You have been having a lot of conversations with both your existing clients and prospects during AEP. As you evaluated their individual situations to find the best coverage, your discussions may have uncovered additional needs or gaps in coverage. This creates an opportunity to cross-sell ancillary insurance products.
The Benefits of Cross-Selling
To build a successful business, you need year-round revenue opportunities. You also need to increase retention and strengthen relationships with clients. Selling ancillary products is a great way to accomplish both these goals.
Your clients also benefit when you help them identify gaps in coverage that could put them at risk. They will appreciate having you as a trusted advisor who has their best interests at heart. These satisfied clients will bring you more referrals.
CMS Compliance for Cross-Selling
It’s important to follow CMS rules and guidelines for cross-selling.
You can sell ancillary health insurance products during a Medicare meeting, as long as you document what you have done on the scope of appointment form. Such products include:
- Hospital indemnity insurance
- Stand-alone dental and vision plans
- Critical illness insurance for a diagnosis such as cancer, stroke, or heart attack
You must not sell non-health related ancillary products at a Medicare meeting. You can mention that you offer these products, but you must schedule a separate meeting if your client expresses interest in discussing them. Such products include:
- Life insurance
- Short-term care insurance
- Long-term care insurance
- Final expense insurance
- Annuities
The Right Product for the Right Client
Once you have officially wrapped up AEP, you can circle back to clients and set up appointments to review other products. It’s important to do a thorough needs assessment, which requires you to actively ask questions and then empathetically listen to your clients’ concerns and goals. This will ensure you have accurately identified their needs and can offer the right product as the solution. You should be knowledgeable about all the products you offer and honest about how the product meets the client’s needs, which includes being clear about any limitations of the coverage. Otherwise, you risk harming the credibility and trust you have worked so hard to build. Take the time to educate your clients to help them feel empowered to make informed decisions.
Offering the right product at the right time is also important. Annuities are a good option for those turning 65 who may be retiring and looking for a retirement savings vehicle. Life insurance and LTC policies can attract a more varied demographic, as these policies are often more affordable and beneficial when purchased at younger age.
This is also a good time to evaluate what products your clients are looking for that you don’t already offer. Consider adding these products. A diversified portfolio will help you meet your clients’ changing needs over time and improve your sales success.
The team at PTT Financial is here to help you achieve your goals. Contact us today.
