for insurance agents selling Medicare supplement products. Most of these seniors will additional coverage that will comprehensively manage all of their health concerns in retirement years. Many will have a basic understanding of Medicare supplement insurance, but they rely on insurance agents to further explain the issues and help them identify a product most in line with their unique concerns.
Know the Product Well
Medicare supplement products are somewhat different from other standalone insurance products and you need to be appropriately prepared to capitalize on this opportunity.
First of all, you need to understand Medicare comprehensively. Medicare has been the subject of amendments over the course of 50 years of legislative change, meaning that its increasingly complicated. This level of complexity can lead to confusion for beneficiaries and agents alike. However, it also positions you as the savior of the day if you are able to understand the various facets and explain it to your clients.
Understand Medicare as much as you possibly can to come across as a professional and be able to help tailor your responses directly to the clients' concerns.
Choose the Right Places to Target
One other thing to consider in the process of selling Medicare supplement insurance is that there are plenty of benefits to selling this online or over the phone.
This allows you to target the right states. Research from the Kaiser Family Foundation shows that only 16% of the country are Medicare beneficiaries. However, that number is lower in younger states and higher in older states. For example, 21% of the population in Maine are Medicare beneficiaries but only 11% of the population in Utah are Medicare beneficiaries. This means that you can specifically target states that have a high population with a significant percentage of residents who are aging into Medicare. This gives you a large pool of Medicare beneficiaries to sell to.
The huge population of California, for example, makes it worth targeting. In nearly all states, bear in mind that you'll need a health insurance license in order to sell Medicare supplement products. In many ways, it’s not much different from selling a disability plan. However, bear in mind that certain states like North Carolina require a separate med sup certification. Speaking to an experienced brokerage can help you identify what states to target and the necessary paperwork you need to have filled out.
Know When People Are Most Likely to Apply
Being familiar with the product as well as the market is another crucial component of selling Medicare supplement insurance more effectively. There are three scenarios in which a beneficiary can apply for Medicare supplements. The first is during the open enrollment period or the first six months after they turn 65 and enroll in Medicare Part B. These applicants are not subject to underwriting and therefore, cannot be penalized for a pre-existing condition. Seniors, however, can still apply for a med sup after the enrollment period, but they are subject to underwriting.
This could lead to higher premiums or even supplemental coverage denial. Furthermore, Medigap plans may be approved outside of the open enrollment period. There are certain types of restrictions that apply when it relates to Medigap, in particular. Supplemental coverage is provided by Medigap through a government and administrative insurance program. However, this means that it's tightly regulated.
You will have to be familiar with some of the restrictions, including that you cannot ask for the payment over the phone, offer gifts with more than $15 or sell a life insurance policy or annuity during a sales pitch for a Medicare health plan.
One of the best ways to make the most of your marketing strategy is to purchase leads and to work with a brokerage that can help you. The strength of your sales pipeline will determine the number of sales you make. If you have a strong list of seniors who want to extend coverage daily, then your book up business will get bigger every single week. Buying Medicare supplement leads can help you to identify people who are already looking for the services that you have to offer and can help assist you in generating these conversations on a regular basis.