Cross-Sell Opportunity: Add DI To The Long Term Disability Sale
The growth of small businesses in the last decade created a huge potential for combined group long term disability and individual disability income sales.
Further, with the odds of people becoming disabled and a market many agents have ignored, the opportunity is great for agents to position themselves as a valued resource by offering combined disability solutions.
Consider the numbers: Approximately 30% of all people aged 35 to 65 will suffer a disability for at least 90 days, and about one in seven of those individuals can expect to become disabled for five years or more (Health Insurance Association of America; The New York Times, February 2000).
In addition, in 2000, only 21% of small businesses with fewer than 100 employees planned to add LTD benefits. (U.S. Small Business Market, Preliminary Results, LIMRA International, 2000)
Hence, the sales opportunities. The question for producers, is: How do I tap this growing market? Here are some suggestions.
First, to open the door, focus on the positives of group LTD. These positives include:
–Its affordable. (On average, LTD premiums cost employers one-half of 1% of payroll).
–Its guaranteed issue (with certain pre-existing condition clauses) for eligible employees.
–It does a good job of providing a basic platform of coverage (60% of salary).
Next, assess the sales opportunities. Here, there are two potential routes to take.