Medicare doesn’t cover all of the insurance needs that seniors have. Your clients might have gaps in coverage that could leave them at financial risk. By cross selling ancillary products, you not only help fill those coverage gaps, but you also build year round revenue opportunities for yourself. But be aware, Medicare has strict marketing rules when it comes to cross-selling to seniors. Before you do anything, make sure you understand how to proceed compliantly.
What Other Insurance Products Do Seniors Need?
Medicare covers hospital care, medical care and prescription drugs, but that still leaves out many important insurance coverage types for seniors.
Long-Term Care insurance
Many seniors are surprised to discover that Medicare does not cover long-term care. Some Medicare Advantage plans now offer coverage for adult home day care and in-home support services, but even these plans won’t cover residency in an assisted living facility. Long-term care can be incredibly expensive, and seniors may be interested in long-term care insurance to cover these costs. In additional to traditional LTC policies, some insurers now offer hybrid LTC policies that combine permanent life insurance with LTC benefits. If the policy owner dies without using the LTC benefits, their beneficiaries will receive the death benefit. Most policies offer benefits for care in the home as well as a facility.
Stand Alone Hearing, Vision and Dental
Likewise, some Medicare Advantage plans offer hearing, dental and vision coverage, but these services are not covered in Original Medicare, and they’re not available in all Medicare Advantage plans. Hearing, dental and vision care are vital to seniors health and well-being as they age. Neglecting this care can lead to other health problems. By offering stand-alone plans you can help them fill this coverage need.
Travel Insurance
Seniors who plan to travel may need travel insurance, especially if they are planning to go outside the country. In addition to providing coverage for canceled plans and lost or stolen items, travel insurance can cover emergency medical expenses that occur while traveling. The CDC warns that people who need medical care in another country will likely have to pay out-of-pocket, even if the country has nationalized healthcare for citizens. Original Medicare does not typically cover care outside of the U.S., although some private Medicare plans may offer coverage. Before traveling abroad, seniors should check their coverage and determine whether they need to purchase travel health insurance.
Life Insurance
Life insurance can fill a variety of needs and provide a wide range of benefits for seniors including cash flow to cover final expenses such as funeral costs and any remaining debts. A life insurance policy can provide financial support for a spouse or other individuals after the policy owner’s death. Some life insurance policies offer living benefits which allow the policy holder to receive cash advances from the policy if they meet certain conditions, such as a terminal illness. There are several types of life insurance policies including term, whole life and universal life, each offering different coverage options and levels of affordability. You can help your clients determine which type of policy is right for their needs and budget.
Annuities
Annuities can provide financial security to seniors who are worried about outliving their retirement savings. Annuities can create a guaranteed income stream for the policy holder during their lifetime. Some annuities include a death benefit that is paid to a beneficiary if the policy still has cash value after the policy holder’s death.
Medicare Rules Against Cross-Selling: Do’s and Don’ts
Medicare insurance agents need to be aware of Medicare’s strict marketing rules that prohibit certain cross-selling activities.
Review the current Medicare Advantage Communication Requirements and make sure you’re complying with Medicare’s rules regarding Scope of Appointment and cross-selling. The rules are detailed, but here are a few important takeaways for agents who sell other products:
- Do complete a Scope of Appointment. Medicare agents must complete a Scope of Appointment (SOA) form prior to each marketing appointment.
- Don’t set appointments prior to 48 hours of receiving a signed SOA.
- Don’t stray from the SOA. During the appointment, agents are not allowed to market products that go beyond the previously agreed upon scope.
- Do stick to health-related products during the Medicare appointment. Agents are not allowed to market products other than health products during the appointment. Health related products include hospital indemnity insurance, stand-alone dental, vision and hearing plans, and critical illness insurance.
- Don’t cross-sell non-health products during your Medicare meetings. Cross-selling non-health products during any Medicare Advantage sales activity or presentation is prohibited! Non health related products include life insurance, long term care insurance, final expense insurance and annuities.
Although Medicare’s rules may seem strict, they’re designed to shield seniors from fraud and abuse. To protect your clients, your reputation and your career, it’s important to adhere to all Medicare marketing regulations carefully.
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