Long Term Care and Disability Insurance

Medicare Supplement plans – enhancing your bottom line

Presented by Leonard Berthelsen As an industry, we have been talking about the impact that the baby boom generation was going to have as these folks become Medicare eligible, and well, it is upon us. Despite being well-versed in Medicare and the options available, there is still a tinge of anxiety that comes up when I start to think about it. Do I stay on my current health coverage after reaching Medicare eligibility, or do I go on Medicare Part A &B? Which way is going to give me the best coverage at the best price? If I delay going on Medicare will there be a penalty? WOW, it can be mind boggling and I’m in the insurance business! Think about a consumer and how confusing it can be for them when looking at all the options. They have many decisions to make and are they making the right one? Medicare, Medicare Supplements, Medicare Advantage, Prescription Drug Plan and Supplemental Health coverage can weigh heavily on the minds of consumers. And, that is just on the surface, as each one of those has multiple options within itself. I’m getting clammy hands as I write this. Let’s look just at Medicare supplement coverage and what that can add to your bottom line. Someone turning 65 and in their open enrollment period becomes eligible for Medicare and can purchase a Supplemental plan without evidence of insurability. No medical underwriting, just age, gender, build, and if they are a tobacco user, are generally all the underwriting that takes place. It’s a fairly simple process. As a trusted advisor, your real value comes into play in navigating which carrier is going to meet their expectations and determining which plan with that carrier is the right choice. There are some reports coming out that suggest there are not enough advisors working in this market causing many consumers to make decisions about their health care on their own. Some are making the right decisions while others are merely guessing and hoping that they got it right. Do you think you could become that advisor that has the expertise to navigate the market and make Medicare supplemental plans an important part of your insurance practice? Most Medicare supplemental plans offered today have level commissions for the first five to six years. Every time a client renews their coverage, the renewal is paid to the advisor. If an advisor wrote five supplemental plans a month, he/she could add $15,000 to their bottom line. When the clients renew their coverage, that $15,000 is earned again plus the additional commission for the five new monthly plans for the new year. This means that by the end of year two, the advisor has added a nice $30,000+ to their bottom line. Continue that same thought process out to the end of year five and now you have some real dollars to consider. This could boost your annual income by $75,000 – $100,000 by the end of the fifth year. That is not counting any LTC, hybrid LTC, life Insurance, annuity or supplemental products that may get placed along with the supplemental plan. Becoming the “go to” advisor for Medicare supplemental coverage might just put your career on a different plateau.