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October 07, 2001 at 08:00 PM
Short-Term Medical Seen As Good Sideline Business For Agents
By Marcella De Simone
While college graduates have many decisions to make, how to guard themselves against potential financial hardship caused by illness typically isnt among them. But this can be a regrettable mistake, according to Fortis Health.
It behooves college graduates to consider how they will protect themselves when they havent yet secured employer-sponsored coverage and they are no longer eligible dependents on their parents plan, or their school-sponsored coverage runs out, the Milwaukee-based company says.
Short-term medical coverage is designed for people generally in good health who might experience a gap in coverage for a variety of reasons, according to information from Fortis.
But how does an agent sell short-term medical coverage to a market that is largely young, healthy and on a limited budget? Through their parents, says John Radovich, national sales director for Fortis.
Agents who have success selling short-term medical insurance to college graduates know how to market the product, Radovich says. Typically, they buy a list of addresses of parents whose children are graduating, then mail product information to the parents with the endorsement of an alumni group.
Going through a college association allows agents to use the schools stationery, which heightens the likelihood that parents will read it, Radovich says, adding that unsolicited agency mailings are often discarded as junk mail.
Radovich says he doesnt mind sharing the companys strategy because the market is so large and virtually untapped.
He estimates there is a potential $2 billion market for short-term medical insurance, which includes not only college graduates but also independent workers; workers who have been laid off or are in between jobs; new employees waiting for their job-sponsored coverage to begin; temporary employees; and early retirees with a short wait for Medicare coverage.
