Tackling Uninsurables With An Unbeatable Offer: Discount Health Cards

How often do you get a person on the phone who is extremely interested in insurance, only to find they’ve been rejected by every major insurer — or would be, if they applied?

At this point, many agents politely hang up the phone, frustrated by the waste of time. And that’s the mistake. Sure, they’re a rotten prospect for an individual medical plan…but they’re an excellent candidate for discount health cards.

If you haven’t heard of them, discount health cards (or plans or programs) are NOT insurance products. They‘re consumer discount clubs offering your clients savings on selected health expenses from a participating network of providers.

Discount health cards are marketed to:

Uninsurables who can’t afford high-risk plans. With few eligibility restrictions, just about anyone under the age of 70 qualifies for a discount card.
Individuals with plans (especially high deductibles) that have gaps to be filled.
Employers who want to offer health discounts to employees but can’t afford traditional coverage.
Anyone who’s exhausted all other options.

With savings of up to 50% (or more) on prescriptions, dental, vision, doctor and hospital charges, discount cards are an attractive offer to people with limited options.

What’s in it for you:

Compensation. Transform “junk” leads into commissions. According to one discount card provider, most compensation programs deliver on average over $200,000 per 1,000 cards (at the highest benefit level) sold.
Low maintenance. Once you’ve sold the card, you’ll have very little service to perform for a higher return on investment.
Easy to add to your portfolio. Discount cards are a straightforward product that you can pick up quickly.

Better-Than-Nothing Coverage

The discount heath card industry has been plagued by deceptive marketing tactics and fraudulent practices. Enough people have been duped into thinking they’re purchasing real insurance to get consumer groups and attorneys general across the country clamoring for reform. That doesn’t mean there aren’t reputable, reliable discount card providers — just that you should add this product to your portfolio with a little caution.

Discount cards don’t cover major medical expenses. They’re best suited for people with absolutely no other options. If you’re clear in your sales pitch and stick to selling the product to this market, you’ll maintain a satisfied base of discount card clients.

Keep these rules in mind:

Your discount card product is the last item you turn to when closing a sale on someone who’s uninsurable.

Be extremely clear about the nature of the product. Discount health cards are easily and frequently mistaken for insurance. Make sure your client truly understands its features and limitations.

Find reputable discount card providers. Call up your company reps to discuss any discount plans they may already offer. Ask them for suggestions of reputable providers. Your best bet is to find a provider that is associated with a healthy PPO program. Your clients can expect the most discount, and reliable service from these providers.

With a discount health card product in hand, you can transform those dead-end conversations with uninsurables into an opportunity for commissions.

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