Although it can be challenging to cultivate enough client trust over the telephone to sell Medicare supplement products, one major draw is the prospect of exponential residual commissions. (Photo: iStock)

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.

Related: Explaining Medicare supplement products

The con of selling Medicare supplements centers around three areas:

          1. Cultivating enough trust over the phone to enroll a senior in a plan.
          2. The annual need for check-ins (via phone, email, or card).
          3. The initial low commissions you make starting out when you don’t have that many clients and have to pay for leads.

Good reasons to specialize 

Here are the top five reasons that make this a lucrative insurance vertical to sell:

          1. Renewals can eventually compound to very large commissions.
          2. Agents can sell this over the phone more easily than final expense insurance.
          3. Due to the continued required amount of service work every year, there’s the potential for more referrals.
          4. 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.
          5. Agents don’t have to visit lower income areas as often as a final expense agent might.

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.

A more experienced agent will not look at these two types of insurance in terms of having to sell one or the other, and may decide instead to sell both. If you’re catering to seniors in both instances, why not offer both products?

Editor’s note: This essay is an excerpt from chapter 1 of “How to Qualify, Present & Sell Final Expense and Medicare Supplements to Seniors” by Glen Shelton and Justin Bilyj. Click here to find out more about the authors and the book.

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