Last month, I put the Microsoft plan under a microscope and pulled out some of the key items a plan advisor or broker can glean from their form 5500 filing. One of the most important items was the policy renewal date.
You can call a potential prospect at any time of year to get on their radar, but the best time to get in touch is when they're already thinking about renewing their existing contract. That's when you can start implanting doubts as to whether their current benefits provider is the best one suited to their needs.
The bulk of this action takes place in December, when 61 percent of all health policies were up for grabs in 2009. That's why, among other reasons, Autumn is generally considered the "busy season." Oddly, November is the lowest volume month for renewals, representing only 1 percent.
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More than half of all contracts might be up on New Year's Eve, but a sizeable chunk of the business, and indeed, 49 percent of the actual commission dollars, are on the table the rest of the year.
In fact, the average commission on a June policy is 1.6 times what that of one that renews in December. If anyone has any theories as to why that is, I'd love to hear them.
The bottom line is, use the 5500. Do your homework. Knowing when a particular prospect's policy renews can be the difference between ending up at the bottom of a stack of long-forgotten messages, or getting on someone's calendar as an anticipated appointment.
Who knows, you might find yourself making "June money."
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