[Note: You may have to click "load images" in your email program if you don't see my pix at the right. Also, if you want to see the previous editions of this newsletter CLICK HERE. ]
Dear Everyone!
Thank you for all the kind wishes you sent about my mother having a heart attack. She is doing well and has started to drive her car again.
I received disturbing letters from some local agents who will no longer talk to me for reporting on some less than honest actions on the part of other agents.
And some of the officers of the Sacramento Association of Health Underwriters won't talk with me because I support change in the system of financing our healthcare. They are taking a Nixonian bunker-mentality. There is no room for dissent in SAHU. I'm a persona non grata at the monthly luncheons (but I go anyway because I won't let them intimidate me.)
One (general) agent said I should "lay low" until it blows over. Yeah, right. Like that's going to happen.
I'm not here to support the industry, I'm here to support my clients. If other agents and SAHU officers have a problem with that, it's just too bad.
They don't understand that if they are not part of the solution... they are part of the problem.
Given the choice of being loved by my colleagues or loved by my clients... that's a no-brainer.
I've made some enemies... and a few powerful ones. But I have some friends in high places at the CA Dept. of Insurance, the Dept. of Managed Health Care (I once worked there,) and in the CA Assembly and Senate. I can hold my own with those who would seek to silence me.
So much for insurance politics.
I do a lot of business in Folsom so I thought it a good idea to join that Chamber of Commerce. I welcome to this missive a lot of new business owners whom I've recently met at the Chamber functions.
-Al
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| Call Now, Call Later... But Call! |
Sales is a funny business. Many of you are in sales of one kind or another and so maybe you can relate to this... or perhaps take a lesson from it.
"No" is not "never."
I can't tell you how many times someone has looked me up after months. In one case it was over a year from our last contact.
The other day I got a call from Suzi age 19. I met her a year ago at a well-known salon in Fair Oaks (major high-end shop with a wealthy client base of already good looking women!) where she was the receptionist.
I was talking to the owner about group medical. He decided he didn't want to go that route as he wanted to keep his people as contractors for tax reasons (typical in the beauty biz.) I ended up marketing major med to the gals there (no men except the owner). None of them wanted it... 18 to 22 year old non-college women think they are invincible and immune from accidents, etc. No sales... but my wife liked the free samples of skin-goops and lotions I brought home!)
Suzi said she left the salon a month ago to work in a doctor's office as the admin person... phones, records, overall "gal Friday" (a job-description used 40 years ago... and probably not allowed today!)
The doctor decided that he would grow the practice by brining in a partner and he said "Suzi, I think we should look into having a group medical plan for all six of us in the office. Make it happen."
She still had my card and called me asking all sorts of questions on how to get a group plan or, if that is too expensive, than getting individual plans for all who qualify.
She was REALLY HAPPY to find me... to find someone who will teach her how to be a "benefits admin" for medical offices... which is what she thinks she wants to do with her life... and it's not a bad career choice.
Why do I sell insurance. Believe it or not it's not the most exciting thing on the planet :-). I do it because it's a good product that everyone needs and which has always served to help people. I'm also in this business because as the story above shows... there is never a dull day... you just never know... you never, never know.
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| A Quick Course on Group Health Plans |
Talking about doctors, I've been talking to more and more of them about both life and health coverage. Doctor's understand that the cheapest phone or cheapest TV or cheapest car is not the best, nor is it what they want.
They understand that cheap insurance is often from 2nd or 3rd tier companies or does not have the options that make the policy valuable (like an accelerated benefit if one becomes disabled or terminal.) Doctors like to have life coverage from a name they know... like Mutual of Omaha... because they understand the concept of "quality."
I've recently learned that most single or partnership practices (one or two docs, a nurse or two and two office admins) do NOT have group health plans.
A LOT of the docs simply pay the IFP (individual/family plans i.e. non-group) for their employees (who have them.) Why they don't have group is still a mystery to me.
They know it is not "legal" to pay for individual plans unless they do it via a bonus system and/or give everyone the same cash.
I'll bet you don't know this. If a company wants to get a major medical plan a large majority (usually 70%) of "eligible" employees have to sign up. What are "eligible employees?" Simple. It is those who are not waived!
What is a valid waiver? Well if someone is covered by another group plan from a spouse or parent, that's fine. Or maybe they are on a government plan like Medicare or welfare. However, if they have their OWN personal plan, that is not a valid waiver.
Now how stupid is THAT?
Say if you have a 10-person company and six people have no coverage and four of them have their own plans... sorry, you probably won't get group approved for your business.
Why? You have 10 eligible employees because none are waived. Six won't make 75% of the eligibles.
However, if those four people were covered by another group (from wife or husband's boss) it would be fine because they are waived and don't count. So that leaves six eligibles. Only 70% (or 5) of those six have to sign up.
Now you know why a company might not want to hire a new employee who has their own plan and does not want to opt for the group. If the boss hires this person, the whole group might be declared invalid due to the drop in participation.
So what do a lot of small businesses do? They just pay for the personal plans and don't bother with group.
Why is that not legal? Because the government says you have to treat all employees equally. What if some employees are old, fat, and sick and can't qualify for a plan? They lose out. It's not "fair" to them that some employees get a benefit and they don't.
Do most business owners care? No,they don't. (Most probably don't even know they are breaking the law!)
There are ways to "work" the system. You need a good agent. The problem is that most good agents won't bother with small groups of five or six... it's a money loser for them.
I do it because I can often cross-sell Mutual of Omaha life. Also I like working with small companies.
If you are paying the IFP premiums for your employees you may be setting yourself up for lawsuit from a disgruntled employee. Talk to me. |
| Bait and switch! |
(Note: This is a guest piece from Ed Hinerman On Life Insurance.)
The practice of sucking someone into the sales process by offering something attractive with the full knowledge that you (the salesperson) can't come through with that offer in the end.
Bait and switch is a favorite topic of those who whine about life insurance and life insurance agents. So, why does it work? Why do people jump at prices that deep down they know they don't qualify for, and then get mad when they don't get those rates?
Cutting right to the chase on this, it's because people don't want to hear the truth. Given the choice of two agents, one who quotes a standard rate because you're obese and that is what you qualify for, and one who quotes you rates that Superman would die for inspite of the fact that he and you know you don't qualify, you won't even return the call to the one who quoted it accurately.
Common sense goes out the window and somehow people believe that the agent that is being honest is really out to burn you. This scenario is plays out most often with two groups, those who smoke and those who are overweight. They inquire about life insurance and, when sent the rates they inquired about, they refuse to return calls. It's like life insurance is really important to them, as long as they can get it cheap.
It often makes me wonder if these guys ever discuss this with their wives. "Well honey, I really wanted to make sure your future was secure, and I was ready to get the job done at $40 a month, but darlin, it's going to be $80 a month because I'm fat, and frankly your future just isn't worth that much. Well, yah, I could have cut down the amount of insurance to make it affordable, but if I can't give you the whole thing, I just don't want you to have anything." Allrighty then!
Or they go with the agent that quotes them rates they can't get, and when that doesn't come through they just drop the whole thing. Another way to stay uninsured.
Bottom line. Get real. If life insurance was the same price for everyone, no matter what their health, it would have to be very expensive for everyone. Life insurance rewards good health and habits. Don't BS yourself into believing that if you go with a low quote and just stay real quiet, you'll actually get those rates approved. If someone quotes you low rates and someone quotes you higher rates, find out why the agent quoted higher rates. Consider it. It may be reality even if it's not what you wanted to hear.
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Well, that's a wrap for this issue. I hope you've found some of the info above useful and interesting. If you have questions about life or health coverage, safe-money annuities, or employer group benefits just give me a call or send email.
Sincerely,
Alan N Canton
InsuranceSolutions123 Agency
InsuranceSolutions123.com
916-962-9296
CA License # 0F31110
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Al Canton, Owner
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I'm Al Canton, owner of the Insurance Solutions Agency.
Everyone promises the best service, etc. So I won't bore you with that message.
Bottom line, I know health insurance, work-supplements, medicare, life, and annuities.
Most importantly, I'm honest. I will not put you in a product just for the money. I've been here 25 years and I've built my business reputation on integrity and honor.
It's that simple.
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