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Dear Everyone!
I sell life insurance. It's a good product, but trying to get people to understand that it is for the LIVING and not the dead is a devil of a job.
Lots of people ask me how I can work in a business were there is more rejection than success.
Losing out on life insurance sales is part of being an insurance agent. There will be times when I make a sale and times when a consumer tells me "no thanks." How the agent deals with these rejections is very important. It is easy to be excited and stay on track when the agent is making sales and feeling good about this business. But when things are going bad and you miss out on a sale, you need to stay on track even though it may be difficult.
Losing out on sales goes along with the territory. I try to remember, I'm not the only insurance agent in the world! For this reason there will be times when consumers turn to other agents and insurance companies to make a purchase. This does not necessarily mean that I did something wrong. Believe it or not, I may not earn a sale because the consumer simply wants to buy from somebody else... however they "used" me to get all the info. I know that I can do everything right while offering a great deal and still miss out. This may not sound fair, but it is something everyone in personal sales must get used to.
When I miss out on a sale I can do one of two things: feel badly for myself... or find another consumer who wants to buy from me. Obviously, the latter is the better of the two options. With so many consumers in the market for life insurance I try not to waste time dwelling on those who don't want to work with me.
-Al
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Q & A: HSA Accounts
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HSA "certified" health plans are all the rage... and or good reason. They are often the best value for the money that you can get in a health plan. An HSA health plan is just a plain old health plan that has been "vetted" by the IRS such that it contains certain required provisions and limits and standards.
In 2003 the Congress wanted to get more people to buy health insurance plans. They decided that plans should have a high deductible so as to make them cheaper. In order to give people an incentive to buy them they created a great tax deduction administered by the IRS.
Basically when you get an HSA plan, you also get the right to open an HSA Savings account where you deposit money. It's just like an IRA... but better. Let's talk about this account.
1. What is an HSA (Health Savings Account)?
Answer: An HSA is a tax-advantaged savings account you can use in conjunction with certain high-deductible (low premium) health insurance plans. Account contributions, qualified distributions and earnings are all tax-exempt. An HSA allows you to deposit a portion of your pre-tax income into an FDIC-insured savings account and use those funds to pay for qualified medical expenses. Any unused money stays in the account from year to year and most HSA banks offer a variety of investment options, including FDIC-insured savings accounts, and market-based investments. Interest or investment returns accrue tax-free. Prior to age 65, penalties may apply when funds are withdrawn to pay for anything other than qualifying medical expenses. Once you turn age 65, you can also use your account to pay for things other than medical expenses.
2. Do I have to invest my HSA money in the stock market?
Answer: No. With an HSA you have the option to keep your money in an interest-bearing, FDIC-insured, savings account. But, most HSA administrators offer mutual funds or other investment options for you, which you control, after a minimum account balance (varies by bank) is met.
3. Was December 31st the last day I could contribute money into my HSA for the 2008 tax year?
Answer: Like an IRA you have until April 15, 2009 to contribute money into your HSA for 2008 tax purposes. eHealthInsurance recommends you speak to a licensed tax professional before making any investment or tax-related decisions.
4. I've lost my job and I can't afford COBRA. But, I have an HSA through my former employer. What happens to the money in my HSA when I don't opt for COBRA?
Answer: The great news is that once open, your HSA stays with you regardless of who you buy health insurance from. So, if you lose your job and don't opt to continue your HSA-eligible health plan through COBRA, you can still use the money in your HSA to pay for qualified medical expenses. But you won't be able to continue putting money into your HSA. If you enroll in an HSA-eligible health plan at a later date you will have the option to move any money you have in your current HSA into your new HSA.
5. I lost my job and I have elected COBRA. Can I use the money in my HSA to pay my monthly premiums?
Answer: Yes, you can use the money in your HSA to pay COBRA premiums.
6. What's the maximum I can contribute to an HSA this year? How can I maximize my pre-tax contribution to my HSA?
Answer: The maximum that the IRS will allow you to contribute to an HSA for the 2008 tax year is $2,900 for an individual plan and $5,800 for a family plan. HSA account holders who are 55 or older can contribute an additional $1000 in the form of a catch up contribution.
7. What's the smallest deductible I can have with an HSA-eligible health plan?
Answer: The smallest deductible you can get with an HSA-eligible health plan is $1,100 for an individual and $2,200 for a family. It's also important to note that the out-of-pocket maximum (the maximum amount you'll be required to pay out-of-pocket in a benefit year, typically including co-payments, coinsurance, and deductibles) for an individual plan can't be more than $5,600 or $11,200 for a family. These caps are set by the IRS.
8. Can I contribute a different amount each month, or am I committed to a level of commitment once I sign up?
Answer: There is a maximum amount you can contribute each year, but there is no monthly minimum. You typically have the option to manage your HSA online, and change your contributions as you see fit. If you have an HSA through your employer, and they allow you to make your HSA contributions through payroll deductions, it's probably more convenient to contribute the same amount each month.
9. Do I have to spend the money in my HSA account before the income tax deadline, and, if so, can I take money back out of the account to avoid losing it?
Answer: No. This is not a "use it or lose it" kind of account. You're not required to take a distribution from your account each year. In fact, you can delay making medical payments out of your HSA and let your balance grow tax free. Once you turn age 65, you can also use your account to pay for things other than medical expenses. If used for other expenses, the amount withdrawn will be taxable as income but will not be subject to any other penalties. Withdrawals from an HSA for non-qualified medical expenses before you turn 65 are assessed a 10 percent tax penalty. Before making any investment or tax-related decisions, I recommend you speak to a licensed tax professional.
About 90% of all the health plans I sell... both individual and group are HSA certified plans. If you call me, it is what I will most likely recommend. You should consider getting one.
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My Customers
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I'm often asked "Who are your customers these days?"
In today's financial and economic environment, fear is running rampant and justifiably so. Let me share with you a little of what I've been seeing in my client base as well as where I've been finding them. Perhaps you will see yourself here.
The customer who calls me and is looking for health insurance RIGHT NOW, probably just experienced a significant change in his/her life that is a triggering event. People don't mess with their insurance for the fun of it. My health insurance customer is most likely one of five types of people. Maybe you are one these.
In our current economy, they could very likely be middle class, middle aged pepole with all the normal obligations that come with it, a mortgage, kids, credit card debt, two car payments, etc. Guess what? Their company just closed a division and now they are without a job! They may or may not have a severance package that includes health insurance, but even if they do, the coverage is not going to last forever. They have to be at least a little bit scared and not accustomed to buying their own health insurance.
These people are used to structure. It is someone who has worked at the same company or at least in the same industry for a good number of years, has paid vacation and a predictable schedule. They have been living the "American Dream" and now it has gone wrong. The don't like changes but are now forced to buy their own health insurance.
Another face I'm seeing more and more frequently these days is just one step removed from the person who just got fired, laid off or downsized. This person just received notice that effective the first of the upcoming month the health insurance will no longer be available as a company paid benefit due to economic pressures on the company. They must do away with the health plan and cut some other cost or close the doors. How I help this person is much the same as the first, but a little different because they have more time to make their decision.
The next client type probably also had a triggering event that made them start looking for health insurance RIGHT NOW, but at least they are familiar with buying their own health insurance. These folks are employed by a company that does not provide any benefits. This client is usually more of a free spirit that is willing to give up some security for some freedom. The client often works for a smaller company than their corporate counterpart - with the exception of the part time retail workers who can't afford anything anyway unless they are young with very few other bills. Sometimes these folks are are in the market for health insurance, sometimes not.
Then there are the customers like today's state employee family members. The employee is covered at 100% of the cost of coverage, but it is very expensive to add family members to the plan. The state employee family member is a pure premium buyer. I do not have any coverage to offer, that covers everything as well as the state employee's health insurance plan. This customer simply can not afford to add the family to the state plan, but knows the value of good health insurance and is looking for the best coverage value available, not the cheapest. They are good customers.
Last but not least we have the self-employed people, which is my largest market. They are the most diverse group of people I encounter. This is where the old saying "God gave you one mouth and two ears" comes in. I have to listen to what each one of them has to say in order to find the right plan for them. Their motivation for being self-employed ranges form scheduling around other obligations such as home schooling their children or to simply try to make more money than they could working for an employer.
They are fiercely independent and make their own decisions. Usually they are accustomed to some change in their lives because they are accustomed to constant change in their business. Their budget varies greatly due to everything from money made, to money invested into the business, to which season of the year it happens to be. These people are used to accessing risk and making choices.
Of course, there are other types of health insurance customers out there, such as the brand new college graduate or the person that needs a temporary policy for 3 to 6 months while waiting for their normal employer provided benefits to kick in, but at least 90% of my market will falls into one of the aforementioned categories. I'm often asked why I don't do much with travel insurance or short-term coverage. It just makes a lot more sense for me or any agent to concentrate on the 90% as opposed to the 10%. As in all sales businesses, I have to consider the odds and decide how to help the most people.
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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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