Ancillary Insurance and Worksite Plans
Ancillary insurance and worksite plans are supplemental insurance products that provide additional coverage beyond what standard health insurance plans offer. These plans are designed to fill gaps in coverage and provide comprehensive protection against various health-related expenses¹.
Types of Ancillary Insurance Plans
Hospital Indemnity Insurance
- Purpose: Covers additional expenses during an extended hospital stay.
- Coverage: Pays a fixed amount per day or per medical service.
- Pros: Helps cover out-of-pocket costs not covered by primary insurance.
- Cons: Limited to hospital-related expenses.
Accidental Expense Insurance
- Purpose: Covers high out-of-pocket medical bills following an accident.
- Coverage: Pays for medical expenses resulting from accidents.
- Pros: Affordable, provides financial relief during accidents.
- Cons: Only covers accident-related expenses.
Critical Illness Insurance
- Purpose: Provides additional coverage for serious medical emergencies like heart attacks, strokes, or cancer.
- Coverage: Pays out cash to cover medical costs not covered by traditional insurance.
- Pros: Financial support during critical illnesses.
- Cons: Limited to specific critical illnesses.
Dental Insurance
- Purpose: Covers dental care expenses.
- Coverage: Includes routine check-ups, cleanings, fillings, and more.
- Pros: Helps manage dental care costs.
- Cons: May have waiting periods for certain procedures.
Vision Insurance
- Purpose: Covers vision care expenses.
- Coverage: Includes eye exams, glasses, contact lenses, and more.
- Pros: Helps manage vision care costs.
- Cons: Limited to vision-related expenses.
Comparison Between Ancillary Insurance Plans
| Type of Insurance | Coverage Length | Coverage Scope | Premiums | Death Benefit |
|---|---|---|---|---|
| Hospital Indemnity | Varies | Hospital-related | Lower | Fixed amount per day/service |
| Accidental Expense | Varies | Accident-related | Lower | Covers accident expenses |
| Critical Illness | Varies | Specific illnesses | Higher | Cash payout |
| Dental Insurance | Annual | Dental care | Lower | Routine and major dental care |
| Vision Insurance | Annual | Vision care | Lower | Eye exams, glasses, contacts |
Requirements for Selling Ancillary Insurance
To sell ancillary insurance, you need to:
- Complete Prelicensing Education: Most states require prelicensing education before you can take the Life and Health exam.
- Pass the Life and Health Insurance Exam: This is necessary to get licensed.
- Obtain a License: You need a valid health insurance license from your state.
- Complete Continuing Education: Required to maintain your license.
Compliance for Selling Ancillary Insurance
Compliance involves adhering to guidelines set by regulatory bodies:
- Advertising Guidelines: Follow advertising and marketing guidelines to ensure truthful and non-misleading information.
- Licensing Requirements: Maintain proper licensing and certifications.
- Ethical Conduct: Conduct business in a fair, honest, and ethical manner.
Contracting to Sell Ancillary Insurance
To sell ancillary insurance, you must:
01
Secure Appointments with Insurance Carriers
Complete independent agent agreements or contracts.
02
Submit a Contracting Requestest
MyContractingteam can assist you with contracting and appointments. Insurance companies require an agent to complete contracting to access contracts.
Sales Process for Ancillary Insurance
The sales process typically involves:
01
Prospecting
Identify potential clients through various methods. .
02
Needs Analysis
Conduct a comprehensive needs analysis to understand the client's requirements.
03
Presentation
Present suitable ancillary insurance options to the client.
04
Handling Objections
Address any objections or concerns the client may have.
05
Closing the Sale
Finalize the sale and complete the necessary paperwork.
06
Policy Delivery
Deliver the policy and ensure the client understands the coverage.
07
Follow-Up
Maintain ongoing communication with the client for future needs.
Selling ancillary insurance involves a combination of education, compliance, contracting, and a structured sales process. If you have any specific questions or need further details, feel free to ask!
