In this article I will not go into to much detail on the basics of either health or life insurance. If you’re a new agent you’ll hopefully be trained by your mentor. If you’re a veteran you don’t need a refresher course. However, I will go over what I think are important basic features of both health and life that make those products “internet friendly”. Both health and life insurance are intangible products, meaning the client doesn’t get to see or touch what they are buying. What they are buying is a CONCEPT.
The concept is that if they incur a medical expense, some portion of that will be covered by the insurance company or when they die the insurance company will pay money to their beneficiary. When selling online you won’t have the luxury of seeing body language or facial expressions so you have to make sure your client is on the same frequency as you, much more than in a face to face situation.
There are some basic facts about health & life insurance that you must make sure you educate your online prospects about to make sure they are on the same page as you during the online presentation.
o EVERY health insurance plan has a hole in it. Meaning, there’s no health insurance plan that includes EVERYTHING needed to provide what I consider comprehensive coverage. It’s the agent’s job to identify where the holes are, make them evident to the prospect, then show the prospect how, if possible, they can be plugged up to provide the most comprehensive coverage for the lowest monthly premium.
o The lower the deductible the higher the premium and visa versa.
o A PPO is a much better option overall than an HMO.
o Plans with fixed co-pays for routine office visits are more expensive. So this is a crucial area where if you explain the economics (see chapter 10), you can show the client monthly premium savings.
o In most states if the applicant is insurable, group health coverage is ALWAYS more expensive than individual (unless the employer is covering the costs) why? Mandatory maternity and guarantee issue.
o Dental coverage is an absolutely worthless expense (use an HSA to fund dental expenses) the exception is if group dental is offered via the employer’s group plan.
o Put Mom on her own plan covering maternity should they plan on having more children (more regarding this in Chapter 10 of the eBook “How to Build Your Own Online Insurance Agency).
Rick Liuag spent over 20 years as an executive for several telecommunications and technology companies before starting his own online insurance agency in 2004. He has been a top individual producer for mulitple companies each year since 2005