Clients don’t think in terms of Medicare Advantage, Medicare Supplement and ancillary products. They simply want someone they trust to help them navigate Medicare. A broader portfolio allows you to become that trusted advisor.
If you already sell Medicare Advantage, expanding into Medicare Supplement and ancillary products may be easier than you think. The payoff can be significant: serving more clients, generating additional revenue and building a more resilient business. Here are five reasons it’s worth another look.
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Meet More Clients’ Coverage Needs
Around half of all Medicare beneficiaries are enrolled in Medicare Advantage. If you offer a portfolio with a wide selection of Medicare Advantage options, you’re serving these individuals… but what about the other half?
Original Medicare doesn’t use networks, which appeals to many beneficiaries who want to make sure they can see the doctor of their choice. But it also lacks an out-of-pocket maximum, and health problems can result in major costs. A Medicare Supplement policy helps beneficiaries control their out-of-pocket costs and budget their healthcare expenses.
As of 2021, 14.6 million people were enrolled in a Medicare Supplement plan, according to a Library of Congress report. If you don’t offer Medicare Supplement plans, you may miss an opportunity to serve this important segment of the Medicare market.
People in both Original Medicare and Medicare Advantage may also need additional policies, such as vision, dental and hospital indemnity. Although some Medicare Advantage plans provide vision and dental coverage, not all do, making standalone coverage an important option. Hospital indemnity insurance can help cover extra costs during a health emergency and may be especially attractive to clients with high deductibles.
By offering Medicare Supplement insurance and ancillary products, you can provide more comprehensive guidance while helping clients find coverage that fits their individual needs.
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Increase Revenue Through Cross-Selling
Every client interaction creates an opportunity to solve more than one insurance need.
Cross-selling to new and existing clients is a smart way to boost your revenue while delivering an important service. If your clients need additional coverage, they’ll likely purchase it somewhere. Expanding your portfolio gives you the opportunity to become their trusted resource for all their healthcare coverage.
Each policy you sell is another commission. If you want to sell 100 policies, you can sell one policy to 100 different clients, or you can sell an average of two policies to 50 different clients. Both strategies result in the same number of sales, but the second option tends to be more efficient.
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Reduce Risk by Diversifying Revenue
Some carriers have cut or even eliminated commissions for certain Medicare Advantage products. If you depend on Medicare Advantage sales for all or most of your income, this is a troubling trend.
Diversifying your product mix helps reduce reliance on any single revenue source and provides greater flexibility as the market evolves. When most of your revenue comes from a single product, any changes to the market leave you vulnerable, but when you earn revenue from multiple product types and revenue streams, you have the flexibility needed to adjust to changing market conditions.
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Win and Retain More Clients
Consider these scenarios …
- An existing client refers his friend to you. The friend is interested in a Medicare Supplement plan and a dental plan. You don’t offer either, so you have to turn away two almost guaranteed sales.
- A current client needs help buying a hospital indemnity plan. You don’t offer hospital indemnity insurance, so she finds another insurance agent. She ultimately decides to consolidate all her plans with the other agent because it’s easier to work with one trusted advisor.
When you have a limited portfolio, you can lose out on opportunities to attract and retain clients. Expanding your portfolio means you can help more people, and that lets you capture more business.
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Expanding Your Portfolio Is Easier Than You Think
Expanding your portfolio doesn’t mean starting over. You already have a solid understanding of insurance products. You also have professional connections.
If you’re an insurance agent with Western Asset Protection, you have access to a wide range of training and plans. We provide access to top carriers offering Medicare Advantage, Medicare Supplement plans, Medicare Part D, hospital indemnity, life insurance, annuities, dental, vision and more. And thanks to our recent partnership with Western Penn Marketing, our agents now have access to an even broader portfolio of products, as well as additional training opportunities and tools.
Whether you’re looking to diversify your business, increase cross-selling opportunities or better serve your Medicare clients, Western Asset Protection has the products, training and support to help you succeed. Reach out to us today.