Don’t Junk That Lead!

By Scott Sullivan

When the state you’re licensed in isn’t Guaranteed Issue, you know who can and can’t be underwritten for legitimate reasons.

But that doesn’t mean you should scrap a lead that doesn’t meet your companies’ criteria without calling them first.

Here are 2 good reasons to check in with your lead before returning it:

1. They may have entered their information incorrectly.

A lead comes in that lists the age as 73, but also says they’re not on any medications and have no pre-existing conditions.

There are two reasons why this lead demands a quick phone call before you dismiss it as uninsurable. First, how many 70-year olds do you know that can claim to be medication-free with no existing conditions?

Second, the older senior citizens are, the less likely they are to have ever gone online. Seniors 75 and older only make up 1.3 – 1.6% of all internet users.

And just 4% of all seniors 65 and up have looked up health insurance information online (Kaiser Family Foundation, 2005).

Call up your lead and verify their age. Mistakes can happen! You don’t want to junk a lead that’s actually a healthy 37-year old who mistyped their date of birth. Statistically, there aren’t a lot of people over 70 online…and even less are requesting health insurance quotes. 

The same goes for height and weight. A lead may appear to have an un-ratable build, but they could easily have ticked off the wrong number by mistake.

2. They may be HIPAA eligible.

In some cases a lead is eligible for coverage, even if their medical conditions or build would normally make them uninsurable.

You can quickly determine if someone is HIPAA eligible and has guaranteed access to health insurance under the law. Find out if they meet the following conditions:

  • The person has had at least 18 months of continuous coverage without any breaks longer than 63 days
  • They got their most recent coverage through a group, governmental or church plan
  • Their most recent health coverage wasn’t cancelled because they failed to pay their premium, or due to fraud
  • They were offered and accepted COBRA or state continuation coverage and the coverage has been exhausted

An applicant may not fall under HIPAA if they:

  • Can get coverage under another group plan
  • Qualify for Medicare Part A or B
  • They had a break in coverage greater than 63 days

Important: HIPAA eligibility for individual plans varies from state to state, so check with yours.

Sometimes leads check off that they’re currently insured. Remember, they could actually have COBRA coverage that’s about to expire and they’re looking to replace it.

If you’re too quick to toss leads in the trash you could be missing out on sales.  You’ll never know if you don’t call. 

About the Author: Scott Sullivan is Vice President of Broker Sales at Norvax, where he uses his 4 years of industry experience and impressive knowledge of how insurance agents sell to forge strong relationships with successful agencies and insurance carriers nationwide. His team works with agents across the country and educates them on how to implement technology and lead generation into their daily routines. He welcomes feedback at ssullivan@norvax.com

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