In the insurance world, agents are constantly looking for ways to improve efficiency, lower acquisition costs, and boost commissions — without working more hours or taking on more risk. But what if we told you that switching your Hospital Indemnity carrier alone could put thousands more in your pocket every year?
Let’s walk through a real-world, numbers-based example that shows how moving from a 55% to 75% HIP commission level — just by switching to American Home Life’s Ideal Flex — can meaningfully lower your cost per acquisition (CPA) and dramatically improve profitability.
The average CPA nationwide for an individual agent selling Medicare Advantage is between $250–$400 per issued policy, depending on lead source, marketing strategy, and retention rates. That means if you write 300 Medicare Advantage (MA) policies in a year, you're likely spending somewhere around:
300 policies × $350 CPA = $105,000 in annual acquisition costs
And for many agents, those costs come upfront — in the form of direct mail, Facebook ads, Google clicks, live transfers, or cold data. So how do you offset that cost and come out ahead?
Hospital Indemnity isn’t just a great product for clients — it’s your secret weapon for recovering acquisition costs and unlocking additional income on the same client interaction.
Let’s say you’re selling Hospital Indemnity 30% of the time in your MA appointments — a modest and achievable ratio if you're consistently leading with copay conversations.
That means:
300 MA policies × 30% cross-sell rate = 90 HIP policies per year
Until recently, many agents were writing HIP with carriers paying 55% first-year commission. But with the release of the Ideal Flex Series from American Home Life, you can now earn 75% first-year comp on Hospital Indemnity — while selling a plan specifically built to fit the Medicare market.
Let’s assume the monthly HIP premium is $35, which is right in line with what most agents write for daily benefit amounts like $250–$300/day.
Annual premium: $35 × 12 = $420
Now calculate the commission:
90 HIP policies × $420 × 55% = $20,790
90 HIP policies × $420 × 75% = $28,350
Just by switching carriers — and writing the same number of HIP policies at the same premium — you gain an additional $7,560 per year.
That’s money that goes straight to your bottom line without working more leads or selling more policies.
Here’s where it gets even more interesting.
If your CPA is $350 per Medicare policy and you sell 300 per year:
Total CPA spend: 300 × $350 = $105,000
Now apply the $7,560 in additional income from AHL HIP commissions:
New effective CPA = ($105,000 − $7,560) ÷ 300 = $325.80 per policy
That’s a 7% reduction in CPA across your entire Medicare Advantage book — without any changes to your appointment process, lead sources, or talk track.
This isn’t just about a bump in commission. It’s about:
Offsetting rising lead costs
Getting more value from every Medicare appointment
Creating a more profitable, scalable business
Let’s say you're planning to double your production next year to 600 MA policies. That same 30% HIP cross-sell rate — now with AHL — would yield an extra $15,120 in income just from switching carriers.
At that scale, these choices are no longer just tactical — they're strategic.
A raise is nice — but not if the product can’t hold up in the field.
That’s where Ideal Flex shines:
Built for the Medicare conversation — lead with hospital copays, then show the plan
Clean, simple design that’s easy to explain and easy to issue
Solid core benefit with optional riders
Available in Texas (TX), Wyoming (WY), North Dakota (ND), Wisconsin (WI), Kentucky (KY), Tennessee (TN), Mississippi (MS), Alabama (AL), Georgia (GA), and Florida (FL).
And most importantly: Built with agent feedback from day one. Brokers Fidelity worked directly with American Home Life to create something that actually works in real sales scenarios.
Let’s be honest: if you’re writing HIP under a big-box IMO, chances are you’re getting 55–60% comp tops — even though those firms are getting override and admin fees.
We’re not knocking those models. They work for a lot of people.
But if you’re ready for more control, compensation, and personal support, Brokers Fidelity offers:
Top street-level comp
Real-time support and product training
Direct access to the people who built Ideal Flex
This is what we call our 2.0 IMO model — and we’re backing it with tools, contests, and training that actually help you sell.
If you’re writing 90 HIP policies a year — and you’re not using American Home Life — you could be leaving over $7,000 on the table annually.
That’s money that could offset lead costs, fund new campaigns, or go straight into your business.
In today’s market, where efficiency and scale matter more than ever, this kind of switch isn’t optional — it’s smart business.
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Watch the Sales Leadership Webinar with Shawn Buxton for even more strategy
Brokers Fidelity
Phone: 913-374-1550
Email: hello@brokersfidelity.com
Address: 400 S Kansas Ave, Topeka, KS 66603