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October 14, 2013 at 12:57 AM
According to LIMRA, 50 million U.S. households say they need more life insurance. That’s a huge window of opportunity for brokers assisting the employees of group customers in planning for the future.
It’s important for brokers to help clients demonstrate the value of group life insurance to their employees, so let’s dispel some of the myths of selling group life insurance that can affect the sale.
Myth #1: Life insurance is a commodity product.
Often, group life insurance is treated like a commodity because its complexity is misunderstood. Plan designs can be intricate, and many don’t realize how group life insurance affects a family once a claim is filed.
Brokers can provide additional value to clients by thinking through the nuances of different carriers’ plans. Each carrier may handle claims differently and offer varying additional benefits, such as travel protection and beneficiary financial counseling.
Certain demographic populations — employees out sick, taking accelerated benefits or waiting for waiver premiums — are perfect examples of why it’s valuable to understand the particulars of different plans. These groups may not easily roll over into a new plan if coverage is changed, so it’s important to understand how different carriers treat them.
Myth #2: Everybody already knows about life insurance, so employers don’t need much enrollment support.
Helping employees understand the value of participating in their employer’s life insurance plan is one way to maximize overall plan participation and increase employee awareness of the strength of their benefits package.
Urge employers to highlight life insurance as part of a robust benefits package during recruitment and hiring — the first days at a new job offer a great opportunity for an employee to purchase group life insurance.
See also: Exchanges juice voluntary market
Frequency of message is important, too. Employer-sponsored health fairs, on-site enrollment meetings and periodic informational sessions can bring in new participants. The communication vehicle should vary as well.
Use a variety of touch points, including emails and intranet messages, posters, brochures and phone calls. This personal touch, combined with the convenience of technology that younger employees respond to, will help motivate people to enroll.
Myth #3: Medical underwriting is a four-letter word.
Medical underwriting is becoming less complicated, easier and more convenient. Carriers are developing tools to reduce some of the hassle associated with submitting medical history statements.
