American Rescue Act Subsidies and Living Benefits

Kyle Henry
  • Since January 1st, 2021, the American Rescue Act has been in effect.
  • ‘What does the ARA enhanced subsidies mean for your clients and you?’
  • Well, let us just say that it is a win-win for both sides of the fence.
  • I am going to give you a couple of “case studies” if you will, from my personal sales.

Case #1
Abigail was on a short-term medical plan. She was making around $85,000 per year and has three dependents. Before the ARA – she was not getting enough of a subsidy to make a difference. Which lead her to signing up for a STM plan. The year goes by, and as we all know the ARA was passed and effectuated. She called me (as most customers have and will) because word of mouth travels fast and she wanted to know if she and her family were now eligible for a larger subsidy. I told her I would run the quotes and get back to her ASAP. When I ran the numbers, I noticed she qualified for a zero-dollar bronze plan via Florida Blue – the 2119 plan to be exact – and it made perfect sense to include Living Benefits with the total package. She was paying $500+ prior to ARA, why not include Life with Living Benefits having saved all that money? I called her back and said “Hey Abigail – Good news! I can get you a Florida Blue plan AND $500k in Living Benefits with income protection for only $63 per month!”

See what I did there? She was incredibly happy to hear the total price, and we set an appointment for the next day. The appointment came, and I said, “So I quoted you $63, but I should let you know that you have a few different options before we enroll you as far as the Living Benefits go”. Abigail concurred.

For some reference, I am quoting American National.

Next, I told her the 30-year term policy was $93, and the Guaranteed Universal Life to age 95 was only $255. That also includes return-of-premium at the 15th, 20th, and 25th year of the policy. What a great deal, right? She agreed it was a no-brainer and as simply as that all sounds it was sold – and approved within 3 days. This is what we all need to be pitching to our customers. This client ended up opting for $750k after she was approved preferred plus on the $500k. Premium stayed the same for an extra $250k. 

Case #2
The very next day, I had a referral call me. Paul works as a manager for a restaurant and lives with his fiancé and two children. Since he is not married, claims the kids on his taxes and his income is only $30k on paper – he was able to get a decent subsidy. So decent in fact, his premium came out to only $1.50 per month for a Florida Blue silver plan. So, doing what I do best, I quoted him after our call and called him back the next day. “Paul, how are ya?! Well, I have some good news – you can get a Florida Blue silver plan with Living Benefits income protection for only $50 per month!” and per usual, he was ecstatic. I explained to him that the Living Benefit’s premium will be a level rate for the entire 20-year term. It is important to explain this to customers as most people do not know that.

I actually had two more sales similar to these in the same week, but I don’t want to bore you – that’s how simple this is. So simple its boring. But not when the commission is paid! Get out there and attach Living Benefits to every ACA sale!

Any questions on requirements and certifications please ask your manager or contact sales support in the home office. (772)546 – 2299

More Blog Posts

Why selling USAble & Florida Blue Dental to all your potential and current clients is a MUST

Many ACA customers live 'paycheck to paycheck,' which is 80% of Americans. However, this does not mean they cannot afford anything. It means they budget their money in a weekly manner. We mustn't assume what a person can afford but instead make our recommendation...

Maximize your Opportunities

Agents are always looking for opportunities to increase their income. Often the solutions are right in front of us and because of that we miss them all together. The hardest part of our job is finding a prospect! Once we make a sale so many believe that the...

Medicare Update

As OEP came to an end, I want to take a moment to thank each and every one of you for your hard work over the past 6 months!  I know how busy these times can be while also maintaining a work life balance, and we thank you for helping us drive our mission at FB...

The SMART Way

Statistically, death is 100%. That’s no Joke.  Funerals could cost upwards of $20,000. That does not even include transportation. So, if anyone dies out of state, the average cost of transportation is $10,000, and the country’s average cost is $20,000. Add that to the...

Are You Marketing?

I read once a long time ago that you only get one chance to make a good impression. There is a lot of truth in that statement. Just think about the first time you met your significant other. You had your best smile on, and hopefully best dressed while at the same time...

Our Business is the Best – We Help People – STOP Selling on Price over Needs

When I formed Compass Health in 2007 – one of the core tenants was to select the Best Companies & Products to the individual under age 65 market.  Of course – since then – we have broadened the markets we serve to include the Senior and Specialty markets (Smart...

Marketing Technology of the Future Today

Business cards have been a stable in marketing since they were first used in China in the 15th Century. Back then they were called “Visiting Cards” and they were used by the Noble and Wealthy families as a promotion tool or to show they had stopped for a visit. In...

Democratic senators ask Biden administration to limit “junk health plans” that are not ACA-compliant

"Junk plans are leaving Americans with these tremendously expensive bills," says Xavier Becerra, secretary of Health and Human Services.By Alan GoforthAffordable Healthcare Ahead.Jim Vallee/Adobe Stock More than two dozen Democratic senators this week asked the Biden...

Meet Steve Ramsey our New Group Sales Director

I am pleased to introduce myself to the Compass Health Agent Team and look forward to meeting and working with everyone. Our President, Bruce Henry, asked me to write a brief Bio so you all understand my background.I was born and raised in Kentucky and now live in...

New Possibilities

So many people make New Year's resolutions to only found out later that they did not accomplish their New Year Goal. Our Society has basically brainwashed people into thinking that somehow magically you will lose weight, make more sales, buy a bigger house take that...

Call For a Free Quote