We get asked all the time: is hospital indemnity insurance worth selling alongside Medicare Advantage?
Our answer? Absolutely! Now more than ever, in light of the Coronavirus pandemic. If treatment is needed for a diagnosis, most people will be responsible for paying at least some of the expenses. These two offerings together have the ability to provide your client more complete coverage.
As you can imagine, more Medicare Advantage beneficiaries are being left with sizeable bills after hospital stays. Hospital indemnity insurance is a valuable offering that can pay a beneficiary’s inpatient hospital stay expenses.
Many people choose Medicare Advantage plans for their low, or nonexistent, premiums and added benefits. However, those plans often come with high deductibles, copays and out-of-pocket limits. Hospital indemnity insurance provides a set amount of money directly to the beneficiary after a qualifying event. This amount can be used to pay for ER visits, deductibles, surgeries, observation stays, medications and much more. Some individuals opt to add riders to their policy to help pay for cancer, skilled nursing care or ambulance rides.
Who is the ideal prospect?
The best candidates for hospital indemnity insurance are often your existing clients! Look for individuals who have $0-premium MA plans, or those on limited budgets who have a hard time affording expensive out-of-pocket costs.
What are the regulations for selling hospital indemnity policies?
Agents are not permitted to sell hospital indemnity policies during a Medicare sales appointment unless the client has checked off the hospital indemnity related box on their Scope of Appointment form. However, per 2018 Scope of Appointment rules, same-day compliant scopes are allowed.
Why sell Hospital Indemnity Insurance
- These plans are extremely valuable to MA beneficiaries who have high deductibles, copays, and out-of-pocket expenses.
- The product sells itself. The annual premium for a hospital indemnity plan for a senior can be as low as $400. If that senior is forced to stay in a hospital for even one day, they’ve recouped their investment – and then some!
- You can sell it to clients of any age.
- Unlike MA plans, you can sell hospital indemnity insurance year-round.
- It’s a great product that can boost your commissions!
- Cross-selling a hospital indemnity plan to Medicare Advantage clients as well as those in high deductible health plans is and will continue to be an enormous market opportunity.
Stay in touch with your clients. They are likely concerned or unsure about the current environment due to the Coronavirus. Ask the question: “Would you say you live on a fixed income? Would you be able to afford a visit to the hospital lasting for several days?”
By working with a full service insurance FMO like Carolina Senior Marketing in North Carolina, you can help your clients get the most out of their policies!
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Editor’s note: This post was originally published in November 2019 and was updated in July 2020 to reflect the current pandemic.
