Small business owners are an ideal target market for individual disability income insurance. Why? They’re approachable, vulnerable, and determined to return to work – plus there’s a good chance that nobody else is talking to them about disability insurance.
A LIMRA study showed only eighteen percent of Small Business Owners carry disability insurance, and among those that do, half reported using it as a way of providing income replacement for the owner, partner, stockholder or executive. Eighty two percent remain unprotected, which leaves a large opportunity for you.
The key to selling to small business owners is to help them overcome their perception of invincibility. Speak to them about Income Protection rather than Disability Insurance. This softens the dialogue.
Once you are able to engage them, you can then help them understand the value of disability insurance and introduce them to the variety of comprehensive business protection products available, including: Individual Disability Insurance; Key Person Replacement; Business Overhead Expense, and Disability Buy/Sell Funding Insurance.
Some insurance customers, like Physicians and Attorneys, are well aware of the importance of disability insurance, and tend to want the best definitions and maximum amount of coverage possible. On the other hand, with small business owners, you want to start modest and grow from there.
The key to the disability insurance sale with this market is to get the owners to see their vulnerability and understand why they need the protection in the first place. Don’t spend a lot of time with the business owner that just doesn’t get it – there are many who will.
Many people underestimate their risk of Disability. Here are some facts1 you can share:
- While injuries are typically perceived to be the leading cause of disabilities, they represent less than 10 percent of disability claims
- Diseases of the musculoskeletal system, such as Arthritis, Tendonitis, Carpal Tunnel, and Lupus continue to be the leading cause of new disability claims approved
- Cancer remains the second leading cause of new disability claims
Are you ready to tap into this market? Your DI Sales Rep will help you:
- Learn about business owners
- Reach out to business owners about Disability Insurance
- Present Individual disability insurance to business owners
To learn more, contact your DI Sales Rep today.
1 The 2011 Council for Disability Awareness Long-Term Disability Claims Review