When you commit to selling Medicare supplements, you're trading the higher commission you may have earned selling final expense insurance for the opportunity to amass a book of business that will eventually give you exponential residual commissions.
That is the biggest pro of selling Medicare supplements.
The con of selling Medicare supplements centers around three areas:
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- Cultivating enough trust over the phone to enroll a senior in a plan.
- The annual need for check-ins (via phone, email, or card).
- The initial low commissions you make starting out when you don't have that many clients and have to pay for leads.
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Good reasons to specialize
Here are the top five reasons that make this a lucrative insurance vertical to sell:
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- Renewals can eventually compound to very large commissions.
- Agents can sell this over the phone more easily than final expense insurance.
- Due to the continued required amount of service work every year, there's the potential for more referrals.
- It's easier to sell Medicare supplement products to seniors and then cross-sell them a final expense plan with the savings, than it is to sell a final expense plan initially and then cross-selling Med Supp.
- Agents don't have to visit lower income areas as often as a final expense agent might.
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Agents who may be weighing final expense insurance sales versus Medicare supplement product sales will see obvious differences between commissions, the learning curve it takes to get up-to-speed to sell, the amount of annual service required, and the sales environment.
