Manager Transitioning from Life to Health

[DAA]

I just accepted a GA position with a MGA who wants me to build a team of 10 or more agents to sell individual health and life products. I've managed life agents since 1990, but have never managed health agents. I'm not concerned about the hiring, recruiting, training and managing of agents as I've been doing that for years. My biggest concern is how difficult is it going to be for me to transition from life to health for field training purposes? My approach to this is to learn everything thing I can learn about the health products we offer so I can book train new agents properly, but I'm a little concerned about the field training. I hope to recruit a couple of well experienced health agents right from the start and learn more from them. Should I be concerned more than I am?

 

[J.R.]

What state are you located in and what health insurance companies do you plan to become appointed with?

 

[DAA]

What state are you located in and what health insurance companies do you plan to beco

I'm located in Georgia and will be selling Assurant and UA.

 

[Crabcake Johnny]

I'd recommend you first become a health expert before recruting and training. Life and health don't have much to do with each other. No one uses their life policy next week for a doctor's visit. There are a lot of landmines in health for clients and agents.

One word to the wise - if the product has "Right" in the name do not sell it. Also, in GA Assurant is not very competitive. What will you be offering to your clients when Assurant doesn't fit? What does your MGA recommend for a family where the husband and wife are both 55 and both smoke? Hopefully you're not gonna say UA.

 

[DAA]

I've been getting a lot of contradicting statements from agents I've talked to in regards to Assurant being competitive. Their MaxPlan seems to be the "hot" one in GA and nearly every agent I've talked to down here has told me it is very competitive. I guess I'll find out when I get out there. As for carriers, all I have available is Assurant and UA. If neither of them fit, I won't get the sale.

 

[Crabcake Johnny]

Somarco? This is your backyard.

 

[Crabcake Johnny]

And you "walking" from a deal I doubt will fly with your MGA during training. What I would hope would not happen is agents go down to Right Start if they come across smokers or rate-ups just to get a sale.

 

[DAA]

I won't last long if I'm expected to "make a sale" just for the sake of selling them something. If it's not right for the client I won't sell it. Not my style. I like sleeping at night!

 

[senior-advisor-indiana]

This is what really bothers me in the insurance world. You can go to a marketing oorg or MGA or career place looking for training and guidance only to find out that you know more than your upline.

No offense to you DAA, I am glad you are here to learn before you go out and BS agents that you know everything.

 

[somarco]

The "hot" seller in GA (at least according to the RSD) is the Right Start and the Save Right HSA). RSD says they comprise 40% of the product sales in GA. Can't say if that is premium volume or # policies sold.

I don't offer either to my clients.

Max is a decent enough plan but pricey. I don't like the way they package the Rx with a copay + 20%.

I have sold a few Max plans but mostly the One Deductible.

Their underwriting can be tough some times. Benefit for benefit they price out higher than Golden Rule on the HSA and considerably higher when looking at copay plans.

The 3 yr rate guarantee (on some plans) is a nice tool. Almost every plan I have sold this year was bought because of the multi-yr rate guaranteed.

Submitted one yesterday on a 60 yr old male who just got a big jump from Blue (50%). I quoted the One Deductible $5000/100% (vs his $3500 copay with $5500 OOP) for $30 less per month. Different kind of plan but he goes to the doc once a year and only takes one med. Never even hit the Blue Rx deductible to get to the copays.

Even though I didn't save any money to speak of, and took away his copays (not using them any way) he liked the fact his rate is locked in for 3 years.

He asked what would happen at the end of 3 years and I said your rate will go up.

How much?

I have no idea.

Well, I guess that is when I call you, right?

Yup.

The new kid on the block is Coventry. If you try to compete against them on copay plans you will lose. Their rates are as good as, if not better, than KP who has been the king of copay plans in Atlanta. If you like a copay and don't want an HMO (or are outside the KP service area) Coventry is the one you will want to use.

I expect to see them writing a fair amount of business thru the end of the year, possibly longer based on early results.

I find it curious that you offer Time & UA. That is two very different products.

The only reason to use UA (under age 65) is for those who cannot qualify for major med and understand the limitations of the product.

Transitioning from life to health is tough, especially if your background is pre-need. Little if any underwriting there. LOT'S of underwriting in health.

My placement rate is in the 95% range. If you don't do a good job on pre-screen you will be lucky to place half.

Time will kick out about 30%+ of the apps that are just thrown against the wall to see what sticks. That is not an indictment, just industry averages (although BX & KP will kick out about half that are not reviewed before sending in).

Another 20% or so will not be taken if you have not pre-sold the client on rate ups & riders.

I am appointed with 10 carriers for major med but I routinely use 3 of them. If Time was my only major med company I would miss probably 80% of the potential sales.

A lot of agents push Time here. Most sell on price and pitch the Right Start & Save Right plan. They push them also because of the 12 month advance.

These are also agents who are weak and don't know how to do anything but sell on price and need the advance.

What kind of volume is your MGA expecting? Is there an agency here already or are you building from scratch? What kind of comp are you offering on the Time product? What kind of advance? Do you have a lead system? How are you going to recruit?