Maximize supplemental sales: a strategic guide for health insurance agents

Particularly with Medicare plans, hospital costs are being passed on to your clients more now than ever. And because a hospital stay or a dread disease usually isn't factored into a monthly budget, that cost is often brushed off. At least until an ambulance parks in the driveway. As the agent, you have a unique opportunity to stop the financial arm of this catastrophe with ancillary coverage.

Cancer policies, hospital indemnity plans, and accident coverage are more than just additional safety nets. They are also, of course, ways for you to bolster your book of business. Positioning these products is key to landing the sale, but how can we find it?

Where to start

Successful ancillary sales start with identifying the right clientele. Certain demographics are particularly receptive:

• Middle-aged professionals (35-55) with higher health awareness and financial stability
• Medicare beneficiaries with large coverage gaps
• Individuals with a family history of critical illnesses
• Self-employed workers and independent contractors
• People with high-deductible primary health insurance plans
• Parents looking to secure additional financial protection for their families

This is not to say that only these groups will be interested in the additional protection, but it is a good place to start. Assess your book of business and see if you have any relationships that fit these categories already.

Timing is key

But when do I bring these policies up? There really isn’t a wrong time, but using good judgement always helps.  Clients can't ponder a plan they don't know exists. If Medicare clients are in front of you, ensure you have consent to discuss these products in their Scope of Appointment. 

Putting these products in front of clients is key, but read the room, too. Is your client overwhelmed getting just a standard policy? Focus on getting their Marketplace plan squared away, and save this conversation for a follow-up email. Don't overwhelm them and blow the whole deal.

Speaking of first quarter, it's a great time to start your agency with these plans. Plant the seeds by sending clients some educational materials. Then, follow up later. Just again, be wary of marketing rules during MA-OEP.

Emailing after they have had time to settle into their primary medical plan is a great move. You can ensure the original sale worked well for them at this time. Then, once you have all that squared away, bring up the opportunity to close some gaps with supplementary benefits.

Or on the flip side, is your client overwhelmed by their out-of-pocket max, but happy with everything else about their coverage? Bring an accident policy to their attention. Some carriers match benefit amounts in $100 increments. This means your client can keep their premiums as low as possible while matching their benefit payouts exactly to their out-of-pocket max.

Your client can't take you up on an opportunity to purchase unless you present---so we recommend you take the ancillary plunge with each and every client. But again, make sure you're doing it mindfully and compliantly. 

Steady the target

Once you have determined bulls-eyes, brainstorm why they work for them. Remember, these policies aren't about selling fear—they're about offering peace of mind. 

Emphasize the benefit of covering expenses current plans might not address, such as travel expenses for a caretaker. Many accident plans offer cash benefits for travel to a hospital or medical facility. This can be a lifesaver for the spouse, sibling, or child helping out.

Highlight the perks: experimental treatments, outpatient services, and income replacement can be included. Some cancer plans, for example, allow access to genome sequencing and consultative services. These might not be covered by a Medicare Advantage or employer group plan. If they are, they usually come with some cost sharing. Choosing a plan covering these costs can be particularly helpful to those with hereditary cancer.

Many of these plans have large stretches of ages for guaranteed issue rights. This means coverage is available regardless of things like illness history, age, etc. If you know your client has a family history of a certain illness, and she falls within the age of guaranteed issue, this is the perfect time to bring up a critical illness or cancer plan. This ensures coverage before that hereditary illness rears its ugly head.

Oftentimes, those not in the business are unaware of guaranteed issue opportunities. You will look like a hero if you get them a policy before rates skyrocket. But the savings might not stop there, either. Household discounts are often offered by carriers, while others might allow spouses or kids to be added.

Then of course, if pathos and ethos aren’t working in your favor, head down the logic route. Present some facts about the reality without one of these policies.

Bankruptcy is attributed to hospital bills or job loss due to illness over 66% of the time. Healthcare.gov estimates the average three-day hospital stay costs about $30,000. If clients don’t have that amount sitting around, or don’t want to spend their savings in three days, the decision is easy.

Overcoming objections

Of course, not every client will jump in right away. Anticipate and address potential client hesitations. Look over your notes and have some answers ready to go:

"I can't afford another insurance policy.": run down a what-if scenario with the client, showing them how these plans will actually save money down the line.

“What a waste of money!”: Not if benefit payouts match the out-of-pocket max. Or even better, if that extra money can keep bill collectors at bay while paychecks aren’t coming in.

"I already have insurance.": Take a look at their policy, if possible, and show them where they are vulnerable to high costs. Remember those medical bankruptcies from earlier? 75% of those people had medical insurance.

"I'm healthy, I don't need this.”: This one can go a couple of different ways. Sure, you might be now, but does anything run in your family that might turn up down the road? Get the coverage now, while guaranteed issue is still in effect, before it’s too late.

Also, unfortunately (or not) accidents aren’t hereditary. And as we mentioned before, some policies can even extend coverage to children who might have a sports injury on the field. There is no planning for an accident, and they happen all the time.

“I’ll think about it once I get older.”: Many policies keep rates lower the earlier in age the policyholder signs on the dotted line. So, if a client thinks they will take the plunge once they hit a certain age or make a certain salary, walk them through the math on the rates for some different age groups.

Compliance and Continuing Education

This is a great habit to have across the board, but it is important to stay up to date on the products you’re selling. Carriers will probably email you updates, flyers, and host events to keep you updated on product information. That part is a breeze.

But what about sales strategies and product comparisons? Enter your field marketing organization (FMO), or more specifically, Action Benefits. Our training calendar, insights, and YouTube channel are loaded up with selling strategies, carrier collaborations, and downloadable content to help you make those supplemental coverage sales dreams a reality.

Get out there

Supplementary health insurance isn't just about selling—it's about providing financial security and peace of mind. By understanding your clients' unique needs, educating them thoroughly, and approaching sales with empathy and expertise, you can build a thriving practice that truly makes a difference in people's lives. If you are interested in taking on ancillary products or adding a new carrier to your docket, get appointed with us.