Selling Individual Insurance vs. Small Business Insurance

[J.R.]

It is apparent after reading this site that most of the members exclusively sell individual or small group insurance. Is there anybody on this board that does both?

The reason I ask is because I have run into a few instances where I could have had a potential deal had I been able to write group deals and I am thinking about incorporating that as a long term goal for my agency. When I was working for UGA I recall other agents talking about how they were able to take people from a group plan and put them on an individual plan.

Does anybody know what the pros/cons are of taking an individual of a group plan and putting him or her onto an individual plan? 90% of the things I was told when I started was BS, so you could say that I am almost starting from scratch.

-J.R.

 

[STIBROKER]

yes,,,,,

 

[somarco]

Those who are uninsurable need to be on a group plan.

Those who can find other coverage in the individual market should probably opt out of the group and go on individual coverage.

 

[Crabcake Johnny]

Here's a good analogy I tell people using something they can relate to; credit cards.

Say you have outstanding credit and you get an offer; no credit check at all - guaranteed you'll get a card just by applying. The APR is 24%. Do you take it? No. You want the company to pull your credit so you can get the best rate.

Now say your credit is horrible and you get that same offer. You might want to take it since it's guaranteed you'll get the card.

So if you're healthy do you really want to pay outrageous rates?

 

[J.R.]

yes,,,,,

Sti,
What is the yes comment in regards to exactly?

-J.R.

 

[STIBROKER]

Yes I write both individual and group plans.......as well as pull healthy people off group plans.......I have a 5 man group that was issued last month and did an individual plan on the group adman's daughter on a individual plan.....

 

[J.R.]

Yes I write both individual and group plans.......as well as pull healthy people off group plans.......I have a 5 man group that was issued last month and did an individual plan on the group adman's daughter on a individual plan.....

Thank you for answering my question. I am curious, do you do your own telemarketing to obtain laids or farm it out?

The reason I ask is because it seems it would make sense to target both markets to increase productivity and revenue.

 

[sman]

yes,,,,,

Sti,
What is the yes comment in regards to exactly?

-J.R.

You haven't figured out sti's sarcasm yet? You asked if anybody knew the pros and cons of taking an individual off of a group plan and putting them on an individual plan.

He answered yes.

What more could you want? God forbid he actually give you any useful information.

But let's look at some of the pros and cons:

Pros:

1) If insurable, the premium will generally be lower.
2) Your commissions will be higher.

Cons:

1) Could possibly cause the group not to qualify as a group based on participation rate requirements.
2) Depending on the individual plan, he/she may not have the same type of benefits as the group plan.

I see no reason not to write both.

 

[sman]

I am curious, do you do your own telemarketing to obtain laids or farm it out?

Dang sti, just exactly what type of agent are you? Scary. Laid and farm in the same sentence. You're not from Alabama are you?

:P

 

[J.R.]

Thanks for the input.

HaHa, next time I will have to use spellcheck. Sounds like a West Virginia joke waiting to explode.