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3 Steps To Closing More Senior Health Insurance Leads

The Key To Increasing Your Closing Ratios On Senior Leads Begins Before Your First Call

Are you getting into senior health leads, or thinking about it? You're not alone. By now, you've heard that the senior market is big and getting bigger.

Seniors account for 3 out of every 5 dollars spent on health care today, even though they make up less than 15% of the population. But their numbers are rising.

It will be a lucrative market for top insurance producers - but not all. Like other sales fields, tapping into the senior health insurance field requires the right approach and resources. Here are 3 tips to help you increase your success and closing ratio with senior health leads.

1. Drop the Stereotypes

If you think you know seniors and how to sell to them, think again. For many agents, the first step to capturing the growing senior market is to get rid of tired stereotypes about seniors whiling away their days in a rocking chair on the front porch.

Here are three myth-shattering lessons to know about today's seniors:

• Active
  Today's seniors are living longer and are avoiding settling down. They tend to be more committed to maintaining full, active lives even after they retire.

• Purchasing power
  According to the U.S. Census Bureau, almost 2/3 of seniors (age 65+) have household incomes of at least $25,000 per year. A quarter of them are over $50,000. That may not sound like a lot, but remember that most no longer have to worry about raising a family or paying a mortgage.

  Their average net worth is twice the national average-and they control 3/4 of the country's financial wealth! More importantly, seniors account for 60% of all spending on health care - and they purchase nearly 3/4 of all prescription drugs sold in the U.S.

• Web Users
  A large majority of the Baby Boomers about to grow the senior market into a 78-million-strong bubble are full participants in our Internet age. Many helped to create it. It's true that seniors were late to enter the Internet, but they are now the fastest-growing segment of new users.

The senior market is as diverse as the rest of the population. Although most may share similar concerns, today's seniors reflect the rest of the country's variety of viewpoints, lifestyles and activities - all the more reason to drop old stereotypes.

2. Understand The Need For Information

During the next 25 years, the over-60 segment of the population is expected to grow more than 80%! But the 18 to 59 crowd will only expand by 7%. By 2050, the senior market will increase nearly 150% to about 85 million people.

Medicare has promised to provide health insurance for qualified seniors at least 65 years old, including private carrier programs offering more options and better coverage with certain issues than basic Medicare.

However, Medicare's rules and these options can be confusing for both current and new Medicare beneficiaries. That's where true health insurance professionals like yourself become crucial resources for this huge market.

But with this opportunity comes the responsibility to fully understand Medicare, Medigap and Medicare Advantage programs. Succeeding in the senior market will require that you keep up with regular changes to these various programs and continually look for ways to bring the best value for your senior clients.

3. Have the Right Programs and Tools

At the end of the day, you need to be able to offer the right programs and tools for your senior clients.

Medicare handles its Part A and Part B programs directly. But they rely on carriers and agents like you for its other programs:

• Part D Prescription Drug Program.
  Although Medicare subsidizes much of it, seniors must select a private carrier to provide prescription drug coverage.

• Medigap supplemental plans.
  Medicare's basic programs still incur premiums, co-pays, deductibles and coverage limits. Various private-carrier supplemental programs help seniors cover those potentially large out-of-pocket costs.

• Medicare Advantage (MA).
  Although it's provided by private carriers and agents, Medicare Advantage (or Part C) premiums are heavily subsidized by Medicare. MA plans combine Part A, B and D coverage into a convenient policy.

These programs need to be part of your senior leads toolbox - along with a senior quoting engine so you can compare multiple plans in seconds rather than hours.

Don't Delay

We recently conducted an online survey of health insurance agents and their plans to serve the senior market. Nearly 9 out of 10 of the responding agents already sell an average of 27 senior products a year! And those numbers will continue to grow as more Baby Boomers reach their senior years.

The opportunity is there, and you already have the basic recipe for success - the next step is up to you.

Jeremiah Desmarais is vice president of marketing at ProspectZone. He is the recipient of 9 awards for his marketing and design initiatives online. He is also editor of the ProspectZone Newsletter, which delivers helpful sales articles, tips and marketing strategies to 15,000+ insurance agents monthly. Author of several white papers, Jeremiah is a contributor to the Agent’s Sales Journal, Health Insurance Underwriter and Broker World, as well as a guest speaker at various carrier events and workshops. He is a member of the Society of Industry Leaders.

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Would you like your agents to learn about the latest insurance lead generation tactics and insider news in your own publication? So would we! Please contact jdesmarais@prospectzone.com to inquire about reproducing our content.

Quick Tip

Medicare provides generous benefits for Americans - as long you're at least 65. But what about the pre-seniors in their late 50s or early 60s?

Many of these pre-65 seniors are retired and rely on their previous employer to provide needed health insurance. Unfortunately, as more companies cut back or even eliminate their health insurance benefits, early retirees are finding themselves in a precarious situation.

As you counsel pre-65 seniors facing the loss of their employer-provided insurance, don't forget to explain their COBRA tax benefits-and how you may be able to slash their premiums by nearly 2/3.

The recently expanded Trade Adjustment Act gives eligible retirees a 65% tax CREDIT on their health insurance premiums. That's a tax credit - which is more valuable than a tax deduction.

To qualify, the retiree must be between 55 and 65 and the health insurance premiums must be for a COBRA, qualified continuing individual coverage or other state-qualified plan.

This little bit of valuable knowledge will help you solidify a long-term relationship and establish your reputation as a thought leader for senior health insurance programs.