by Nick Williams | Apr 20, 2018 | Articles For You
Why I believe I have the perfect business model!
I choose to work in the “Senior Insurance” market for many reasons. First of all, there is the age triggered Medicare need. Almost all seniors consider age 65 a pivotal turning point in which they need to address their insurance needs. There are more than 10,000 Turning-65 seniors every day in America. They all need help! They will all buy or enroll in some type of insurance program. Translated; a hard-working insurance agent will have many people to “help” by selling Medicare supplements or Medicare Advantage products. Many of these sales require no monthly payment from the insured and pay the agent generous level commissions for the life of the plan.
Before I bore you with the details; your success in this market should provide you with a second year income approaching $200,000 (which I will illustrate below). I think you’ll agree that it compares favorably to most other professions. It gets better from that point going forward with the compounding of commissions.
I’m just getting started. There is generally no medical underwriting for Turning-65 seniors and simplified underwriting in many other situations. As a result of poor advice and/or decision making, many of these individuals have no life insurance. The SIMPLIFIED issue, high commission final expense products address this need. In contrast, try getting a $1,000,000 term policy issued. Good luck! The amazing thing is the premiums and commissions are often similar, perhaps favoring the final expense policy.
Did I mention the potential for 401K rollovers? Yes those opportunities will present themselves, as will IRA’s, CD’s, and a bunch of other accounts that are prime to be rolled over into annuity contracts offered by insurance companies. This is a very lucrative transaction for the agent.
There are other products these seniors need. Again, you will find, many are simplified issue with what is termed a “Knockout” application. Answer NO to all the questions on the application, have a clean Rx/MIB check (these are very liberal) and the policy is often issued.
Let me delve further into the Medicare products. They have the benefit of guaranteed issue for Turning-65 and simplified issue thereafter. The Medicare Advantage policy is always guaranteed issue and has the infamous AEP or “Annual Enrollment Period”. From mid October to early December each year there is the AEP or as some refer to it, “Medicare Season”. Seniors are conditioned to make buying decisions at this time. Many agents, after working hard for years, wind down their careers and only work the AEP each year and are in essence retired for the rest of the year. Perhaps they have a little service work to do or an occasional referral to sell.
Ok, let me summarize up to this point. Low cost, high commission products. Great opportunity for the big money sales on 401K rollovers or other transferring of assets. Easy issue products. A “Season” when prospects are conditioned to make changes. Hmmmm….. Do I need to go on? OK, I will.
Let me address the power of level commissions. First let’s put this into perspective. There is a big lie in the life insurance business regarding renewals. Many life products have 1-2% renewals. Many, many term policies have zero renewals. Whole life tends to be ok with renewals, but I don’t think that product is even comparable with Medicare products. Point being, many agents are disappointed when the “Renewals” they were hoping for never materialized. You won’t be disappointed here. I’m going to throw some numbers at you from the perspective of a strong producer’s commission potential. Let’s start with 300 Medicare supplement sales in a calendar year duplicated in the following years:
300(sales) x $316(avg commission) = $95,040.00 annual commission
These exact numbers are dependent on many factors such as the geographic area you work and type of plan on which you focus. Regardless, you should end up at these numbers.
Now, suppose the above agent did the same level of production year two. Of course, this assumes the agent didn’t improve his/her craft or numbers, which doesn’t make sense. But also let’s assume there was a 10% lapse rate (which is a fair percentage to use).
Year two total of commissions and renewal income $185,576.00. This doesn’t even include Annuity, Final Expense or Indemnity sales.
We could go to year three but I’m not going to continue this exercise, I think I’ve already made my point.
Let’s talk about who we are dealing with. My clients know they need to address their Medicare needs. Once I get past the “Salesman/Prospect” phase of the relationship, I become a very important person to them. It’s sad but not entirely unusual that I often become one of the closest friends for these seniors as they age. Sometimes their kids don’t pay much attention to them and their friends start becoming ill or even worse dying off. I know it’s morbid, but true. There is a great level of appreciation and fulfillment an agent can derive from this career if they allow themselves to experience it.
FYI – If you have any inkling of being less than 100% honest, stay out of this business. You don’t want to get caught hurting seniors, financially or any other way. The powers that be are not forgiving when this is done.
Let’s not forget the recent pandemic and what that has done to our industry. The Medicare business THRIVED during this period. Seniors must have their insurance! Not only did business continue to grow, but new means of technology made it easier to sell over the phone. Yes, things have gotten better for us! Build your career on the phone in your Pj’s or Face to Face shaking hands with those in need. Either way, it’s a Win-Win!
One last thing. In this day and age we have a Cancel-Proof business model as well. You have the opportunity to leave the HR driven corporate world. That, in itself, is a sigh of relief for many.
There are other great opportunities in this vast business I refer to as the insurance industry. I promote the senior market as the best option for the following reasons:
Simplicity
Lack of barriers to entry
High-income potential
Recession Proof
Cancel Proof
Non-Cyclical
Sure, if you grew up in the aristocracy of the social classes, you may want to tap into the millions that your sphere of influence offers. For the typical American that wants or needs to go out and carve their own path, look no further than this great market in this great industry.
What is the cost of success? For some, it is not a question they ask, it’s simply a bell they answer. For others a puzzle..
203 Roper Mountain Rd. Ext.
Greenville, SC 29615
Mon-Fri: 9:00 am to 5:00 pm EST
Closed on Saturdays and Sundays
Also closed on all Major Holidays
by Nick Williams | Apr 20, 2018 | Articles For You
Why I believe I have the perfect business model!
I choose to work in the “Senior Insurance” market for many reasons. First of all, there is the age triggered Medicare need. Almost all seniors consider age 65 a pivotal turning point in which they need to address their insurance needs. There are more than 10,000 Turning-65 seniors every day in America. They all need help! They will all buy or enroll in some type of insurance program. Translated; a hard-working insurance agent will have many people to “help” by selling Medicare supplements or Medicare Advantage products. Many of these sales require no monthly payment from the insured and pay the agent generous level commissions for the life of the plan.
Before I bore you with the details; your success in this market should provide you with a second year income approaching $200,000 (which I will illustrate below). I think you’ll agree that it compares favorably to most other professions. It gets better from that point going forward with the compounding of commissions.
I’m just getting started. There is generally no medical underwriting for Turning-65 seniors and simplified underwriting in many other situations. As a result of poor advice and/or decision making, many of these individuals have no life insurance. The SIMPLIFIED issue, high commission final expense products address this need. In contrast, try getting a $1,000,000 term policy issued. Good luck! The amazing thing is the premiums and commissions are often similar, perhaps favoring the final expense policy.
Did I mention the potential for 401K rollovers? Yes those opportunities will present themselves, as will IRA’s, CD’s, and a bunch of other accounts that are prime to be rolled over into annuity contracts offered by insurance companies. This is a very lucrative transaction for the agent.
There are other products these seniors need. Again, you will find, many are simplified issue with what is termed a “Knockout” application. Answer NO to all the questions on the application, have a clean Rx/MIB check (these are very liberal) and the policy is often issued.
Let me delve further into the Medicare products. They have the benefit of guaranteed issue for Turning-65 and simplified issue thereafter. The Medicare Advantage policy is always guaranteed issue and has the infamous AEP or “Annual Enrollment Period”. From mid October to early December each year there is the AEP or as some refer to it, “Medicare Season”. Seniors are conditioned to make buying decisions at this time. Many agents, after working hard for years, wind down their careers and only work the AEP each year and are in essence retired for the rest of the year. Perhaps they have a little service work to do or an occasional referral to sell.
Ok, let me summarize up to this point. Low cost, high commission products. Great opportunity for the big money sales on 401K rollovers or other transferring of assets. Easy issue products. A “Season” when prospects are conditioned to make changes. Hmmmm….. Do I need to go on? OK, I will.
Let me address the power of level commissions. First let’s put this into perspective. There is a big lie in the life insurance business regarding renewals. Many life products have 1-2% renewals. Many, many term policies have zero renewals. Whole life tends to be ok with renewals, but I don’t think that product is even comparable with Medicare products. Point being, many agents are disappointed when the “Renewals” they were hoping for never materialized. You won’t be disappointed here. I’m going to throw some numbers at you from the perspective of a strong producer’s commission potential. Let’s start with 300 Medicare supplement sales in a calendar year duplicated in the following years:
300(sales) x $316(avg commission) = $95,040.00 annual commission
These exact numbers are dependent on many factors such as the geographic area you work and type of plan on which you focus. Regardless, you should end up at these numbers.
Now, suppose the above agent did the same level of production year two. Of course, this assumes the agent didn’t improve his/her craft or numbers, which doesn’t make sense. But also let’s assume there was a 10% lapse rate (which is a fair percentage to use).
Year two total of commissions and renewal income $185,576.00. This doesn’t even include Annuity, Final Expense or Indemnity sales.
We could go to year three but I’m not going to continue this exercise, I think I’ve already made my point.
Let’s talk about who we are dealing with. My clients know they need to address their Medicare needs. Once I get past the “Salesman/Prospect” phase of the relationship, I become a very important person to them. It’s sad but not entirely unusual that I often become one of the closest friends for these seniors as they age. Sometimes their kids don’t pay much attention to them and their friends start becoming ill or even worse dying off. I know it’s morbid, but true. There is a great level of appreciation and fulfillment an agent can derive from this career if they allow themselves to experience it.
FYI – If you have any inkling of being less than 100% honest, stay out of this business. You don’t want to get caught hurting seniors, financially or any other way. The powers that be are not forgiving when this is done.
Let’s not forget the recent pandemic and what that has done to our industry. The Medicare business THRIVED during this period. Seniors must have their insurance! Not only did business continue to grow, but new means of technology made it easier to sell over the phone. Yes, things have gotten better for us! Build your career on the phone in your Pj’s or Face to Face shaking hands with those in need. Either way, it’s a Win-Win!
One last thing. In this day and age we have a Cancel-Proof business model as well. You have the opportunity to leave the HR driven corporate world. That, in itself, is a sigh of relief for many.
There are other great opportunities in this vast business I refer to as the insurance industry. I promote the senior market as the best option for the following reasons:
Simplicity
Lack of barriers to entry
High-income potential
Recession Proof
Cancel Proof
Non-Cyclical
Sure, if you grew up in the aristocracy of the social classes, you may want to tap into the millions that your sphere of influence offers. For the typical American that wants or needs to go out and carve their own path, look no further than this great market in this great industry.
What is the cost of success? For some, it is not a question they ask, it’s simply a bell they answer. For others...
203 Roper Mountain Rd. Ext.
Greenville, SC 29615
Mon-Fri: 9:00 am to 5:00 pm EST
Closed on Saturdays and Sundays
Also closed on all Major Holidays