Q. How can I increase my hospital indemnity sales?
A. With the ever-increasing deductibles, co-pays and co-insurance on Medicare Advantage plans, agents and clients are looking for solutions to fill these gaps in coverage. Daily Hospital co-pays, ambulance co-pays, outpatient surgery co-pay, or co-insurance, and skilled nursing benefits are just a few examples of benefits that a member could benefit from on a Hospital Indemnity Plan. It can also help with reducing the clients out of pocket exposure.
Many insurance carriers are now offering a Hospital Indemnity product with very competitive benefits and premiums. Agents who can provide these additional coverage options not only increase their client’s coverage but generate more referrals when their clients use these benefits. Of course, their income potential will rise with each new hospital indemnity sale.
The key to increasing hospital indemnity sales is to let the clients know what their out of pocket exposure would be on their Medicare Advantage plan and offer them an option for reducing that potential budget-busting expense. Agents can provide peace of mind as well as quality coverage to their members which only leads to more clients. Never assume that your client is not willing to pay $30 or $40 per month in additional premium. Offer the best coverage option that you can and allow them to choose. If you assume that they won’t take the coverage, you have already lost the hospital indemnity sale and potential referrals for additional Medicare clients.
The best way to increase your hospital indemnity sales is understanding the value-add to your clients. Providing them with the education to understand the protection and show the financial security you are offering is critical to increasing your sales.
A single night in the hospital can be enough to strain many households’ finances:
- $1,974 to $2,346 per day – cost of an average inpatient hospital stay
- 37% – the portion of Americans who say they have enough savings to pay for a $500 to $1,000 emergency
Here is a great example of how hospital indemnity plans can help with benefits and filling in the gaps:
Don is admitted to the hospital with pneumonia and acute respiratory failure. His stay lasts five days, two of which are in the intensive care unit. His condition was not pre-existing. Don has purchased a hospital indemnity plan with a $0 per injury or illness deductible. This is how his claims benefits break down:
| Benefits covered by Don’s hospital indemnity plan | Amount |
| Daily intensive care benefit | $6,000 ($3,000 per day x 2 days) |
| Daily inpatient hospital confined benefit | $6,000 ($2,000 per day x 3 days) |
| Doctor visits while hospital confined benefit | $250 ($50 per day x 5 days) |
| Benefits payable before per injury or illness deductible | $12,250 |
| Less per injury or illness deductible | $0 |
| Total benefits paid | $12,250 |
Susan undergoes laparoscopic gallbladder surgery. The procedure is performed same-day at an outpatient hospital surgical facility. Her condition was not pre-existing. Susan has purchased a hospital plan with a $1,000 per injury or illness deductible. This is how her claims benefits break down:
| Benefits covered by Susan’s hospital indemnity plan | Amount |
| Outpatient surgery facility benefit | $1,200 |
| Outpatient surgeon benefit | $1,800 |
| Outpatient assistant surgeon benefit | $360 |
| Anesthesiologist benefit | $540 |
| Benefits payable before per injury or illness deductible | $3,900 |
| Less per injury or illness deductible | ($1,000) |
| Total benefits paid | $2,900 |
Again, explaining to your clients that hospital indemnity benefits will vary based on the plan and options they select as well as their medical situation is essential. However, by physically demonstrating the cost-saving opportunities can help you increase your hospital indemnity sales. It’s also yet another way to build trust with your clients – showing them you are protecting them financially.
If you are in need of worksheets to use during your presentation or would like to add hospital indemnity plan options to your portfolio, contact Agent Pipeline now! Call us at 800-962-4693 to learn more about product availability in your area.
-Answered by: Lester Conn, Regional Vice President
Lester Conn has been with Agent Pipeline for over 8 years and is currently the Regional Vice President in the California, Wisconsin, Minnesota, Missouri, Illinois, Michigan, and Ohio markets. Before working at Agent Pipeline, Lester was an agency owner specializing in life insurance products. If you would like to speak with Lester, contact him at 800-962-4693 ext. 6463.
