Explaining Medicare supplement products

Seniors' top concerns tend to be outliving their assets, maintaining their independence, as well as their own health and safety issues. For seniors over age 75, their worries center on family and friends, leaving a legacy and their reputation.

If you have been selling for very long, you have heard about the concept of "features versus benefits."

Features are what the product has or does.
Benefits are why your prospect would want those features.
In other words, features are about the product, benefits are about the user: What will the product do for them?

For example, if you have something that is metal instead of plastic, metal might be a feature. But the benefit might be that it is more durable, longer-lasting, or unbreakable.

Features are the language of logic. Even people who insist they buy logically or based on features do so because that's what makes them "feel" better.

Benefits are the language of emotion. Focus on emotions, not intellect. People buy on emotion but are moved to action by logic.

An easy presentation
A good and easy presentation would be the outline of coverage for the Medicare supplement product provided by an insurance company. You start by showing them the chart of the standardized Medicare Supplement plans. Let them know that all insurance companies now offer the same plans. Plan F with one company has the same benefits as Plan F with another company. The main difference is the premium that each company charges. You'd then go to the outline of coverage where it shows the services that are covered, such as hospitalization, skilled nursing home care, medical expenses, foreign travel and the like.

The outline shows what Medicare pays, what Plan F pays and then what the client would pay. If you're showing Plan F you'd go over the outline for Plan F. By showing them this information it lets them know what the gaps are in Medicare and how the Medicare Supplement will pick up those gaps.

You will want to let them know that you're an independent agent. Tell them that you're licensed with the top carrier in their state, yet if any new plans come out you'll let them know about it. This is very important, because if you don't tell them about the new plans when they become available, another agent will.

Also, use the brochure that your carrier provides. Go over the fact that the plan is guaranteed renewable (meaning as long as they pay their premium they can keep their coverage regardless of claims or health issues), there is no waiting period for pre-existing conditions, and any other benefits that the brochure shows. These are the things you'll be leaving with the client.

Highlights

First day coverage, no waiting period for pre-existing conditions.
Guaranteed coverage with no health questions (open enrollment).
Medical coverage that can be used with any doctor or hospital throughout the U.S. that accepts Medicare assignment.
Automatic claims filing, no paperwork or claims to submit.

Reasons seniors buy senior products

NEED – They feel a need for protection.
WANT – They want to transfer risk from themselves to an insurance company.

Your key to success: Establish the need and determine an affordable way to pay for the coverage. Seniors tend to focus on how a situation makes them feel. Their responses are based on their total life experiences.

For more from Lloyd Lofton, see:

Explaining Medicare supplement products

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