What DI Producers Need To Succeed In Multi-Life
By many estimates, the fastest growing segment of the individual disability income insurance market over the last few years has been the sale of multi-life products.
In the multi-life DI market, carriers will issue coverage on a guaranteed standard issue basis, with premium discounts up to 35%, for employer-paid and voluntary benefit programs.
While the amount of coverage issued on a guaranteed standard issue basis will vary based on the number of participants in a case, it is not unusual to see offers for $10,000 or more of monthly individual DI benefits. This volume-driven business offers significant income potential to individual DI producers.
As the market has developed, producers who traditionally sell individual DI on a one-on-one basis to professionals, executives and business owners have shown increased interest in distributing multi-life individual DI, too. But to be successful in the multi-life market, these professionals need to master certain sales concepts. These concepts are related to the sale of group long term disability insurance.
Some examples follow:
See group LTD as friend, not foe.
Producers who sell exclusively in the individual DI market often view group LTD in a negative light. When selling to an individual buyer, they may try to diminish the value of LTD by pointing out limitations of LTD relative to individual DI, especially its lack of guarantees.
But this approach can work against these producers if they want to enter the multi-life market. For example, in the multi-life market, the decision-makeroften a benefit managermay have been the person who made the decision to buy the LTD plan.
A better strategy is to learn to see group LTD for its strength as a low cost disability insurance plan that is easy to install. Then, build upon that base to create multi-life individual DI sales opportunities.
Solve reverse discrimination issues in group LTD.
Most group LTD plans cover 60% of earnings up to a specified monthly maximum benefit. This means that a plan with a $5,000 monthly maximum covers 60% of wages for people who earn $100,000 or less.