Best Medicare Supplement Companies that Pay "For Life" (at least 13-14 years)?

[InsuranceGuy29]

Just received a letter from United Healthcare that they are axing any commission for years 11 and beyond, in most states. Instead, they are taking that money from those years and adding it to the years 7-10 that were normally slightly reduced.

According to United, "most policies end after 10 years anyway.....either voluntarily or involuntarily." From my experience, this is not the case, and I don't buy it.

I think they're just saying this because it benefits them not to pay into those later years. People are living way longer nowadays, and I'd rather keep getting paid for those years, even if it's in a reduced fashion, as it allows a more steady and predictable flow of income.

Me personally, I'd rather have the money constantly and consistently coming in for those extra years. Anyone know what the best supplement companies are that pay longer, into those years (especially for Plan G), and aren't known to constantly be screwing with agent commissions? Thanks in advance.

 

[annon123]

I'd bet not all of it is going to commissions. And what part of median (eg half die before and half die after) life span has UHC not read about? Sigh. Average life span is shorter than median life span. I'd suspect they are using average to try to justify this since using median age of death it won't sound as persuasive since that is an older age than the average age of death.

I am guessing they are using the reduction to not only add to years 7-10 commissions but to also subsidize those being stubborn enough to not to die within 11 years since they are use a community risk pool and can't get more money via age attained rates. Similar to their stunt of using a subsidiary to open (in some states) supps without "extras" that are substantially cheaper. I'd guess they are doing this since they can't close blocks and those who don't pass medical underwriting can't switch to the cheaper one.

Of course that will backfire as that group (in the no extras supps) ages since the not so free extras like gym membership is less likely to be used as people get older so that frees up money. And hearing aides are much cheaper joining Costco for a year rather than use the UHC supp benefit for that, etc so that will free up money. A supp without those extras doesn't have that cushion.

 

[InsuranceGuy29]

I'd bet not all of it is going to commissions. And what part of median (eg half die before and half die after) life span has UHC not read about? Sigh. Average life span is shorter than median life span. I'd suspect they are using average to try to justify this since using median age of death it won't sound as persuasive since that is an older age than the average age of death.

I am guessing they are using the reduction to not only add to years 7-10 commissions but to also subsidize those being stubborn enough to not to die within 11 years since they are use a community risk pool and can't get more money via age attained rates. Similar to their stunt of using a subsidiary to open (in some states) supps without "extras" that are substantially cheaper. I'd guess they are doing this since they can't close blocks and those who don't pass medical underwriting can't switch to the cheaper one.

Of course that will backfire as that group (in the no extras supps) ages since the not so free extras like gym membership is less likely to be used as people get older so that frees up money. And hearing aides are much cheaper joining Costco for a year rather than use the UHC supp benefit for that, etc so that will free up money. A supp without those extras doesn't have that cushion.

Yup...it sounds beyond fishy to me. And, as we all know, these companies rarely do anything to our agent/broker benefit.

 

[axeman462]

Just received a letter from United Healthcare that they are axing any commission for years 11 and beyond, in most states. Instead, they are taking that money from those years and adding it to the years 7-10 that were normally slightly reduced.

According to United, "most policies end after 10 years anyway.....either voluntarily or involuntarily." From my experience, this is not the case, and I don't buy it.

I think they're just saying this because it benefits them not to pay into those later years. People are living way longer nowadays, and I'd rather keep getting paid for those years, even if it's in a reduced fashion, as it allows a more steady and predictable flow of income.

Me personally, I'd rather have the money constantly and consistently coming in for those extra years. Anyone know what the best supplement companies are that pay longer, into those years (especially for Plan G), and aren't known to constantly be screwing with agent commissions? Thanks in advance.

depends greatly on what state you are in. But, Humana pays lifetime in most states, and at least in Florida, they are competitive with their rates

 

[Newby]

In Indiana none of them pay beyond 6-years.

Most have increased the rates so much by the 5th year that they switch to a different plan though. Unless they are too unhealthy to move.

 

[kak6407]

depends greatly on what state you are in. But, Humana pays lifetime in most states, and at least in Florida, they are competitive with their rates

You're talking MAPD correct? His post is in reference to supplement plans

 

[axeman462]

You're talking MAPD correct? His post is in reference to supplement plans

no, I'm referring to their medsupp. In most states in years 11+ they pay 2-3%

 

[kgmom219]

I missed that one! Can you post it?

 

[axeman462]

I missed that one! Can you post it?

Today, UnitedHealthcare is providing you a new Commission Amendment featuring changes to the commission schedule for AARP®​ Medicare Supplement Insurance Plans, insured by UnitedHealthcare®​ Insurance Company (UHIC) and UnitedHealthcare®​ Insurance Company of America (UHICA). Please see your commission amendment dated February 13, 2025, for complete details on all upcoming changes. One of the changes we are making is related to the persistency of the AARP Medicare Supplement policies which we want to explain further. Why are we making this change? As many of you already know and have experienced, the average AARP Medicare Supplement plans' persistency is about 10 years. You may not be aware that most policies terminate (voluntarily or involuntarily) before year 15. This means that most policies do not pay a commission renewal beyond year 14. We anticipate that ongoing industry trends and other environmental factors may shorten Medicare Supplement policy persistency even more. What is the change? As a result of much consideration, we have decided to increase our commissions in years 7 through 10 resulting in commission payments through year 10 that are almost the same as we otherwise would have paid (before this change) for policies through year 14. The second change we are making is to stop paying commissions beyond year 10, referred to as 'lifetime' commission renewals. The average annual renewal commission amount for years 11-14 was $40 each year, most of which will be re-allocated into years 7 through 10 as noted above. For illustrative purposes only, below is an example based on the state of GA, Plan G (actual amounts vary by state and plan). Over 10 years, an agent will make an additional $140 in commissions with the new commission schedule.

What states are changing? This change will be made for AARP Medicare Supplement policies in all states that offer lifetime commission renewals today, except for: FL, MD, ME, NM, TX and WI. We anticipate making similar changes in these states later in 2025. Exceptions are: · The state of WA requires lifetime commission renewals which will continue. · The states that pay 6 years of commission renewals today will not change: CT, IN and NY. When is this change effective? This change applies to AARP Medicare Supplement policies, including internal replacement policies*, with a policy effective date of June 1, 2025, and later. This change does not impact policies effective prior to June 1, 2025, nor does it impact the commission renewals for those policies if your client changes plans (and the change is not an internal replacement*) after June 1, 2025. *Internal replacements include plan changes between UHIC and UHICA products. See your commission amendment for complete details.