When you think about the financial aspects of reaching retirement age, you probably think about whether you will have ample savings and investments, and if you'll be able to afford prescription drugs and Medicare supplement insurance. If you live in a state where 32 degrees is a heat wave in January, chances are you also contemplate whether your budget will allow for spending winters in a warmer climate! One thing that undoubtedly doesn't cross your mind is the cost of caring for your pearly whites.
Even if paying for oral health care is not on your retirement radar just yet, you can bet today's rapidly growing senior population is giving it some thought. The largest generation in our nation's history started turning 65 in 2006, and each year until 2030 when the youngest of them reaches 65, the market will be flooded with thousands of retirees each day. According to U.S. Census Bureau projections, the 65- to 84-year-old population will grow faster than any other age group over the next two decades.
Not every senior will buy dental insurance, of course, but there's no denying that every one of them is likely to need dental care during their retirement years. Why not test the waters by dipping your toe into this vast pool of potential clients?
The marketplace seems to include a gaping hole where, arguably, there should be numerous, competitive dental plans for seniors.
Because such plans are relatively few does not mean they do not exisor are not in demand. Now is the time to seize the post-retirement individual dental sales opportunity that is growing along with the 65 and older crowd.
Is anyone out there?
The individual dental market's options for seniors are limited because, for most large carriers, dental plans that cover seniors are not considered lucrative or attractive enough to be worthwhile. Instead, discount plans are often marketed to seniors?not the fully insured dental plans they were familiar with in their pre-retirement years.
It is important to recognize that many senior citizens are looking for the same level of benefits that they were used to when they were working; not discount plans. They want immediate coverage and worthwhile benefits at an affordable price.
As an expert in the benefits industry, you can easily grow your overall book of business by zeroing in on the individual dental plans that extend coverage eligibility to seniors. There are competitively priced, well-designed dental plans out there that are on par with most employer plans and that stack up very favorably to better-than-average individual plans. Often, these are not senior-only plans, but the same plans sold to people of all ages with higher coinsurance percentages for preventive care and lower coinsurance percentages for pricier benefits such as crowns and root canals.
Does anyone care?
The most successful marketers know that long-term success is about building relationships by presenting solutions tailored to clients' needs. When it comes to dental sales, this can make all the difference because many seniors on fixed incomes are tempted to forego dental insurance in an effort to cut expenses. Thirty-six percent of Americans skip dental care and checkups when finances are tight?the second most common cost-cutting action of the six in 10 Americans who delayed or skipped health care in the past year, according to an April 2009 Kaiser Health Tracking Poll.
Yet as numerous studies suggest, oral health is intrinsically linked to overall health. The American Dental Association reports that advanced gum disease, known as periodontis, is associated with more serious health problems such as cardiovascular disease, stroke and bacterial pneumonia.
While dental insurance does not guarantee perfect oral health, those with dental insurance see the dentist more often and are more likely to receive preventive care. The relatively low premiums for dental insurance often help seniors save money in the long run. Through routine, preventive care, they may avoid more serious oral health issues later on. Plus, when and if major services are needed, having insurance can help take the sting out of high-cost procedures that can be financially painful to anyone, let alone someone on a retirement budget.
Are you missing an opportunity?
If selling a low-premium, low-commission product like dental, particularly to the senior population seems like a drain on your time and resources, now may be the time to change your thinking.
Senior dental coverage is highly desirable, and this population is already seeking it. You just need to let them know it's available. Contrary to what you may think, the Internet may be your key.
When it comes to individual medical and dental benefits, there are many underserved consumers in this market, and there are few solutions. Seniors are looking for information online, and if they can find you there, evidence suggests they will buy.
More than one-third of U.S. consumers born before 1945 use the Internet, and 38 percent of them are looking for health-related information, according to "Matures 62+ On the Internet: An Overlooked Audience," a 2008 Focalyst Insight Report. The report indicated that older Web surfers are just as likely as younger consumers to be motivated by Internet advertising; however, their purchase intent when looking at pharmaceuticals and insurance is greater than younger consumers.
Online quoting and enrollment tools make your job as an agent even easier when selling individual dental plans to seniors. These tools offer an economically friendly way to bring the product to the market. Consumers enjoy being able to quickly and conveniently compare plans and ultimately purchase one in the comfort of their home. Because dental benefits are not terribly complex, selling them online can actually save you money while bringing in new business.
As we start a new decade, now is the perfect time to enter a market that, in many ways, is very much in its infancy. Are you ready?
Roger W. Skinner is senior vice president, dental plans, for IHC Health Solutions, a member of the IHC Group an insurance organization composed of Independence Holding Co. and its subsidiaries.
