Worksite Life: A Door Opener For CI Sales
Critical illness insurance marketers often position CI insurance as a door opener to sales of other personal insurance products.
But, for some worksite producers, other productsin particular, life insurancehave become the door opener for CI insurance sales.
How does that work? “We have many existing customers who own various voluntary products we have sold them,” says Joseph Gaudino. “Now, CI insurance is an opportunity for us to present something new to these people.”
The president of Worksite Communications, a Tallahassee, Fla., benefits enrollment company, Gaudino says voluntary life insurance in particular becomes a springboard for the CI discussion.
“Life insurance is easy to understand,” he explains, “so it is easy for us to open with that. Then, we suggest CI as an additional product the employer can offer.”
This becomes a natural discussion, says James Ward, owner of Ward Services in Columbia, S.C.
“Everyone needs life insurance,” he explains. “But not everyone has a need for CI insurance, or at least not everyone thinks they have this need.”
So, for Ward, it just makes sense to discuss the life insurance first.
He prefers to work with worksite universal life insurance that has living benefits features for long term care, home health care and critical illness insurance. Then, after the life insurance need has been addressed, he discusses the other features with the client.
In one plan he sells, the LTC and home health features are included in the base plan, but the CI component is available at an extra cost. The critical illness piece pays a CI benefit equal to one-third of the life insurance benefit, as a separate (not accelerated) benefit.
“Maybe, in the first year of a new account, we wont even offer the CI rider. We might introduce it later, at re-enrollment time, for instance.
“Then, in another year, we might offer the life and CI package and also a stand-alone CI product for those who dont want the life insurance,” Ward says.
This kind of phased-in approach helps the employer enhance the companys core benefit plan, Ward contends, and it does it by building on the life insurance.