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

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