5 Tips for Selling Medicare Supplement Insurance

 In Insurance, Medicare

Selling Medicare Supplement Insurance can be a great piece of your senior market insurance sales. ASPECT Management has an incredible offering of insurance carriers and products, including many options for Medicare Supplements.  The senior insurance market is a growing market, with Medicare Supplement sales at an all-time high. The U.S. Census predicts that by 2040 there will be about 82.3 million senior citizens. If you are ready to explore this growing market with ASPECT Management, here are 5 tips for selling Medicare Supplement Insurance.

  1. Medicare Supplement Insurance Training

Before you begin to sell Medicare Supplement Insurance, you will want to make sure you have the training that you need. Your customers will appreciate the difference between a well-informed agent, and one who just wants to make a sale.

Start with understanding the details of basic Medicare. This will include understanding Original Medicare, which includes parts A and/or B. Original Medicare provides 80% after deductibles and coinsurance. That remaining 20% liability is why there is a need for supplemental coverage. Additionally, Original Medicare is not an all-inclusive health insurance plan. It’s important for you to understand the services that could result in gaps or out of pocket expenses for your clients.

Many of the services not covered by Original Medicare are covered through additional supplemental insurance products. You can start to learn how to sell Medicare Supplements through the government handbook: the Medicare and You Handbook. The Centers for Medicare and Medicaid Services releases this book every year with the new updates. It will be important to read this guide cover-to-cover every year to make sure you up to date with any changes.

  1. Understanding How Medicare Supplement Insurance Works

Your clients will be coming to you to ask questions on how to use their Medicare Supplement Insurance, so it will be important that you understand how it works. Medicare Supplement insurance is also referred to as a Medigap policy. Medicare Supplement insurance plans are sold by private insurance companies to cover the liability of the 20% and deductibles associated with Original Medicare.

Your client should expect to pay monthly premiums for Original Medicare Part B, their Supplement, and their Part D drug plan. Medicare Supplements are accepted by any doctor that accepts Medicare. Additionally, Medicare Supplements are not restricted like HMO or PPO plans, so clients won’t have problems using their coverage out of network. This is great for clients who like to travel!

Clients do have to qualify for Medicare Supplement Insurance, just as they do for original Medicare. These qualifications include having Original Medicare and not having a Medicare Medical Savings Account Plan, among other qualifications. And there are also services which Medicare Supplements do not cover including long-term care and private-duty nursing.

Not only is it important that clients understand what is and what is not covered, but having these discussions is a great way to introduce future cross-selling opportunities. Just make sure you are in compliance before starting any cross-selling or marketing campaign.

  1. Choosing the Best Medicare Supplement Plans

Choosing the best Medicare Supplement plan doesn’t mean picking the plan with the best commission percentages. There is a wide range of Medicare Supplement Plans available, and you will want to do your homework on them. Understanding the different options will help you know which plan is best for each client.

Here are some questions you can ask about each plan:

  • Do they offer a household discount?
  • How many years have they been in the market?
  • What has their average rate increase looked like over the past three years?
  • What are the loss ratios nationally and by state?

Because ASPECT Management is the senior market specialist, we offer an incredible choice of insurance carriers and products below, including dozens of Medicare Supplement Insurance plans. Remember that Medicare Supplement plans are standardized from carrier-to-carrier, the only difference is price.

  1. Honing Your Sales System

Selling Medicare Supplement Insurance with ASPECT Management can be a simple process. But it’s good to have a plan:

  • Partner with ASPECT Management
  • Determine if you want to sell Medicare Supplements by phone or face-to-face
  • Develop a marketing plan
  • Let ASPECT Management help you contract with the best Medicare Supplement companies.
  • Let ASPECT Management help you with your leads
  • Set appointments, start selling and make money!
  • Always carry a copy of the Medicare and You Handbook on your appointments.

Selling Medicare Supplements is one of the best ways to earn residual income in the senior market insurance business. The reason is that Medicare Supplements pay the same commission for seven years. And some Medicare Supplements pay the same commission for life. That means that your sales compound each year, creating a residual income with no additional working hours.

It stands to reason that if you have more leads, you’ll make more sales. ASPECT Management supports their agents by focusing on agent success. We generate sales leads for our agents by marketing through print advertising, the Internet, direct mail, and other channels. And in addition to sales leads, our sales meetings are packed with product information. We make sure that training is tailored to the needs of each agent.

  1. Sales Training Tips

Wash, rinse, repeat. Just like many things in life, repetition is the best way to learn. It will certainly help you when learning how to sell Medicare Supplements. While it may feel tedious, it’s the details that will set you apart.

Something that you will need to do every year is to read the Medicare and You Handbook. But there are a few other training tips that you should review every year as well. Begin by reviewing the demographics of your target market in your territory. Then ask these questions:

  • How many people are turning 65 in the next three, six, and 12 months?
  • What is the average household income?
  • How many married households vs. single?
  • What percent of home ownership vs. renting?

Once you’ve reviewed your target market:

  • Check to see if the “Do Not Call” requirements have changed.
  • Make sure the standardized plans have not changed.
  • Research to see if any new competition has moved into your area.

For you, selling Medicare Supplement Insurance takes time and patience, but it pays off in a big way. And for your clients, Medicare Supplements can provide true peace of mind as they allow seniors on a fixed income to know they will not be billed in excess of their monthly premiums for medical or hospital services. After reading our 5 tips for selling Medicare Supplement Insurance if you are ready to get started with ASPECT Management, pick up the phone and call us at 866.736.0130.

Supporting our agents is what we take pride in. Contact ASPECT Management to get started.

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