How Do You Convince Recent Grads To Buy? Tap Their Parents

It’s springtime, and that means a fresh crop of students exit college and enter the real world. Among the first wake-up calls these newly-minted graduates will get: they don’t have health insurance.

Many graduates won’t get jobs that provide insurance off the bat — some for many years. A recent survey by the College Parents Of America found that just 23% of parents were confident their children would get a job with benefits right after college.

Two Things You Can Tell Grads

While these new grads try to find a career, they’ll need to be insured. But many will have to be convinced of this need.

When working the new grads market, there are two big selling points:

• Affordability
  Many recent grads are facing student loan payments, car payments, and credit card debt. Another bill can seem like too much to take on.

  Make it clear how little a policy can cost. Remember, most of these prospects have no idea how insurance works. Be prepared to discuss the basics before you start talking price.

• Risk
  Put the cost of insurance in context. Explain how expensive it is to get caught without insurance — even for a seemingly small medical problem. Mention that the average cost of a day in the hospital is $7,175.

  No graduate wants to start their adult life with a mountain of medical debt. But by passing on health insurance, they’re gambling on their health and their finances. Your job: make them understand that it isn’t a safe bet.

  What to sell them:

  • Short term plans.

   Pull out your affordable short term plans. If the grad’s a real go-getter with their sights set on a good job with benefits, they may only need a short term plan to cover the gap from school to career.

  • High deductible plans.

  High deductible plans offer lower monthly payments and often cover preventative care. The deductible’s a little steep, but perfect for a healthy grad who only needs it for catastrophe coverage.

Don’t Forget The Parents

It isn’t just the grads who deserve your attention. Don’t forget about the people who often end up footing the bill: the parents.

You’ll probably find parents are an easier sell than the grads. They have more income to spend on insurance. More importantly, they understand the value of having health coverage — and they want to make sure their son or daughter is protected.

That doesn’t mean parents don’t need education. The College Parents study found that 40% of parents thought that their policy covered their adult children. Fact is, for most of those children the coverage stopped as soon as they were handed their degree.

Invite parents to take another look at their policy. Chances are they’ll find that their children aren’t covered. Gently remind them how risky it is to be uninsured. Then let them know that you’d be happy to sit down and discuss their options.

New Options For Insuring The Young

Carriers nationwide have gotten wise to this emerging insurance market. Over the last few years companies have launched health plans aimed directly at younger consumers. Many of these plans have seen solid initial success — so expect to see more of them.

Even if your carriers don’t have specific “youth” policies, you can still put together a proposal that meets the needs of recent grads. Focus on the kinds of coverage they need now. This is a group more likely to break their leg skiing than to need prenatal coverage.

Make sure the recent grads in your market — and their parents — understand the necessity and affordability of health insurance. You could find yourself with an unexpected set of new clients.

Start reaching parents of grads-to-be now:

• Set up a booth at a local campus on parent visiting day
• Sponsor college sports and display a banner at games, or hire a few cheerleaders to hand out flyers to attendees
• Place ads in college newspapers (parents do read those)
• Hold a seminar about preparing to enter the workforce – “How to get a job that won’t hold out on health benefits”
• Write a tight, brief special report booklet about why even minimal coverage is a smart move. Hire a graphic designer to give it a trendy look, then distribute it free at campus outlets.