With so many competitive Medicare Supplement and Medicare Advantage products in the market, some agents find it difficult to choose the right products to sell. Because of the vast number of options, many agents choose whichever product is cheapest or offer the highest Part B giveback, dental allowance, or OTC benefit available.
When we ask agents why they choose products that way, the response typically goes something like: “Well, if I don’t sell Product ABC, someone else will come right behind me and sell it to my client.” These agents are afraid that they are either doing their clients a disservice or setting themselves up to lose business. Are you an agent who feels that way?
Here is the downside: many companies who come into a market with the lowest rate, lowest copays, or highest ancillary allowances create unsustainable products. Within 2-3 years max, the rates increase drastically, benefits get cut, or copays go way up. Then you have to go back to those clients and move them to another plan which is time-consuming for you and frustrating for the client. This is especially dangerous on Med Supps because your client may not pass underwriting in 2 years. Then you have a client stuck on an unaffordable plan.
Here is the solution: don’t always choose the absolute cheapest plan. Choose a Med Supp with a history of low rate increases, great customer service, and great agent service. You need to put clients with carriers that are easy for you to work with. Otherwise, how can you support them? And when it comes to Medicare Advantage, don’t sell the flashy giveback plans or the ones with $0 copays across the board. If that’s what’s best for them, great. But be careful you don’t set them up to roll to a new plan because their first carrier has an unsustainable plan.
This approach requires some client education on the front end. You’ll need to explain why you are putting them on a Med Supp with a premium that’s $10 higher per month. You’ll have to plead with them to ignore the commercials they will see offering the cheap, flashy Medicare Advantage plans. You’ll have to sell yourself and what you offer to them as an agent just as much as you sell a specific plan.
If you think about long-term sustainability and client satisfaction, you’ll help your clients make the best decision for them. In turn, it’s the best thing you can do for your business.