Offering HIP
Notes from Episode 65
Hospital indemnity plans were made to go with MA plans like white wine to fish or peanut butter and jelly.
Offering hospital indemnity plans should be a no-brainer.
It is listed on the SOA
Many have GI periods
Easy underwriting otherwise
Basic plans are usually less than $30 a month
So, why not offer them? Crickets.
"My client may not buy it."
Good. If you are not hearing no then you are not doing your job. You have products that your client will or may not want. I take that back, maybe there are those few people who will buy whatever you offer them, but let's focus on the regular people out there.
How can you offer HIP? Here is what worked for me.
Bring it up during the SOB review:
"Your hospital co-payment is $250 a day, days 1-5. After that, you are covered 100%. There is a hospital benefit that can offset some or all the costs. I will show you that at the end, ok?"
99% of the time clients will say "ok."
After the SOB:
Here are the 3 most common plans my clients choose (numbers for illustration only):
Some only have the Medicare plan with full co-payments and nothing else.
A lot of my clients choose to add that hospital benefit I mentioned earlier. It will give you $300 per day you are in the hospital for up to 6 days and give you $x for ambulance reimbursement. That will run you around $28 per month.
Others will choose to do all this and add the cancer benefit that gives you $x (benefit) if you are diagnosed with cancer for $48 per mo. All this would start on [DATE]. Which sounds best for you?"
Of course, this can change depending on your fact-finding and client's concerns, but this is a usual offering.
Once they pick a plan, you are off to the apps!
You gave your clients options, including just having an MA plan by itself. Was it high pressure? Nope. Was it educational? Yes, if you offer it as such.
Pro tip: Ballpark high. If your clients are okay with $30 a month but the quote comes in at $25, your clients will be happy the policy is actually less than they anticipated. If it is higher than your estimate, then that may give them a reason to second guess by adding the coverage.