Adding Medicare to Your Business

Being a Final Expense agent can be a very rewarding and lucrative business.  Adding Medicare and Ancillary Health Products to your portfolio WILL Supercharge that business and significantly increase the Return on Investment that you are already making in leads and time in the field.

How much can I make?

The answer isn’t as simple as it is with Final Expense.  Where Final Expense pays you a large amount up front, the commissions with Medicare and Ancillary products pay significantly less, BUT the renewals are much higher than what you will find in Life Insurance.  Let’s look at an example below.

Agent Becky adds Medicare

Becky is a seasoned Final Expense agent running a steady 20 Direct Mail leads a week.  She is on a 100% contract and her renewal on all carriers is currently around 5%  She’s a solid agent that writes good business, she closes around 20% of her leads and has a industry average 1 year persistency of 78%, her average sale is also around the industry norm of $650 Annual Premium.

As you can see above Becky makes a very respectable $63,710 a year, AFTER the cost of her leads have been factored in.  Assuming Becky keeps up this rate of work year after year, her income will grow to $77,000 after year 5 as her Final Expense renewals start to add up.  Note however that as the years go on the income growth starts to taper off due to the lower long-term persistency of the Final Expense industry.

Let’s add Medicare Advantage to Becky’s Portfolio

Becky realizes that MOST of the people she’s sitting in front of are on Medicare and decides to COMPLIANTLY market healthcare products to her clientele.  Becky manages to write 2 Medicare Advantage plans each week from the same original batch of leads, let’s see how this plays out over the next 5 years.

As you can see, Becky is able to more than double her income because Medicare Advantage RENEWALS REMAIN EVEN for the life of the policy; As long as the client stays on one of Becky’s plans she get paid year after year.