Becoming A Licensed Medicare Agent
Insurance sales can be a lucrative career for the right people. After all, if you become a Licensed Medicare Agent it can be a great choice. If you are not only a motivated self starter but you also enjoy interacting with people, you may succeed in the field of insurance sales. In order to sell Life and Health insurance, you must become licensed. Becoming a licensed Medicare agent is not difficult but there is a process. We list a step-by-step walk-through of the process as you can see below.
Complete Your High School Education Or Technical Training
While formal education such as a Bachelor’s degree is rarely required for sales representatives, employers typically prefer candidates with a minimum of a high school diploma. You may also be able to pursue a technical program or associate or bachelor’s degree. Coursework in areas like accounting, finance, mathematics, and psychology can be useful.
Depending on the organization you want to work for, you may have to complete additional requirements. For instance, roles in technical sales may prioritize applicants with a bachelor’s degree in a field like information technology, while roles in pharmaceutical sales may require education in pharmaceuticals and/or biology.
What type of degree should you pursue to become a Sales Representative?
77% of people working as a Sales Representative earned a Bachelor’s Degree
What skills do you need to be a Sales Representative?
- Interpersonal and Communication
- Strong WORK Ethic
What Is My Sales Process Going To Be
Do you plan to visit your customers face-to-face? Or do you prefer the ease ofconducting your business electronically and over the phone?
Both are viable options, especially now that the vast majority of competitive and reputable insurance companies have adopted an e-application process for agent use.
We recommend you use a relationship selling method when. It is critical to learn about the demographic you’re selling to and offer the best service and product that honestly addresses their needs.
Seniors have seen advertising and sales tactics evolve over many years and are quick to see through them. A sales technique not based on an honest desire to help will raise immediate flags in their minds.
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Start Your Journey As A Medicare Agent Today
Becoming a Medicare agent is a lucrative and rewarding experience. Youre not just providing people with medical insurance and peace of mind but also trusted advice and guidance.
Your prospects rely on you to give them detailed information and your professional opinion. As you become more invested in their future and wellbeing, you may even form lasting relationships.
Are you ready to take the first step toward becoming a Medicare agent? Were here to help!
Choose Your Industry And Develop Your Skills
Once you gain skills and experience through an entry-level position, you can apply for positions in the specific industry in which you want to pursue a career. Prepare for this stage while you’re in your first role by testing your skills and learning the areas of sales you most enjoy.
Once you’ve mastered the basics, you can further specialize in your chosen industry. You may also decide to try out a sales manager role, which will allow you to oversee other representatives on a team and further hone your management skills.
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Getting Your Medicare License
Before you can sell Medicare Advantage, RedBirdAgents.com says, you need a state license to sell health insurance. Then you take a training course specifically in Medicare, after which you must pass the Medicare license certification test with a score of at least 90 percent. The Center for Medicare and Medicaid Services may require specialized certification for some Medicare products. Research what you want to sell so you have the right certification track.
Word & Brown says some states offer multiple different insurance-agent licenses. Do research on which one is right for you. In many states you’ll have to submit fingerprints for a background check. Your state may set a minimum cramming requirement for taking the insurance test in California, for instance, you need at least 20 hours of study from an approved source. Once you pass the test, you should take out liability insurance to protect yourself. You’ll eventually need to take further classes to keep your license.
If you want to do business in multiple states, you need a license in each of them. Some states have reciprocity agreements which can help. If you have a license to sell insurance in one state, the other will reduce the requirements as it assumes you’re qualified.
How Much Does An Insurance Agent Make From Medicare Products
How much an insurance agent makes on Medicare sales depends not only on how many beneficiaries you enrolled, take the following into consideration.
With the right strategy and FMO agency like Team Alvarez giving you admin support, leads, and training, selling Medicare products is a very rewarding business model.
Generally, insurance agents often earn two types of commissions when selling Medicare plans: A dollar amount per application or a percentage of the premium sold .
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Who Would Excel At An Insurance Career In Medicare Insurance
Those interested in an insurance career in Medicare insurance need to be self-motivated and able to adjust in a fast-paced and dynamic environment. Since there are many different choices and options for policies, potential clients need a Medicare insurance expert to guide them through the process of picking the best plan for them. Agents must be knowledgeable about the current plans and educate his or her clients on the advantages and disadvantages of each of those plans relative to their needs.
In this insurance career, there are high first year commission payouts and annual residuals, creating an unlimited income potential. In addition, this insurance job is not very service intensive as most claims are resolved through the carrier.
There is usually no requirement for a college degree when choosing an insurance career in Medicare insurance. However, an agent must prepare for and pass a state insurance exam to obtain a health license to sell insurance before he or she can start writing business and may also need to register his or her fingerprints. With some companies, agents must contract with National Marketing Organizations or National Marketing Alliances to sell Medicare insurance policies from the different carriers. The insurance carriers require certification every year. The section below outlines how to get started in an insurance career selling Medicare insurance.
Why Choose An Insurance Career In Medicare Insurance
One of the biggest reasons to choose a career in Medicare insurance is that the Medicare insurance industry is booming! Approximately 10,000 people are turning 65 every day in the United States, so there is a tremendous need for agents to sell Medicare policies. Since there is no shortage of potential clients, the earning potential for an agent in this career is unlimited.
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How About Sales Tools Will I Need An Insurance Crm And Quoting Platform
There a number oftools available to help an agent be successfulin today’s competitive landscape. Some of these options will include:
1. eContracting Solutions – This tool would allow you to complete contracts online,
speeding up the appointment process.
2. Medicare Quoting Tool / Online Quoting Engine – A Quoting Engine makes it easier for agents
to have access to accurate, up-to-date pricing and plan details for the nations top senior
landscape of product options giving you an expert level of knowledge on the fly.
3. Book of Business Search Features – The Book of Business feature allows agents to
query, search and download their entire client base at any time.
Check out our online platform for Medicare Advantage and Part D sales. A free resource for our agents.
As you can see, these tools are making it easier to work through the contracting process with clients without the need for face to face meetings. These tools, among others, should be considered a standard part of your sales toolbox to help accelerate your sales process.
Technology can help speed up the process, but at the same time presents a new set of sales challenges since you don’t always meet face to face with your customer. Applying these tools andlearning how to effectively reach your prospects with social mediacan be a huge boon to your business.
Help Protect Yourself With E& o Insurance
As a Medicare insurance sales agent, your role is to help your clients prepare for the unexpected and help protect themselves from financial risks. You might have the best intentions, but sometimes things don’t work out as planned.
If a client thinks you’ve wronged them in some way, they could try to take you to court. For example, this might happen if a client discovers that a particular service isn’t covered and ends up having to pay out-of-pocket or if they identify a potentially better plan you didn’t mention.
E& O insurance â i.e., errors and omissions insurance â helps protect you from these lawsuits. It won’t stop a client from filing a suit, but it can mitigate or eliminate your court costs and/or settlements.
Without adequate coverage, these costs can add up to millions of dollars. That’s part of why some carriers require you to have E& O before you can sell with them.
As an insurance agent, you know how important it is to help protect your clients’ finances. However, don’t underestimate the value of protecting yourself as well.
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Should I Become An Independent Agent For Medicare Products
In order to sell Life and Health insurance, you must become licensed. Becoming a licensed Medicare agent is not difficult but there is a process. We list a step-by-step walk-through of the process as you can see below. 1. Becoming a licensed Medicare Agent Complete a pre-licensing course. Courses tend to be similar in price and content.
Study Courses For Health Insurance License
Some states require and offer classroom training with a seasoned licensed health insurance agent who prepares you for the exam. This is a nice option by giving you access to someone who can answer questions as you progress through the course. This classroom training takes roughly a week to complete with the goal of passing the exam at the end of the class.
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Bonus Tips For Medicare Insurance Agents
Becoming an insurance agent requires time, but building a solid book of business takes time, commitment, and extra effort. You must commit yourself to continued training and updates on the Medicare program and the specific products.
One great way to do this is to join communities of other agents, especially ones who also sell Medicare plans. Medicare is a competitive field, but there is plenty of room for everyone. Being part of a community is a great way to stay informed and connected to others who may have helpful advice in areas where youre struggling.
Get Errors And Omissions Insurance
Errors and Omissions insurance protects you in case you give incorrect or misleading information to a client and they choose to take legal action against you. Most E& O policies cover between one and three million dollars and cost between $300-$500 each year. Most insurance carriers require you to have E& O insurance in order to contract with them.
You can purchase E& O insurance through a property and casualty insurance agency or through your FMO, which well talk about next.
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What Certifications Do I Need To Become A Medicare Supplement Agent
Take these specific steps to become a Medicare agent: 1. Obtain Your Health Insurance License 2. Complete Americas Health Insurance Plans certification 3. Get Errors and Omissions Insurance 4. Contract with multiple carriers 5. Complete Annual Carrier Medicare Certifications 6. Meet Continuing Education Requirements
Complete Contracts And Start Selling Medicare
Youre almost at the finish line!
Now that you know what certifications and protections you need to become a successful Medicare agent, you need to get contracted and start making sales.
You must complete and sign a contract with each individual insurance company to be appointed to sell. Your upline can help with this.
As you approach and contract with multiple agencies, youll need a few things, including:
- A copy of your current health insurance license
- A copy of your E& O coverage
- Approved background check
- A completed legal questionnaire
Youll also need to pass the carriers annual certification exam.
It takes time and patience to get approved to sell Medicare through multiple agencies. Medicare, specifically, regulates this process closely.
Each carrier will require agents to go through different processes before approving them to sell Medicare.
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Benefit 3 Youll Stay Informed
Although you retake your AHIP certification exam every year, you still need to do more. Training sessions will connect you with industry publications and the latest updates from the Centers for Medicare and Medicaid Services.
Training to become a great agent doesnt end with your certification. You can become a top-tier Medicare agent, and training is a massive part of that. So contact us to step up your training game today!
Independent Agents For Assurance
If you prefer to work for yourself but appreciate strong support, consider working as an independent insurance agent for Assurance.
âThe Assurance platform empowers you to sell insurance whenever, wherever, and however you want. With access to Assurance’s User Engagement specialist team to help you sort out any carrier issues you face, you’ll never have to figure things out on your own.
Most of the time, you’ll never even need to reach out to carrier reps. Instead, you’ll have access to a wide variety of training sessions made available each week to broaden your knowledge of how to sell Medicare.
Plus, Assurance will assign you a dedicated sales manager. Your sales manager will work closely with you to help you reach your sales goals.
âPerhaps most importantly, Assurance relieves you of the pressure to source leads. Instead, Assurance sends you pre-qualified leads. As a result, when you receive calls, you’ll be speaking with people who have already expressed interest in finding the right Medicare Advantage coverage.
These leads cost you nothing â you don’t have to worry about paying for marketing or other limits on your earning potential. Instead, you can focus entirely on what you do best, and that’s selling Medicare insurance.
You’ll also be part of Assurance’s lucrative commission structure, which enables you to earn year-round, not just during open enrollment.
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How To Become A Licensed Medicare Insurance Agent
Are you stuck in a dead-end job? Are you thinking about becoming a Medicare insurance agent? Youre itching to get out of your current situation, but youre not sure if Medicare sales are right for you. The answer may be yes if the following applies to you:
All of these qualities are whats needed to become a successful agent. Youll partner with a network, and youll find viable leads that can convert into sales. More importantly, youll help seniors get access to the medical care they need.
This article will show you how to enter the Medicare sales industry. Lets explore.
Is Selling Medicare Lucrative
In short, yes. The average Medicare Advantage policy pays around $287 a year in commission if the purchase replaces an existing plan. However, you can get approximately double that â $573â if you write up a new Medicare Advantage plan for someone who hasn’t had one before.
Assume for now that you primarily sell replacement policies and average $300 commission per policy. For example, if you sell 200 Medicare Advantage plans in your first year, you could earn $60,000 in Advantage commissions alone.
If you maintain that level in year two and retain 80% of your existing policyholders, your Advantage commission will increase to $100,000. That income will continue to grow annually, assuming you add new clients every year and hold on to a good percentage of your client base.
It’s easier than you might think. An estimated 10,000 people turn 65 every day. By 2050, 22% of the U.S. population will be 65 or older â up from 16.9% in 2020. That’s a lot of new customers.
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What Are Some Benefits And Incentives To Selling Medicare
Is selling medicare lucrative? How much do agents make selling Medicare plans? That depends on several factors, such as the product type, insurance carrier, etc. Here is a list of just a few of the benefits you may experience when selling Medicare products as an independent agent:
- Residual Income – When you sell a Medicare supplement or Medicare Advantage plan you will receive residual income from that sale for years to come, creating a passive income from each sale.
- Own Your Business As an independent agent commissions are paid directly to you and generally vested from day one, so you truly own your book of business and the renewals that come with it.
- Incentive Trips Many insurance companies will reward their top agents with exotic trips and vacation packages. Have you been to Italy yet?
- Additional Product Sales Whether it be annuities, life insurance or critical illness policies, Medicare products serve as a great door-opener for agents to develop a relationship with their client that will help assess their needs for additional products and coverage helping you increase client loyalty and your overall profitability.
Selling Medicare related products can be a very rewarding and lucrative career that offers the opportunity to own your own business and enjoy passive income for years into the future. If you are looking to partner with an FMO that works with independent agents, give us a call and let us explain what we do to help our agents succeed.