What is the pros and cons of United American Insurance in Texas?

Question

Why do they pick people from non-insurance backgrounds to interview for their jobs as agents?

Answer 1

Cons - it is a hospital certificate, not major medical. Therefore, it has many limitations, such as a maximum benefit of $400 per day if you go into the hospital or $1500 for the ICU. The average hospital charges are around $3000 per day and ICU are $8000 so you have to pay the rest.

Pros - it has a cheaper premium than many major medical plans, but how smart is it to save $30 per month on the premium if you wind up with a $100,000 hospital bill sometime in the future?

Answer 2

As a former 1099 employee of United American, here's why:

They hire people that do not come with experience in the insurance industry because some of their practices may violate specific state laws, and because the company does not indemnify the agent or even OFFER most agents E&O insurance, the agent is then solely responsible for any violations committed.  

Additionally, UA is in the practice of dramatically overpricing their product and using misleading sales techniques in order to convince both potential clients AND agents to work with them.  An experienced agent is aware of many of these pitfalls, and is generally more aware of the "too good to be true" sound of a sales presentation.

UA talks a good game, but their medical product is substandard and over priced for what it offers.  Their Medicare policies are ridiculously overpriced, and many of the "selling points" of the policies are, in fact, legally mandated options, ergo: everyone has them.