This Year’s Medicare Outlook (And How You Can Use It for Your Agency)
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People in the insurance industry are now implementing their business plans for the current year. I like to think it's part of what we call “proper planning.” After 43 years in the insurance business, I have seen markets come and go, and rely on experience to assess current marketing trends. So, here are some thoughts on how you can take advantage of Medicare products and markets that will affect your production, and add them to your portfolio of insurance offerings.
Medicare Supplements—Very, Very Stable
Initial sale compensation—$$$$ Renewal compensation—$$$$
As near as I know, there are about 120 companies throughout the United States that offer Medicare Supplements. Many of them are regional companies, but several are also national in nature. That allows for a sufficient mix in your portfolio without having so many that you just open up your vest and say, “See, I have this company and this company and so on—which won’t impress anybody other than yourself—and keep you from becoming an accomplished producer for any of them. Let me make the point—variety is available and abundant.
But, the biggest thing I see—as has been the case for several years—is stability in the companies who offer Medicare Supplements. That may not seem like a big deal, but it is. Few Medicare Supplement carriers go out of business, or withdraw their MS products. That is why, you, as an agent, can present your product and be satisfied that you and your client will have a company to rely on more than a year or two down the road. That, unfortunately, is not the case in much of the insurance market, for a variety of reasons—visualize what some major players in the Annuity and Long Term Care Insurance markets have done in the past few years.
As for the opportunity to sell to a huge group of prospects, never has any sector of the insurance industry had such great possibilities. The demographic of “Baby Boomers” will now be in its fourth year (2014) of supplying prospects at a rate of 10,000 per day. The boomers—those born between 1946 and 1964—are not really an “emerging” market, but one that has been going through its Medicare elibible growth for three years now, and offers you an incredible opportunity for new sales for the next fifteen years. What industry has that kind of possibility for you to work?
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