Back in the day, distant memory for many of us, agents could earn a good 6-figure income selling Major Med alone.
A lot of water has gone under the bridge since then. Times have changed and with that many have left the industry, incapable of making a sustainable income like they used to. Not being skilled in cross-selling or lacking an understanding of “ancillary” products, they failed to take advantage of new trends emerging in the marketplace.
What are these trends? As you will see in this article, many Producers are once again making a 6-figure income selling Health Insurance, but Major Med has switched roles with Critical Illness and Accident Insurance. Major Med is the new ancillary sale and CI and Accident are the “Major Med.” Let me explain and give you the wherewithal you need to succeed:
As an ancillary product specialist for over 15 years I spent most of my time training agents on the importance of cross selling a high deductible major medical plan along with an accident plan and a critical illness plan. Up until 2008 this was always an uphill battle with many factors working against me. These same factors are often still lingering today:
- Major Medical Compensation not delivering what the agent needed without adding on more products.
- A push back from health insurance agents that thought health insurance was the only product to offer.
- The difficulty training a health insurance agent to sell life insurance and vice versa.
- A major lack of understanding of critical illness insurance.
- The agent’s insistence to bring up the health sale first and leave critical illness and accident on the back burner.
Let’s take a brief look at each of the points above:
1) Major Medical Compensation delivering what the agent needed without adding on more products.
If you haven’t heard, health insurance compensation has sunk to all time lows. And to add more salt to the wound you should know that even if PPACA does not go through, long gone are the days of 20-28% commissions on health insurance. Back in 1999 we used to tell agents to sell health insurance to pay their major bills and sell critical illness insurance to pay for gas, utilities, etc. Today it is the other way around. With gas hovering around $4 a gallon agents need to sell health insurance to pay their gas bills and sell critical illness & accident to pay their mortgage, rent, etc. The agent is not unlike the insured in the ci sale. The agent is selling ci to make their livelihood and the client is buying ci to protect their livelihood!
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