I got a call last week from one of my good clients. They had just gotten their annual rate increase, and had some questions. Sadly, before they called me, they called another broker whom they had heard on a radio commercial. I was on vacation and had gotten back in town late in the evening on Thursday. I had an email from my client stating that they had a quote from another broker and wanted to know if I could match it.
I call them and zip over to their home. Now the broker that they talked to told them they had a lot more coverage for less money. I get there and wow what did I find. I felt like Paul Harvey telling “the rest of the story”.
First the other broker had told them that the Celtic Insurance policy that I had sold the client, only had a $100,000 per year maximum and a $1 million lifetime maximum. I am not sure where this guy got his information because first the Celtic plans prior to March of 2010 had a $5 million dollar maximum and no annual. This plan was written in August of 2010 so by federal law all lifetime limits were removed. That was the first time this guy mislead my client.
Then he shows them a plan. My client currently has a policy with a $2500 Deductible. This other guy showed them a plan with a $7500 per person deductible and he did put some good supplemental type options on there, but it was self serving. Since the health care reform law reduced broker commissions on Major Medical plans, he wanted to load it up with supplements so he could make more. What he failed to tell the client is the supplements he was adding do not cover everything. If the client were to go to a restaurant and some how get food poisoning and they all ended up in the hospital for three days, they would of had to pay ( under Mr. Radio advertising health agent) $22,500 just in deductibles before the co-insurance kicked in. Does that still sound like a good deal??
I am glad my relationship is good enough with this client that they called me. They would of had a problem down the road. After I googled this broker he had been in the business for just about two years. He is still probably learning the business, and if he is like me when I started my insurance business racking up a little debt.
Make sure you know all of the facts before purchasing an insurance policy.
Thanks for reading…
Eric Wilson is President of I Sell Health, Inc. A Chicago based insurance agency. He can be reached toll free at 888-448-5370. You can visit online at www.isellhealth.com