Having the right health insurance package is important at any time in your life, but takes on extra meaning during your senior years, as medical issues escalate, and a fixed income can make out of pocket expenses a grave concern. Your clients depend on you to present a robust insurance package that fits their needs and fills all the gaps. Fortunately, as a local agent, you know the people in your community. You understand their situation and know what products can help them.
When agents discuss plans with clients, they will often cover a Medicare Supplement or Medicare Advantage Plan and leave it at that. In these cases, the client has the Medicare coverage, but you have to consider whether or not they’ll be able to use it – if they can afford the cost sharing, deductibles and copays. Likewise, they may face a multi-thousand dollar out of pocket.
But there is a new sales approach that highlights preparing an entire insurance packet that addresses gaps in coverage and client needs – First Dollar Coverage. In this situation, the agent proposes a package that includes the typical medical coverage, but also takes into account how the client might use that coverage and if there’s any gaps that need to be filled – the cost-sharing, deductibles and copays we mentioned above, or the GAPS. It also considers the client’s lifestyle, do they like to travel, have expensive dental work on the horizon, or a history of cancer in their family. If they go into the hospital, do they have loved ones to watch their house, plants or animals. These are all instances in which supplemental First Dollar insurance plans can make a monumental difference in the lives of our clients.
Agents may be very familiar with First Dollar coverage when it comes to other types of insurance, such as home or auto insurance. Customers often pay higher premiums to avoid any hassles during an insurable event. However, when it comes to medical insurance, it can get more complicated as federal regulations come into play. Individuals can get supplemental polices that help pay first-dollar, but it can be tricky as regulations and insurance plans change year to year. LeClair is here to help agents work thru those changes and stay up to date on product knowledge and federal regulations.
Advantages for the agent in selling First Dollar coverage are plentiful: first and foremost, you know that you are providing your clients with an insurance package that truly fits all their needs. In the past, just making sure that your clients have a medical plan was enough, but we’re now making sure that your clients can actually use their coverage without fear of high out-of-pocket or unexpected expenses.
Since this is your business, it’s also helpful to note that the more policies the client has with you, the less likely they are to switch agents, since you’re satisfying all of their needs.
Finally, the confidence that your clients will have in you, as they see you’re taking care of their holistic experience, can make a quality impression on them which can generate referrals. Everyone wins!
There are many situations in which First Dollar coverage can be an ideal solution for your clients. In fact, any client who has gaps in coverage may be interested in a First Dollar plan. Ideally, every client you speak with should be quoted a robust plan that fills in all the gaps in insurance. See below for examples of how a Senior could use First Dollar solutions:
Sarah is on a Medicare Advantage plan that has a per day hospital charge of $500. She’s admitted to the hospital for chest pain, fever and chills and is diagnosed with pneumonia. She spends 3 days receiving inpatient care. Sarah can file a claim through her Hospital Indemnity Insurance and receive a benefit payment to help cover these out-of-pocket charges.
Vera is on a Medicare Advantage plan with a low max out of pocket but is still worried about indirect cancer costs since there’s a history of cancer in her family. Although her Medicare plan may cover costs like screenings, chemotherapy and radiation, her Cancer policy can also help with expenses related to experimental medications, transportation to appointments and loss of income.
Juan is on a Medicare Supplement plan that only covers emergency services when traveling internationally. Juan is planning a trip to Europe and purchases travel insurance that will give him piece of mind in case of any medical events, can cover pre-existing conditions and provide cancellation benefits if plans fall through.
Insurance that pays for injury or death resulting from an accident.
Insurance for hospital costs for individuals under 65, provided by LifeSecure.
Cancer insurance is a type of insurance policy that provides financial assistance to individuals diagnosed with cancer.
Cancer – abnormal cell growth, heart attack – damage to heart muscle, stroke – brain cell death due to lack of blood flow.
Only $149 for a 2 day ticket (Retail $199)
