Episode Summary
This podcast episode focuses on hospital indemnity insurance and how agents can incorporate it into their portfolio to drive value, boost client retention, and increase earnings.
It begins by defining hospital indemnity insurance. This is coverage that provides cash benefits for hospital stays and medical expenses. It pays on top of other insurance plans as an extra layer of financial protection. Benefits may include a lump sum for hospital admission, daily cash payments, and coverage for expenses like ambulance transportation.
The host asks why agents should consider selling hospital indemnity. The expert guest Mike highlights several key reasons:
1. It builds loyalty so clients become more endeared to the agent. The more products a household has, the less likely they are to leave the agent.
2. It provides more comprehensive protection. Clients appreciate the extra coverage and agents demonstrate they have the client's back.
3. Many hospital patients struggle to pay costs not covered by insurance. 47% can't afford deductibles. 42% wipe out all savings, which averages just $6,000. Hospital indemnity prevents financial disaster.
4. It's highly affordable at around $50 per month. This is far less than the costs of credit card debt or bankruptcy that medical bills can result in.
5. It's profitable for agents at 45-50% commission on the premiums. Adds an extra $300+ per sale.
Mike emphasizes that the #1 reason agents don't sell it is simply because they don't bring it up. But it's easy to quote and sell with online platforms.
When selling Medicare Advantage plans, agents should lead with hospital indemnity's value and use it to "fill gaps" in coverage. For example, pairing it with a high deductible Plan G. Apps only require simple health questions.
Those aged 64-65.5 get guaranteed issues. Follow up later if clients seem disinterested initially. Pick 1-2 plans to become an expert on rather than too many.
Agent testimonials are provided on their success:
- Stephanie brings up hospital indemnity when reviewing Medicare Advantage copays. She highlights the high guaranteed issue chances for certain ages. Follows up later if clients seem disinterested.
- Lee points out how for just a small $20-30 premium boost, an entire hospital stay can be covered. He brings it up on every call.
- They emphasize the excellent first-year commissions. Recommend picking one plan you can know well.
In summary, hospital indemnity powerfully drives retention, client value, and agent earnings. By following the tips in this episode, agents can make it a seamless part of their insurance sales strategy. Offering this supplemental coverage demonstrates an agent's commitment to protecting client finances.
Timestamps
(0:00:04) - Broker Link podcast focuses on helping insurance agents sell more and earn more
(0:01:14) - Mike: What is a hospital indemnity plan? Mike: It pays for benefits
(0:02:31) - When I think about cross-selling supplemental health products, hospital indemnity fits into the mix
(0:06:37) - People who may never have sold supplemental health insurance plans, may be intimidated
(0:10:05) - Many agents ask, when it comes to supplemental products, if is it worth the time
(0:15:57) - Stephanie Barnes: When you provide information on Medicare Advantage, offer additional product
(0:18:55) - Lee Green is a licensed independent Medicare insurance agent based in Texas
(0:21:47) - Mike Miller: Why should an agent be selling this client
(0:22:50) - You've been listening to the broker link, where we empower insurance agents
