Trends come and go, but one trend that has been growing with increasing popularity is the purchase of discount dental plans. Enrollment in these alternative dental plans is on the rise, with enrollment of over 7.76 million consumers increasing over 20 percent from the previous year. This is the right time for you to embrace this trend and target these consumers to help sell them a product that is right for them. Here are 3 reasons you should be selling discount dental plans:
In Demand
Adults 65 and older with Medicare, along with younger consumers are driving the recent growth of discount dental programs. Can you guess which state has the highest number of enrollees? You guessed it! Florida. The Sunshine State has 1.54 million adults enrolled in discount dental plans. Following Florida is Texas with 959,000 (representing 3.5 percent of their population) and then New York, with 880,000 enrollees (4 percent of their population).
Younger consumers are drawn to the fact that this plan cost less than regular insurance and provides discounts on certain cosmetic procedures, such as teeth whitening.
Affordability is a Great Selling Point
Affordability is one of the top selling points of dental discount plans whether you’re selling to a group or an individual.
For example, if you’re selling to a self-insured group that is growing, maybe scaling back or not having the manpower to administer an insurance plan, a discount plan may be just right for them! First, they are going to pay much less for dental benefits for employees than they would for dental insurance. They don’t have to worry about paying for claims because there are none. And in terms of renewal, because there are no claims involved with this plan, spikes in utilization and claims submittal will not impact their renewal for the following year. They simply pay the set cost to purchase the plan for each employee.
For those individuals who don’t want insurance or can’t afford it, the cost of this plan will be a big draw. Faced with spending between $79.95-$199.95 annually for a discount dental plan, versus $350 a year for a PPO plan where the consumer may get a $1,000 benefit and probably has a waiting period for major services. Many will go for the discount plan, and it’s understandable when you consider that by paying less than half of that $1,000 maximum for a discount dental plan, the consumer typically has unlimited savings on dental services starting on day one! There are also no deductibles or annual maximums with a discount dental plan, which can be a barrier to some consumers.
Grow Your Business
It’s an understatement to say that commissions are important to growing your business. Plans like the dental discount programs that have no claims involved and additional carrier fees to cover the cost of administering the claims, can result in higher commissions for you!
One of the most important skills to have as a broker is to be able to offer the solutions that an individual or group needs. You can have an extensive portfolio of benefits but you need to make sure you're helping meet your client's unique needs. That’s why it’s so important to have a discount dental plan in your portfolio. The time is now to start selling and if you'd like to have an edge against the competition, start selling with Solstice! Click the image below to talk to one of our sales representative today and see how you can get ahead of this trend!
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