Presenting quotations

[arnguy]

When presenting quotations on individual health insurance do you guys/gals quote the standard rates? Do you, in addition, mention the preferred rates with the caveat that they might not get the preferred rates but should receive the standard rates? Does the presentation differ if face-to-face or via telephone? I am asking these questions inasmuch as I plan to segue into individual health from group health which is GI.

 

[J.R.]

When presenting quotations on individual health insurance do you guys/gals quote the standard rates? Do you, in addition, mention the preferred rates with the caveat that they might not get the preferred rates but should receive the standard rates? Does the presentation differ if face-to-face or via telephone? I am asking these questions inasmuch as I plan to segue into individual health from group health which is GI.

I ALWAYS quote standard. I insert a line saying something along the lines of having a lower premium if they get a preferred rating, but I wouldn't count on it. This way if it bites me in the ass their cool with or if they do get the rating their happy.

YMMVMOFO

 

[arnguy]

Thanks, J.R.

 

[TXINSURANCE]

I would never quote Standard unless I had a reason to do so such as height / weight, condition, etc.

If you are quoting standard that is great because when I call and quote preferred I will get the sale...lol...

It is too competitive to not quote preferred, not to mention not accurate. What does the carrier quote? What does EHEALTH quote? Preferred.

This is not unethical at all, actually just the opposite in my opinion.

If I see someone is +25% or +40% due to height / weight I will tell them. Same with Tobacco. This is far more than the carrier or EHEALTH will do. I don't quote STANDARD much other than h/w because there are too many variables in underwriting.

Over 85% of my cases are issued preferred anyhow so this isn't a big issue. That number may be lower in states I do that don't waiver.

If you are quoting the higher rate you are going to have a rough ride selling individual health insurance particularly non face to face. Competition is high and you need to quote accurate.

Just my opinion everyone has their own spin of course.

 

[somarco]

I use Quotit which defaults to Preferred with no way to override. Default rates (except for tobacco) are all they are going to see from me until we have a meeting of the minds.

Prospects don't listen. I grew tired of hearing they placed their business with another agent that quoted them a lower rate for the same plan.

Now they get street rates until it is time to get serious about underwriting, loads, waivers, etc.

Makes my life easier.

 

[TXINSURANCE]

I use Quotit which defaults to Preferred with no way to override. Default rates (except for tobacco) are all they are going to see from me until we have a meeting of the minds.

Norvax is the same and yes I agree it is the only practical way to do business.

The one I get sick of is "EHEALTH had a lower rate for the same plan" - of course they are comparing different plans or EHEALTH has wrong rates as usual.

 

[J.R.]

I would never quote Standard unless I had a reason to do so such as height / weight, condition, etc. If you are quoting standard that is great because when I call and quote preferred I will get the sale...lol...

If you call any of my clients and tell them that can get preferred rating that would not accurate because if they could have gotten preferred rating they would have already done it with me.

Quoting standard is the right thing to do because less than 5% of the people I have talked with qualify for preferred rating. There is no point to quoting standard after talking with somebody about their health conditions. I'm sorry to tell you Mrs. Smith that your cannot get the best rate because of your H/W. You might be comfortable having that conversation, but I'm not. You deal with a lot higher volume than me so I can see your point. You have to take into consideration my business approach at this juncture.

It is too competitive to not quote preferred, not to mention not accurate. What does the carrier quote? What does EHEALTH quote? Preferred.

In what way is quoting standard not accurate? Most of the other agents are quoting preferred and their all sending the lovely copay savers plans through Norvax in an e-mail. Either that plan or RightStart. That's fine, I can see the point of getting the persons attention quickly on internet leads.

I sent quotes initially and noticed that nobody was reading them and it was a waste of my time when I worked internet leads. "Well, this agent got me a better rate on the same plan. Really, you cannot fix stupid and best of luck to you because the next guy coming will take the deal because he has a lower rate and is probably pushing a saver or RightStart plan and possibly washing an application because there is no way you can get preferred rating. Im not saying you're doing this because I don't know how you operate. I'm not e-health and don't operate in that manner. E-health has millions of dollars to invest in online advertising and pushes a lot of volume. If I was venturing toward becoming a predominately online producer then you are right that would be the competitive thing to do.

I don't quote STANDARD much other than h/w because there are too many variables in underwriting.

Why quote preferred if there are too many variables? Shouldn't you already know that based on your knowledge of underwriting. That would lead me to think that if their are to many variables it's going to be standard anyways.

Over 85% of my cases are issued preferred anyhow so this isn't a big issue. That number may be lower in states I do that don't waiver.

That is wonderful that you are able to get people preferred rating and they are all internet leads. Care to share your secrets to success with the board.

If you are quoting the higher rate you are going to have a rough ride selling individual health insurance particularly non face to face. Competition is high and you need to quote accurate.

As I indicated before, don't see how quoting standard is inaccurate. Let's promise somebody a 4% APR on a house, submit the app and then it comes back at 8% because the agent doesn't know better or is brand new to the industry. Although I'm relatively new to being independent I no my market very well.

I welcome your input.

 

[CHUMPS FROM OXFORD]

Actually, I quote based on the information I have. If mo meds or conditions are listed, preferred it is. HBP? Standard. If my quote is wrong, it is because of the misinformation I received. When explained properly, most people are OK with that.

 

[TXINSURANCE]

Quoting standard is the right thing to do because less than 5% of the people I have talked with qualify for preferred rating. There is no point to quoting standard after talking with somebody about their health conditions. I'm sorry to tell you Mrs. Smith that your cannot get the best rate because of your H/W. You might be comfortable having that conversation, but I'm not.

Why would only 5% of your clients qualify for preferred when over 85% of mine do? Are you advertising on marlboro.com again or obesity.com ? lol...

I have NO problem telling someone they will be rated due to h/w, tobacco, or medical issue - that is my job. I have information that they do not and I need to share this with them so they can make an educated decision on budget, deductible, etc., etc.,

This is no different then someone buying a home or car and running their credit report and finding they are not top tier... same principals apply...

MD must be a no waiver state is all I can think of and the carriers you are writing rate up for every sniffle... I hope you are commissioned on the rate up with these carriers for all of your hard work... lol...

5% preferred is way out of range if you pull stats from any major carrier (which I have done in the past... it helps to know clerical people at major carriers...)

Rate ups are not as common in waiver states - that might be the discrepancy. I don't market a lot in non waiver states at this time.

Enjoy the conversation either way.

 

[somarco]

Why would only 5% of your clients qualify for preferred when over 85% of mine do?

You must have some incredible filters or only prospect in health clubs.

Statistically speaking, carriers reject 20 - 30% of apps. Of those, fewer than 15% qualify for preferred rates.

Or maybe your market is the under age 30 Tonik/Belay crowd .. ..