Most seniors live on a fixed budget, so unexpected expenses can be a financial disaster. Insurance provides protection and peace of mind. By helping retirees secure the insurance they need, you can help them safeguard their finances without sacrificing their health.
Medicare Insurance
When you think about the insurance needs of retirees, you probably think about Medicare, and for good reason. More than 60 million U.S. seniors rely on Medicare for health insurance, making Medicare insurance extremely important for the health and financial wellness of retirees.
It’s also complicated. Many retirees need help navigating their Medicare options, which include:
- Original Medicare. Original Medicare, also called Traditional Medicare, is the federal health insurance program that consists of Medicare Part A (hospital coverage) and Medicare Part B (medical coverage). It operates on a fee-for-service basis with no provider networks.
- Medicare Part D. Medicare Part D plans provide prescription drug coverage, which is not included in Original Medicare. These are private plans, and the costs and coverage vary.
- Medigap. Medigap, also called Medicare Supplement Insurance plans, are designed to work with Original Medicare. Medigap plans are sold by private insurers, but the plan options are standardized. Medicare enrollees can purchase a Medigap plan to help with out-of-pocket expenses, making it easier to predict costs and budget accordingly.
- Medicare Advantage. Medicare Advantage, also called Medicare Part C, is an alternative to Original Medicare. This is an all-in-one plan that combines the coverage available under Medicare Parts A and B. Most plans also provide prescription drug coverage, and many plans provide additional benefits as well. Medicare Advantage plans are sold by private insurance companies, and the costs, coverage, and networks vary.
Seniors age into Medicare when they turn 65. Every year, Medicare enrollees have the opportunity to enroll in a new Medicare Advantage or Medicare Part D plan during the Medicare Annual Election Period that runs from October 15 to December 7. Retirees may also have access to other Special Enrollment Periods.
Ancillary Health Insurance Products
Some retirees may want additional health insurance products to fill in the gaps left by Medicare. Common plans include:
- Dental, Vision, and Hearing. Original Medicare does not typically cover dental, vision, or hearing care. Some Medicare Advantage plans provide these benefits, but coverage varies. Retirees without access to coverage through Mediare or other sources may want standalone coverage.
- Hospital Indemnity, Critical Illness or Cancer Insurance. A major health event can involve significant expenses that Medicare insurance doesn’t cover. Hospital indemnity insurance pays a cash benefit if the insured is hospitalized, while critical illness and cancer insurance typically pay a lump sum benefit if the insured receives a covered diagnosis.
Life Insurance
There are many different types of life insurance, and some of them meet the needs of retirees. Some policy types that retirees might want to consider include:
- Hybrid Life Insurance. Hybrid life insurance is a type of permanent life insurance policy that offers long-term care benefits in addition to the death benefit normally associated with life insurance.
- Final Expense Insurance. Final expense insurance is a type of whole life insurance that provides a modest benefit meant to cover the insured’s final expenses, such as burial costs and funeral arrangements.
Annuities
Annuities are contracts offered by insurance companies designed to provide payouts. Annuities have become popular with retirees who are looking for a steady stream of retirement income. There are different types of annuities with varying terms, fees, and structures, including:
- Fixed Annuities. Fixed annuities use a fixed interest rate, so the annuity holder knows how much they will receive.
- Variable Annuities. Variable annuities use a variable interest rate tied to the market, so they come with a potential for growth but also the risk of loss.
Cross-Selling Compliantly
By offering a well-rounded portfolio of insurance products, insurance agents can meet the diverse needs of retirees while earning commissions. However, compliance is key!
CMS has strict marketing rules, so agents who sell Medicare insurance must be careful about how they approach cross-selling. For example, you can’t just pitch whatever products you want during a Medicare sales meeting. You have to stick to your Scope of Appointment, and you can’t discuss non-health products during a Medicare sales meeting. Review the current Medicare Marketing Guidelines before you start selling.
Are You Meeting the Insurance Needs of Retirees?
Whether you’re just thinking about starting an insurance career or you’re ready to expand your portfolio, PTT Financial is here for you. See how PTT can support your insurance career.