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March 18, 2010 at 08:00 PM
“Uncertainty” is a word that has consistently been mentioned in outlooks for 2010 and beyond. To make a sale, it will likely require more prospects, longer lead times, alternative strategies, and patience. However, for as many challenges as you’re likely to face, this is a great opportunity to provide much-needed education and customer service.
Adequate insurance coverage is a critical aspect of financial health for Americans, but is often one of the first budget items sacrificed when times get lean. As individuals across the country try to attain financial security, education about the value of voluntary insurance in the event of sickness or a life-altering event, such as an accident or disability, is critical.
Consumer sentiment
According to a recent study titled “Why Supplemental?” conducted by RTi Market Research, current economic conditions have changed the way consumers feel about their security and ability to survive financially in the event of illness, medical emergency, or job loss. In fact, unexpected illnesses and injuries cause 350,000 bankruptcies each year
To add to this problem, out-of-pocket medical costs continue to rise, and the nation is still undecided (as of press time) on a plan to reform the national health care system. According to a 2008 Kaiser study, working Americans pay, on average, more than $3,000 per year in out-of-pocket expenses toward family coverage – more than double what they paid a decade ago.
Consumers should have a financial safety net in place to offset rising health care costs. One way to help them achieve that is by educating clients about the value of supplemental insurance – a voluntary benefit that provides cash benefits in the event of accident or illness, leaving the policyholder to decide the best way to spend it. Cash benefits can help to cover expenses such as mortgage, rent, car payments, and utility bills. Voluntary insurance will also help eliminate multiple financial burdens and related stressors.
In fact, in the “Why Supplemental?” survey of 1,200 consumers, respondents without supplemental or voluntary health insurance coverage were more concerned about their finances, job security, and insurance than those with supplemental coverage. Many individuals without voluntary insurance are taking drastic steps to save money, including skipping doctor visits and foregoing necessary medical procedures. They are heightening their financial risks because they are unaware of alternative options for expanding coverage to help with copayments, wellness visits, increased deductibles, and other out-of-pocket costs.
