Question about ACA

[Jay Dozier]

I am taking my L&H licensing exam this week. Up until now i have been looking at starting in final expense. But after doing some research I am curious if beginning an insurance career focusing on ACA is a viable option?

I understand it's as earned and will take a while to start seeing income. Is that the only reason not to begin with ACA as opposed to something like Final Expense, which might potentially have faster income?

The health insurance side makes more sense to me from a sales perspective, everyone knows they will get sick at some point, while most people live in denial about dying. I also like the idea of as-earned and avoiding charge-backs.

What am I not considering? What am I missing?

 

[Yagents]

Yes, ACA is a great business. Health insurance is bought, final expense is sold. ACA clients stay on the books for years, and are a lead source for Medicare when they turn 65, and other ancillary cross sold products. The income is as earned, and consistent, but tough to ramp up. Got to find the right clients, middle to higher income, over age 65, in retirement communities, or self employed/small businesses.

Selling final expense also for upfront income is recommended also. I sold term life my first few years to get advances and eat, and finally stopped once residual income was high enough. Didn't like having to "sell" and find new clients to generate income in life insurance space. ACA and Medicare is sticky w/ long term residual income

 

[Jay Dozier]

Thanks for the response. I appreciate it.

Yes, ACA is a great business. Health insurance is bought, final expense is sold. ACA clients stay on the books for years, and are a lead source for Medicare when they turn 65, and other ancillary cross sold products. The income is as earned, and consistent, but tough to ramp up.

I'm curious by your personal definition of "tough to ramp up"?

Months, years,...? Are you talking about until you can afford to eat off what is made money or are you talking about before you are making vacation home in the mountains/on the beach money?

 

[Yagents]

Thanks for the response. I appreciate it.



I'm curious by your personal definition of "tough to ramp up"?

Months, years,...? Are you talking about until you can afford to eat off what is made money or are you talking about before you are making vacation home in the mountains/on the beach money?

Both, all, yes.
Everyone has a ramp, the angle and length of that ramp is different for everyone.
Depends on how quick you can get clients on the books, sales skills, work ethics, etc.

Year 2 end will be enough time to pay the bills.
Year 3 and 5 is when you start to save money, and invest more into biz.
Year 8-10+ is when everything goes on auto pilot, on it ramps up for next 10 yrs.

 

[DonP]

Yes, ACA is a great business. Health insurance is bought, final expense is sold. ACA clients stay on the books for years, and are a lead source for Medicare when they turn 65, and other ancillary cross sold products. The income is as earned, and consistent, but tough to ramp up. Got to find the right clients, middle to higher income, over age 65, in retirement communities, or self employed/small businesses.

Selling final expense also for upfront income is recommended also. I sold term life my first few years to get advances and eat, and finally stopped once residual income was high enough. Didn't like having to "sell" and find new clients to generate income in life insurance space. ACA and Medicare is sticky w/ long term residual income

I’ll correct you on that . Yes if your working middle income America, people that took early retirement , early retirement homes , small business owners ,referrals yes it’s persistent business . If your working Facebook leads , help on demand leads , food banks , super low income ( yes it’s free but they don’t file tax returns and lose their subsidy) it’s crap business that falls off . The orginal poster is just getting licensed and will have to find a high vol lead source to survive and that will be social media . Those leads crap with low persistency.

 

[Newby]

I am taking my L&H licensing exam this week. Up until now i have been looking at starting in final expense. But after doing some research I am curious if beginning an insurance career focusing on ACA is a viable option?

I understand it's as earned and will take a while to start seeing income. Is that the only reason not to begin with ACA as opposed to something like Final Expense, which might potentially have faster income?

The health insurance side makes more sense to me from a sales perspective, everyone knows they will get sick at some point, while most people live in denial about dying. I also like the idea of as-earned and avoiding charge-backs.

What am I not considering? What am I missing?

Don't be afraid of chargebacks. Just expect to have some of them. Run it like a business not like you need to spend every penny as it comes in. If you don't really need the income for a couple years then ACA might be something to totally focus on. But most agents who start new to the biz with final expense do great and make a decent amount of money even during their 1st year IF they don't get suckered in to pyramid recruiter.

Even the best agents are still going to have around 10% of their business not stay on the books through the 13th month. That's no big deal. If you make $4,000 this week and have to pay $400 back is that worse than only making peanuts but not owing any back? Not in my book.

Read up about selling Final Expense on the FexContracting website and give us a call if we can help.