Jane Dotson
Selling medical insurance can be a rewarding career, with the financial services industry having a track record of generating more millionaires than any other industry. To sell medical insurance, you must be licensed in your home state and possibly other states, depending on where you plan to sell. You will also need to complete pre-licensing education and pass a state-administered test. It is important to partner with a reputable health insurance group agency agreement (GA) that offers a good mix of carriers and products, fully vested contracts, training, support, and technology. You can sell medical insurance over the phone, in person, or through the federal Health Insurance Marketplace.
Characteristics of Selling Medical Insurance
| Characteristics | Values |
|---|---|
| Income | Lucrative, with the potential for six-figure and passive income |
| Method | Over the phone, in-person |
| Requirements | Licensure, registration, training, certification |
| Clients | Individuals, families, small businesses |
| Location | State-specific |
| Support | Partner with a reputable health insurance GA |
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What You'll Learn
How to get licensed to sell medical insurance
To sell medical insurance, you need to be licensed. The type of license you need depends on the type of insurance you want to sell. For example, if you want to sell auto or home insurance, you'll need a Property and Casualty license. If you want to sell health insurance, you'll need a Health and Life license. This is the most common type of license and it allows agents to offer a wide range of insurance products to potential clients.
To obtain a license, you must fulfill the requirements set by the state's insurance department. This typically includes completing pre-licensing education, passing a state licensing exam, undergoing a background check, and submitting an application with the necessary fees. The time it takes to get licensed can vary from a few weeks to a few months, depending on the requirements of your state and how quickly you complete your education and exams.
Pre-licensing education courses are designed to provide you with the knowledge and skills necessary to succeed as an insurance agent. These courses cover a range of topics, including general insurance and contract concepts, policy provisions, federal and state programs, federal acts, and federal taxation ramifications. In the US, you can also sell federally subsidized health plans, known as Obamacare, by completing a pre-licensing course at an insurance school certified by your state.
Once you are licensed, you can start selling insurance and earning commissions. Selling insurance can be lucrative, as you can earn residual income through commissions on the policies you sell. You can also be your own boss and work with industries and clients of your choice.
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Tips for selling medical insurance over the phone
Selling medical insurance over the phone can be a daunting task, but it is one of the top methods for generating leads and retaining clients. Here are some tips to help you get started and improve your sales abilities:
Prepare in advance
Before you make a sales call, ensure that you are well-prepared and organised. Have all the relevant documents and files open and easily accessible so that you don't have to spend time searching for them during the call. This will help you stay focused on the conversation and build a connection with the client. Jot down notes during the call or even record it, so you can refer back to the conversation if needed.
Prioritise the client's needs
Remember that each prospect has varying knowledge of insurance and their own unique circumstances. Take the time to understand their situation and tailor your conversation to their needs. Use the client's name throughout the call and make them feel valued. Address any concerns or questions they have, and don't talk down to them, even if you are the insurance expert.
Focus on closing the sale
The most crucial part of the conversation is often the "closing", where you find out if your efforts have paid off. Be ready to nudge the prospect towards a concrete action, such as directly asking for the sale. Engage them in a discussion about the real reasons they need insurance, and listen for clues that give you insight into their concerns.
Diversify your marketing strategies
To increase revenue, it is important to diversify your marketing strategies and cast a wider net to attract more potential leads. Research the types of marketing materials that your desired customer base will respond to.
Handle objections effectively
Objections are a natural part of the sales process, and you should be prepared to handle them effectively. Common objections include clients being satisfied with their current provider or seeing no reason to switch. Ask questions to understand their perspective better, such as when they last shopped around for insurance, and highlight how market changes and demographic shifts can impact rates.
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How to sell medical insurance to small businesses
There are a few key things to keep in mind when selling medical insurance to small businesses. Firstly, it's important to recognise that small business owners have a unique set of needs, responsibilities, and budgetary constraints. As such, the strategies used to sell insurance to large businesses may not be effective for small businesses.
When pitching to small businesses, it's crucial to build a personal relationship with the owner and stakeholders. Demonstrate empathy and show that you have their long-term health and the business's sustainability in mind. Ask them how a serious illness or accident to themselves or an employee would affect their business without health insurance coverage. Emphasise that prevention is key, and that employee downtime can be critical for a small business.
It's also important to remember that many small business owners are offering health benefits for the first time. They will look to you as a valuable educational resource, not just a salesperson. Take the time to meet with potential clients, listen to their concerns, and provide personalised advice. Educate them on health benefits and terms, as well as changes in health reform, reporting, compliance, and other best practices.
When crafting your sales pitch, avoid focusing solely on price. While cost is a significant factor, quoting low prices may not win you long-term loyalty. Instead, highlight the value and quality of your health plans and how they can help small businesses retain top talent. Be mindful of their budgetary constraints and offer affordable solutions, such as health reimbursement arrangements (HRAs) or qualified small employer HRAs (QSEHRAs).
To sell medical insurance to small businesses, you will likely need to register with the relevant authorities and complete any required training. For example, in the United States, you may need to register with the Federally-facilitated Marketplace and sign the Small Business Health Options Program (SHOP) Privacy and Security Agreement annually.
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The benefits of partnering with a health insurance GA
If you're thinking about selling health insurance, it's important to consider the benefits of partnering with a health insurance general agency (GA). Here are some advantages of doing so:
Access to Expertise and Resources
A good GA will provide you with the necessary training and support to sell health insurance effectively. They will have a deep understanding of the industry and the specific products and carriers they offer. This expertise can help you navigate the complex world of health insurance and make more informed decisions.
Increased Efficiency and Reduced Costs
Partnering with a GA can lead to increased efficiency in your business. They often provide access to online platforms and tools that streamline processes, such as quoting, renewals, and claims processing. This not only saves you time but also reduces administrative costs, allowing you to scale your business more cost-effectively.
Enhanced Marketing and Sales Capabilities
A reputable GA will offer a range of marketing resources and support to help you attract new clients and boost sales. They can provide valuable insights into niche markets and specialty products, enabling you to stand out from the competition. With their help, you can develop more targeted and effective marketing strategies and expand your reach to potential customers.
Independence and Flexibility
Working with a GA allows you to maintain your independence while benefiting from their resources and expertise. You can focus on selling and earning more without the overwhelming burden of handling everything alone. A GA empowers you to be your own boss and make a substantial income, all while providing you with the backing and support of a larger organization.
Compliance and Certification Assistance
Selling health insurance requires navigating various certifications, such as the annual Federally Facilitated Marketplace (FFM) certification. A GA can guide you through these requirements and ensure you are compliant with the necessary regulations. They can provide you with the information and resources needed to process applications through Healthcare.gov or other relevant platforms.
By partnering with a reputable health insurance GA, you can take advantage of their expertise, resources, and support to enhance your sales capabilities, efficiency, and independence in the health insurance industry.
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How to get appointed with health insurance companies
To sell health insurance, you must be appointed with carriers to offer their products. This means that you are representing their product and brand, and it is important to understand the responsibility that comes with this. As an insurance agent, you are legally responsible for conducting due diligence on behalf of your clients and may be held liable for any mistakes made in the process.
To get appointed with health insurance companies, you must first become a licensed life and health insurance agent in your state, or any state in which you plan on selling. The basic insurance licensing requirements include taking an exam preparation course and passing a state exam. You must also complete the annual Federally Facilitated Marketplace (FFM) certification to sell ACA health insurance products. This certification is tied to your National Producer Number (NPN) and must be completed before you can process applications through Healthcare.gov.
After obtaining your license, you must then partner with a reputable health insurance General Agency (GA) that offers a good mix of carriers and products, fully vested contracts, training, support, and technology. A good GA will empower you to sell more, earn more, and stay independent.
Finally, you must sign an official document indicating your agreement to the terms and conditions of the carrier and field marketing organization (FMO) you will be working with, and meet other requirements from the carrier. The exact contracting and appointment process can differ from carrier to carrier, and some may ask for additional documentation, such as proof of Errors and Omissions insurance, your license to sell, and a W-9 for tax purposes.
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Frequently asked questions
To sell medical insurance, you must first become a licensed life and health insurance agent in your state. This involves taking pre-licensing education and passing a state-administered test. Once you are licensed, you can choose to get licensed in other states as a non-resident. You will also need to complete the annual Federally Facilitated Marketplace (FFM) certification to sell ACA health insurance products.
Selling medical insurance over the phone is one of the top methods for generating more leads and retaining current clients. Callers convert 30% faster than web leads. It is important to be personable and take the time to understand your client's circumstances. At the end of the call, be ready to close the sale by nudging your prospect in the right direction with concrete actionability.
Selling medical insurance can be a great way to make passive income. If you can get your "book of business" up to several hundred clients, you should be able to make a six-figure income. For each policy you sell, you will receive a monthly commission (usually $25 per member) for every month they stay on the plan.
