As an underwriter of high limit disability for corporate, sports and entertainment markets, my perspective of the disability insurance industry is quite unique. It allows me to work with the nations top agents and see the disability business across company lines.
Also, as president of the Disability Insurance Advisors and Consumers Association, a disability study group, I speak monthly with the heads of the major disability insurers, home office underwriters and top general agents.
From this position, I can say without doubt that after over a decade of decline, the disability insurance market is making a comeback. Now is a great time to take advantage of this new opportunity and start asking clients to consider disability income coverage.
The real opportunity for you today as a financial advisor and risk manager lies in the state of the economy.
The 1990s boom has ended and consumers are less focused on profit potential and more focused on keeping what they have. They are more receptive to disability concepts that are cornerstone to the disability insurance business: protecting ones income stream as well as ones future.
What you as a disability producer need to know is: Your competitors are not talking about these issues or about how disability insurance can help. For you, that means opportunity.
For example, right now, some highly paid executives probably dont know that their group disability coverage may be capped at 35% of base income. They also may not know that an individual buy-up disability plan could be of great value to them in filling the gap. The disability producer can be the one to open the door to new possibilities.
Or, how about offering to review a companys group disability program? Many have not had a comprehensive review in a long time. If you are uncertain on how to proceed, there are many disability general agents and wholesalers who can help you.
Or, what about you doing your own reviewof your existing client base? When is the last time you visited with clients about the disability risk and the protection that is available to cover it? This is a discussion that can go several directions. Thats because disability planning requires a discussion of cash flow and income. This discussion can provide you with plenty of opportunity to discuss life insurance and investment planning as well as disability insurance.
Todays opportunity boils down to using disability planning to help build long-term, profitable relationships. Any good disability producer can tell you that disability renewal commissions are the best in the business–a solid base to any agencys bottom line.