A Field Marketing Organization (FMO) specializing in annuities is a key player in the insurance and financial services industry, serving as an intermediary between insurance carriers or financial institutions and independent agents or financial advisors. An Annuity FMO offers critical support to agents and advisors focused on selling annuities, which are financial products designed to provide a stream of income for clients during retirement.
Here are the primary functions and roles of an Annuity FMO:
Product Expertise: Annuity FMOs provide agents and advisors with in-depth knowledge about various types of annuities, such as fixed annuities, variable annuities, and indexed annuities. This knowledge enables agents to assist clients in selecting the most suitable annuity products.
Carrier Contracts: FMOs assist agents in contracting with multiple insurance carriers or financial institutions that offer annuities. This broadens the range of annuity products agents can offer to clients.
Education and Training: Annuity FMOs offer ongoing education and training programs to ensure agents stay current with the latest annuity products, regulations, and sales techniques.
Sales Support: They often provide marketing materials, sales tools, and guidance on effective strategies for selling annuities.
Commission Management: Annuity FMOs assist agents in tracking and managing commissions, ensuring agents are fairly compensated for their sales efforts.
Compliance Assistance: FMOs help agents navigate regulatory requirements and compliance issues related to annuity sales.
Market Insights: They may provide agents with market insights, trends, and data to help them make informed decisions and adapt their sales strategies to changing market conditions.
Client Support: Some FMOs offer post-sale support to clients, helping address their questions and concerns related to their annuity contracts.
An Annuity FMO plays a crucial role in helping agents and advisors serve their clients by offering comprehensive product knowledge, compliance guidance, marketing support, and a broad range of annuity options. This support benefits both the agents and their clients by ensuring that annuity sales are conducted ethically and professionally, leading to well-informed investment decisions for those seeking retirement income solutions.
Check out our Agent Programs and Services Guide to learn more about PSM and the services we proudly offer the agents we work with.
Medicare Blog | Medicare News | Medicare Information
Why Sell Final Expense Insurance?
Final expense plans, also referred to as burial insurance or funeral insurance, are specialized life insurance policies that cater to the expenses associated with a policyholder's final arrangements.
This includes covering funeral and burial costs, medical bills, and other end-of-life expenses. These policies are typically whole life insurance with lower face values compared to traditional life insurance, making them more accessible and affordable to individuals of all ages and health conditions.
What sets final expense plans apart is the ease of qualification, as they often do not require medical exams. Instead, applicants usually need to answer a few health-related questions to determine their eligibility.
This makes final expense insurance an appealing choice for seniors or those with pre-existing health conditions. The face value of final expense policies can vary from a few thousand dollars to tens of thousands of dollars, depending on the coverage amount selected.
The primary aim of these policies is to provide policyholders with financial peace of mind, ensuring that their loved ones are not overwhelmed by the significant expenses that typically accompany end-of-life arrangements.
Additionally, final expense plans often come with a guaranteed cash value component, allowing policyholders to accumulate cash value over time that can be accessed if needed during their lifetime.
Furthermore, these policies usually have level premiums, meaning that the premium remains constant throughout the policyholder's life, providing a stable and predictable payment structure.
When agents sell final expense plans, they must approach the topic with empathy and sensitivity, recognizing the emotional nature of end-of-life planning. By offering comprehensive information and personalized assistance, agents can help individuals and their families make well-informed decisions about selecting the most suitable final expense policy that aligns with their financial needs and preferences.
Ultimately, final expense plans serve as a valuable tool in ensuring that policyholders can leave behind a lasting legacy while alleviating the financial burden on their loved ones during a difficult time.
Best Practices for Selling Final Expense Insurance?
Final expense plans, also known as burial insurance or funeral insurance, are specialized life insurance policies designed to cover the costs associated with a policyholder's final expenses, such as funeral and burial costs, medical bills, and other end-of-life expenses.
These policies are typically whole life insurance with lower face values compared to traditional life insurance, making them more affordable and accessible to individuals of varying ages and health conditions.
One of the key benefits of final expense plans is the ease of qualification, as they often do not require medical exams. Instead, applicants typically answer a few health-related questions to determine their eligibility.
This makes final expense insurance an attractive option for seniors or individuals with pre-existing health conditions. The face value of final expense policies typically ranges from a few thousand dollars to tens of thousands of dollars, depending on the coverage amount chosen.
These policies aim to provide financial peace of mind to policyholders, ensuring that their loved ones are not burdened with the substantial expenses that often accompany end-of-life arrangements.
Additionally, final expense plans often have a guaranteed cash value component, allowing policyholders to build cash value over time that can be accessed during their lifetime if needed.
Furthermore, these policies usually have level premiums, meaning the premium remains the same throughout the policyholder's life, providing a stable and predictable payment structure. When selling final expense plans, agents must approach the topic with empathy and sensitivity, recognizing the emotional nature of end-of-life planning.
By providing comprehensive information and personalized assistance, agents can help individuals and their families make informed decisions about selecting the right final expense policy to suit their financial needs and preferences.
Overall, final expense plans serve as a valuable tool in ensuring that policyholders can leave behind a lasting legacy while alleviating the financial burden on their loved ones during a difficult time.
Sample Final Expense Sales Script
As a final expense agent, having a well-crafted script can help guide your conversations with potential clients and ensure you cover all essential points.
Below is a sample script that you can use as a starting point.
Agent: Hi, [Prospect's Name]. My name is [Your Name], and I specialize in helping individuals plan for their end-of-life expenses with final expense insurance. How are you today?
Prospect: I'm doing well, thank you. Agent: That's great to hear! I'm reaching out today because I believe having financial security for your final expenses is essential for peace of mind. With your permission, I'd like to ask a few questions to better understand your needs and explore the options available to you. Is that okay? Prospect: Yes, go ahead.
Agent: Wonderful! Let's start by discussing your financial goals and any concerns you may have about planning for your end-of-life expenses. Have you considered final expense insurance before?
Prospect: I've heard about it but haven't looked into it much.
Agent: Not a problem. Final expense insurance is designed to cover the costs associated with funeral and burial expenses, medical bills, and other end-of life costs. It's a way to ensure that your loved ones are not burdened with these expenses during a difficult time. Now, may I ask, what are your thoughts on planning for these expenses?
Sample Script Explaining Final Expense Insurance:
Agent: Final expense insurance is a whole life insurance policy with lower face values, making it more affordable for individuals. It offers a guaranteed death benefit, and the premiums are typically level, meaning they stay the same throughout the life of the policy. Plus, it's easier to qualify for, as there are often no medical exams, just a few health-related questions.
Agent: We offer final expense policies with coverage amounts ranging from a few thousand dollars to tens of thousands of dollars. The coverage amount you choose will depend on your specific needs and the expenses you want to cover.
Customizing the Policy:
Agent: I want to ensure we find the best solution for you. By understanding your financial situation and end-of-life wishes, we can tailor the policy to meet your needs and budget. May I ask, what coverage amount would you be comfortable with?
Prospect: I think covering [specific expense] and having some extra for my family would be ideal. Agent: That's a wise decision. I can certainly help you with that. Let's explore some policy options that align with your preferences.
Agent: Do you have any concerns or questions about final expense insurance that I can address for you?
Prospect: How do the premiums work, and can I access the cash value if needed? Agent: Great questions! With final expense insurance, the premiums are typically level, meaning they won't increase as you get older. As for the cash value, certain policies do build cash value over time, and you can access it if needed during your lifetime. I'll make sure to present policies that offer these features.
Agent: Based on our conversation, I recommend a policy with [specific coverage amount] and [additional features, if applicable]. This policy will provide you with the coverage you need while keeping the premium affordable. What do you think about this option?
Agent: If you're ready to move forward, I can assist you with the application process, answer any additional questions you may have, and ensure a smooth enrollment experience. We can get started right away.
Agent: [Prospect's Name], my goal is to provide you with peace of mind knowing that your final expenses are taken care of. When you're ready, we can proceed with the application or schedule another call to address any remaining concerns. It's essential to take the time you need to make an informed decision.
Prospect: I'll think about it and let you know.
Agent: Absolutely. Take all the time you need. Feel free to reach out whenever you're ready, and I'll be here to assist you. Thank you for your time today, [Prospect's Name]. Have a wonderful day!
When crafting your script for selling final expense insurance, it's important to remember that every agent has their own unique style and approach. While it's essential to tailor the script to your personal preferences, there are a few key elements that should always be present.
First and foremost, empathy and understanding should be at the forefront of every conversation. End-of-life planning is an emotional and sensitive topic, and acknowledging this with compassion can go a long way in building trust with your clients.
By showing genuine care and concern, you create a safe space for individuals to share their concerns, and also build trust
In addition to empathy, it's crucial to prioritize your clients' best interests. As an agent, your role is to provide them with all the necessary information and guidance to make well-informed decisions about final expense insurance.
This means taking the time to understand their unique financial situation, end-of-life wishes, and any concerns they may have. By tailoring the policy to meet their specific needs and budget, you can ensure that they are getting the most suitable coverage.
Equipping your clients with the necessary information is also a key aspect of your role. Explaining the features and benefits of final expense insurance in a clear and concise manner can help them understand the value it provides.
This includes discussing the ease of qualification, the coverage options available, and any additional features such as guaranteed cash value or level premiums. By presenting these details in an easy-to-understand way, you reduce friction, and empower your clients to make educated decisions about their final expense insurance.
Ultimately, the goal of your script should be to build trust, provide valuable information, and assist your clients in making the best choice for their needs. By maintaining empathy and understanding, prioritizing their best interests, and equipping them with the necessary information, you can ensure that your conversations are productive and beneficial for both parties involved.
Download PDF of the guide and incorporate the proven script into your business today!
Start selling AdvantageGuard today!
Your client's new option for help covering Medicare Advantage plan copays
Clients can choose the benefits that best fit their needs and budget, all backed by a insurer with an "A+" AM Best rating2. AdvantageGuard offers convenient cash benefits paid to the insured, making it a smart choice for clients who want help with covering out-of-pocket expenses, like their Medicare Advantage plan copays.
Request details today and start offering this new plan to your clients. Precision Senior Marketing is an independent broker agency offering plans underwritten by Golden Rule Insurance Company and other insurers.
212-month Commission Advance is only available through YourFMO.com, LLC. contract
3Payable per day (limits apply) when Insured Person receives a prescription delivered by injection in an outpatient provider setting.
4Ratings as of 12/09/2022. This worldwide, independent organization reviews insurance companies and other businesses and publishes opinions about them. This rating is an indication of financial strength and stability. For the latest rating, access www.ambest.com.
Agents Only. Not Intended For Consumer Use.
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A Field Marketing Organization (FMO) in the context of Medicare serves as an intermediary between insurance carriers and insurance agents or brokers specializing in Medicare insurance products. The primary focus of a Medicare FMO is to support and assist agents in selling Medicare-related insurance plans, which include Medicare Advantage (Part C) plans, Medicare Prescription Drug Plans (Part D), and Medicare Supplement (Medigap) plans.
Here are the key functions and roles of a Medicare FMO:
In essence, a Medicare FMO serves as a valuable resource and support system for insurance agents, allowing them to serve clients more effectively and provide the information and services required to make informed choices regarding Medicare plans. It benefits both agents and beneficiaries by ensuring a smoother and more informed enrollment process.
With approximately 10,000 individuals in the United States becoming eligible for Medicare each day, finding the right Field Marketing Organization (FMO) to partner with is crucial for achieving success. PSM goes above and beyond to empower independent agents, agencies, and brokers by offering unparalleled insurance products, exceptional back-office support, and a wealth of valuable tools and resources.
Check out our Agent Programs and Services Guide to learn more about PSM and the services we proudly offer the agents we work with.
Looking for pre-approved Medicare Flyers you can customize with your personal information? Well look no further! PSM offers an array of promotional materials to help you stand out in the Medicare market.
We hope you enjoyed our latest edition of Marketing Masterminds. In this session, Bobby and Brian walked us through their sales process and shared tips on overcoming objections. Thank you again to our all-star team of panelists!
If you couldn’t make it, you can watch the recorded the session by clicking the video below. You can also download Bobby and Brian’s sales process presentation.
Wellabe is excited to announce that we are expanding our guaranteed issue period on our Hospital Indemnity insurance product. Starting Nov. 1, 2023, applicants between the ages of 60 and 79 at the time the application is signed will be guaranteed issue.
We are in a people helping people business, and our entire team is dedicated to always being here for our customers. That’s actually where the name Wellabe comes from – the phrase “we’ll always be.” We’ll always be here for our customers, fulfilling our promises and helping them be well. Even 90-plus years later, we are still caring for our customers, pushing boundaries, embracing growth, and transforming our organization.
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On October 12, 2023, the Centers for Medicare & Medicaid Services (CMS) released the 2024 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs, and the 2024 Medicare Part D income-related monthly adjustment amounts. Link below along with the 2024 breakdown.
Staying compliant during the Annual Enrollment Period (AEP) for Medicare sales is not only crucial for the reputation and integrity of your business but also for the well-being of Medicare beneficiaries.
Agents must ensure that all interactions with beneficiaries, from initial contact to the final enrollment, are transparent, ethical, and in full accordance with Medicare rules and regulations. This includes the proper use of the Scope of Appointment (SOA) process, which grants beneficiaries control over the topics discussed during meetings, preventing aggressive sales tactics.
It also involves providing accurate information about plan options, costs, and coverage, as well as respecting the Annual Enrollment Period deadlines. Compliance not only keeps you in good standing with regulators but, more importantly, it fosters trust with your clients, ensuring they receive the best possible guidance for their healthcare needs.
LeadStar Marketplace is a self-serve platform that allows agents to acquire new customers at scale.
Mutual of Omaha and Wellcare have formed a strategic alliance to offer jointly designed Medicare Advantage plans in select markets for the 2024 plan year. They are excited to offer this meaningful addition to their portfolio of senior health solutions designed to meet customers' individual needs.
To learn more, including where plans will be available, please request details today and one of our marketing representatives would be happy to share the information.
As a customer-focused company, Mutual of Omaha is committed to offering a comprehensive suite of senior health products. Medicare Advantage plans offered with Wellcare are a meaningful addition to our portfolio of senior health solutions designed to meet customers' individual needs.
For Agent Use Only. Not to be shared with Medicare beneficiaries
A trusted brand among seniors with 95% brand awareness, Mutual of Omaha is the nation's second-largest provider of Medicare Supplement plans. Our company remains committed to the Medicare Supplement market and plan to continue to grow in this space. Our senior health solutions portfolio also includes prescription drug (Part D), dental and vision coverages.
Wellcare and Mutual of Omaha will offer No Premium and Low Premium MAPD PPO cobranded plans in Georgia, Missouri, South Carolina, and Washington state as well as in Dallas/Fort Worth and Houston markets in Texas. The jointly marketed plans will be offered during this fall's Medicare Annual Enrollment Period (AEP) which begins Oct. 15 and runs through Dec. 7th.
The customer experience, including customer service, enrollment, and member communications, will be the Wellcare experience. All sales and brokerage operations will be handled by Wellcare. All 2024 contracted and certified Wellcare brokers will automatically have access to the co-branded plans with the same compensation model.
We are excited to offer this new opportunity to you and your clients. Be on the lookout for more information as we showcase the plans and the opportunities in each market.
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The 2024 Annual Enrollment Period (AEP) for Medicare is right around the corner, and hopefully you have already geared up for this critical period. With the AEP fast approaching, it's essential to be well-prepared to assist Medicare beneficiaries in making informed choices about their healthcare coverage.
As trusted advisors, you play a pivotal role in guiding individuals through the maze of Medicare options, helping them find the plans that best meet their unique needs and preferences. This upcoming AEP offers the opportunity to make a real difference in the lives of your clients by ensuring they have access to the healthcare services that matter most to them.
So, let's make sure you are equipped with the latest updates, plan options, and knowledge to empower your prospects to make confident decisions during the 2024 Medicare AEP. Together, we can navigate this enrollment period successfully and provide invaluable assistance to those relying on our expertise.
Conquer Cognitive Bias and Supercharge Your Sales
If you're a Medicare supplement insurance agent, you know that your job isn't just about selling policies; it's about connecting with people on a personal level. And that's where cognitive biases come into play.
A Cognitive Bias can either help strengthen your bond with clients or create unexpected roadblocks. They have the potential to be your best friend or your worst enemy in the world of relationship-based sales.
In this article we’ll help you navigate the twists and turns of cognitive biases successfully. We'll take you through these quirks of the human mind, from Anchoring Bias to Action Bias, and provide you with the insights you need to not just serve your clients but genuinely understand them.
In a consultative role, where it's all about trust and lasting connections, grasping and mastering cognitive biases is your super power.
Understanding these biases will be your key to building trust, nurturing relationships, and ultimately, winning at the game of sales.
Ambiguity Bias is a cognitive bias that influences people to favor known information over ambiguous or uncertain information when making decisions. In the context of sales, this bias can significantly impact a salesperson's ability to close deals because customers often encounter unfamiliar products, services, or solutions.
When faced with ambiguity, individuals tend to cling to what they already know, making it challenging to convince them to try something new or different.
Overcoming Ambiguity Bias:
To overcome Ambiguity Bias, it's essential to simplify complex information, provide concrete evidence, and build trust with your customers.
Use clear and straightforward language to explain your product or service, offer evidence such as testimonials or case studies, and establish rapport to make customers more comfortable with considering new options.
By addressing uncertainty head-on and providing clarity and assurance, you can increase your chances of successfully closing deals.
Story Bias, also known as narrative bias, is a cognitive bias where individuals tend to favor information presented in the form of a compelling story over data or facts presented in a dry, statistical manner.
In sales, this bias is important to understand, and use to your advantage, because potential customers may be more influenced by the emotional appeal and relatability of a story than by the raw data or features of a product or service.
Using Story Bias:
To use Story Bias, blend storytelling with facts and figures effectively. Craft narratives that highlight real-world applications and success stories involving your product or service, preferably using testimonials from clients.
Ensure that these stories resonate with your target audience and address their pain points and aspirations. However, back your narratives with concrete data, statistics, or evidence to demonstrate the tangible benefits and value of your offering.
Ask current clients to share honest reviews and share positive reviews and stories about how you helped them. By striking a balance between storytelling and factual information, you can engage customers emotionally while providing them with the rational justification they may need to make a confident purchasing decision.
The Humor Effect:
The Humor Effect is a cognitive bias that taps into the power of emotions to enhance the impact of information. Humor, being one of our most potent and accessible emotions, can be a valuable tool in sales.
By strategically incorporating humor into your sales pitch, you can effectively engage potential customers, making your message more memorable and enjoyable.
Using the Humor Effect:
To make use of the Humor Effect in sales, use humor thoughtfully and in a way that resonates with your audience. Ensure that your humor is relatable, relevant, and enhances your sales message.
Pay attention to timing and maintain professionalism throughout your interactions. When humor is used effectively, it can create a positive and memorable experience for potential customers, making them more receptive to your sales pitch.
Confirmation Bias is a cognitive bias where individuals tend to seek, interpret, and remember information in a way that confirms their preexisting beliefs or opinions while ignoring or downplaying contradictory evidence.
In sales, this bias can pose a challenge because potential customers may have preconceived notions about a product or service, and they may actively seek out information that supports their existing views, making it harder to change their minds.
Overcoming Confirmation Bias:
To overcome Confirmation Bias, it's essential to approach potential customers with empathy and a deep understanding of their existing beliefs and preferences. Start by actively listening to their concerns, needs, and objections. Acknowledge their viewpoints without immediately challenging them.
Next, present evidence and information that is both accurate and aligned with the customer's existing beliefs. Gradually introduce new information that gently challenges their preconceptions while emphasizing the benefits and advantages of your product or service. Use relatable stories or case studies that demonstrate how others with similar beliefs have benefited from your offering.
Encourage open dialogue and ask probing questions to guide customers toward considering alternative viewpoints. Be patient and respectful, avoiding confrontational or argumentative tactics. By gradually building trust and credibility, you can help potential customers overcome Confirmation Bias and become more receptive to the value your product or service offers.
Action Bias is a cognitive bias that predisposes individuals to favor taking action, even when inaction might be the more prudent choice.
In sales, this bias can manifest when potential customers feel compelled to make a quick decision, often due to external pressure or a sense of urgency. This can lead to impulsive purchasing decisions that may not align with the customer's best interests.
Overcoming Action Bias:
To address Action Bias in sales, it's crucial to strike a balance between encouraging action and ensuring that customers make well-informed decisions.
Start by clearly communicating the benefits and value of your product or service. Help customers understand that taking the time to evaluate their options can lead to a more satisfying and cost-effective choice in the long run.
Offer information on different options, pricing plans, and potential alternatives without overwhelming the customer. Present a compelling case for why your offering is a good fit, but avoid using high-pressure tactics. Instead, focus on building trust and providing comprehensive support to address any concerns or questions the customer may have.
Encourage customers to take the time they need to make a decision that aligns with their goals and needs. By respecting their decision-making process and promoting a sense of control, you can help them overcome the tendency for hasty action and make more thoughtful, satisfying purchases.
So, there you have it—cognitive biases, those little quirks in our thinking, are pretty influential in the world of consultative sales.
Remember, it's not just about selling policies; it's about connecting with people. These biases can either help or hinder that connection. Armed with this knowledge, you've got a better shot at turning them to your advantage.
Use this understanding to be more than just a salesperson; be a trusted advisor. Help your clients make informed decisions about their Medicare supplement plans and build relationships that last. It's not just about what you get; it's about the impact you can make in their lives.
Cheers to your success!
Tags: Sales Strategies
Cigna Healthcare will start paying commissions on Medicare Prescription Drug Plans (PDP) starting in AEP 2024!
Here are some of the items covered in the Cigna PDP AEP Kick-Off presentation:
The assessment form allows insurance agents to gather comprehensive information about the client. This information is crucial for guiding clients towards the most suitable plans. With a clear understanding of the client's needs, agents can recommend plans that align with the client's health requirements and preferences. This ensures that clients enroll in plans that cover their specific healthcare services and medications.
Want a custom version with your info and logo? Inquire with your Marketing Representative today and we would be happy to accommodate!
Step 1 - Collecting information through a CNA for all your clients is the optimal method to guarantee your ability to offer coverage options and plan selections that align with their present circumstances.
Step 2 - Engage in the CNA process to gain insights (or refresh your understanding) into your client's Medicare eligibility, existing coverage, and their primary concerns regarding their healthcare coverage.
Step 3 - Utilize the details gathered from the CNA, along with your discussion, to introduce potential plan choices that align with their particular requirements.
By analyzing the assessment form, insurance agents can identify potential coverage gaps in a client's current or desired plan. This allows agents to suggest supplemental plans to fill those gaps. By involving clients in the assessment process, insurance agents educate them about different coverage options, and potential out-of-pocket costs. This empowers clients to make informed decisions about their healthcare.
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With the annual enrollment period in full swing, we felt this was a great time to review common causes that lead to a CTM filing. Although there are many reasons a beneficiary would file a CTM, more often than not, during AEP, these complaints stem from an agent:
• Not building a rapport with the client
Respond To Your Client's Needs
Be Comfortable With Negative Feedback
Above all, maintaining ethical sales practices is the cornerstone of Medicare Advantage sales. Always act in the best interest of beneficiaries, providing unbiased information and recommending plans that suit their unique needs. By following these compliance guidelines, you contribute to a positive experience for both beneficiaries and the industry as a whole.
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