How to Sell Hospital Indemnity Plans & Combat Health Care Costs

It’s not hard to believe that, today, a hospitalization can be expensive. But, did you know that, in just one week, your client’s hospital bill could add up to more than $10,000?

For the average American, medical debt can ruin the chance to save money, and it can even negatively impact the future. Two-thirds of people who file for bankruptcy cite medical issues as a key contributor to their financial downfall.

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The fact is your clients could have a hospitalization at some point in the future. As their insurance agent, what can you do to protect your clients from high out-of-pocket costs related to their health care?

Connect with Current Clients for Hospital Indemnity Cross-Sales

It might be time to catch up with your existing clients to see if they are happy with their current coverage. It’s always a good idea to see if they want to make any changes, have questions, or could benefit from the addition of an ancillary plan. If you’re still building up your book of business, hospital indemnity plans and additional plan riders are a great way to get more sales.

Pro tip: Prepare questions that can lead the conversation into the opportunity to provide your client with options to fill any gaps in their coverage.

As you’re reviewing your book, make note of which of your current clients have Medicare Advantage plans. MA plans generally have a high out-of-pocket maximum, so explain to your client what that means when and if they have a hospital visit. Also, be sure to take a look at the MA plan’s specific copays. Let your client know how a hospital indemnity plan can work with their Medicare coverage to lower their spending.

What Are Benefits of Hospital Indemnity Plans?

In relation to the MA plan copays, here’s a quick example:

Your client with a standard MA plan spends seven days in an inpatient hospital. The inpatient hospital copay is $300 a day, the ambulance ride is $250, and the emergency room visit is a daily copay of $150. These costs can easily add up to more than $2,000!

Hospital indemnity plans offer coverage for all those copays. There are no network restrictions with hospital indemnity plans, and their flexible benefits cover inpatient and observation hospital copays.

Hospital indemnity plans offer a lump sum of cash paid directly to your client.

Additionally, hospital indemnity plans offer a lump sum of cash, paid directly to your client. How your client chooses to spend that money is up to them. This ability in hospital indemnity plans is unique and liberating, especially for someone who’s still recovering from their hospital stay. The last thing they’ll want to do is battle with their insurance company about what’s covered.

Best Practices for Closing a Hospital Indemnity Sale

As you know, a good sale is built on trust and honesty. A great way to enhance these qualities in the bond you have with your clients is to book consultation appointments to gauge where they feel worried and happy with their existing coverage. By creating this type of appointment to listen to your clients, you’ll get a sense of where their coverage might be lacking. Then, you’ll have time to research a solution for them and possibly bring more sales opportunities, like a hospital indemnity sale, to the table.

Book consultation appointments to gauge where clients feel worried and happy with their existing coverage.

Hearing your clients’ personal experiences of moments where they experienced gaps in the coverage of their current insurance plan can help you introduce the idea of purchasing a hospital indemnity plan and add additional riders to the coverage as well. And remember, you don’t need the answers or to offer the solution to their problem(s) right away. First, just listen and encourage your client to talk about their own experiences. This will help you get the details you need for ancillary plan research and a great solution. Best of all, it will help make your client feel valued and build their loyalty to you.

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Hospital indemnity coverage could be something your clients need, but just don’t know it yet. Medical emergencies resulting in hospital stays can be unpredictable. Start the conversation with your clients and do your part to help them save their hard-earned money!

Ritter Insurance Marketing offers a wide selection of competitive hospital indemnity plans. Speak with your sales specialist today for more details and tips for successfully selling hospital indemnity coverage!

Please note, Ritter does not currently contract for hospital indemnity plans in New York.

Not affiliated with or endorsed by Medicare or any government agency.

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