How To Increase Your DI Sales

Full-Time Independent 1099 contractor groups are now eligible for multi-life discounts or Affinity Business Discounts.

Typically the employee must be part of an employer group, work full-time, and receive W-2 wages to qualify for a multi-life discount.

Now, small groups of 3-14 employees and contractors can qualify for an Affinity Business Discount without any employer sponsorship and receive only 1099 income.

Who is Eligible?

Under the Business Affinity Discount Guidelines, eligibility is available to groups of 3 or more individuals applying at the same time who are:

  • Employees and/or 1099 contractors under a common employer

OR

  • Are members of a local professional employer organization

Each applicant must have an issue age of between 18 to 70, and Occupational class of at least 3A.  The launch of the Business Affinity Discount makes now a great time for you and your clients to discuss the exceptional benefits of Disability Insurance at an even better price.

The following professions also represent potential sales opportunities:

  • Accountants
  • Independent Insurance agents part of an agency
  • IT Professionals
  • Real Estate Agents
  • Consulting Groups

Please contact your Disability Income Sales Rep for additional information.

The “Third-Tier” Of Income Protection For Top Wage Earners

The need for income protection in this country is clear – statistics show a common lack of personal savings amongst the majority of households.  And top earners are not immune.

Although major corporations typically provide Disability Insurance (DI) through employer sponsored programs or voluntary employee-funded group DI plans, most physician and executive programs insufficiently limit benefits to a fraction of earned income – creating a great financial shortfall for high-income individuals.

The answer?  A prescription of raised limits of DI throughout the market.

A high-cap excess personal DI is a great way for physicians, attorneys, accountants, and white-collar executives to find appropriate levels of economic safeguard.

We can provide a variety of “third-tier” Income Protection products to meet your client’s needs – and ensure the financial safety of your affluent and under-insured clientele.

The plan can be as simple or comprehensive as your clients’ needs require

Securing individual DI is another obvious step – but again, traditional domestic disability carriers frequently fall short with their maximum issue limitations.  If you have any clients or prospects who are making over $250,000 annually, they should be insured at least up to 65% to 75% of their earnings.  Their protection needs may not be met by group coverage even with the addition of a layer of individual DI.  The bundling of group and individual DI alone is not always a sufficient solution.

As a life/health insurance advisor, you know better than anyone that a sudden injury or prolonged illness can happen to anyone at any stage of their professional career.

Contact your DI Specialist for more information on “Third-Tier” coverage.

Summer Time, And The DI Selling Is Easy

With summer coming, your clients are most likely looking forward to soaking up the sun, and enjoying their favorite outdoor hobbies like mountain climbing, rafting, boating, etc.  What they probably don’t consider much about their favorite hobbies is the risk of injury that comes with them.

Accidents are bound to happen, and there are income protection policies geared towards these types of situations.

Consider This:

Let’s say your client gets a “boo-boo” – there is coverage that will provide them with a sufficient amount of time to recover, and tax-free income every month.  There are options for shorter term benefit plans which last from 3-6 months, to plans that would cover your client for up to 2 years.

Monthly benefits amounts are predicated on the client’s income with a max benefit of $5,000.  For most, this will keep the mortgage paid, lights on, and kids fed while they can recover.  For example, a 33 year-old carpenter with an annual income of $60K qualifies for $3,500 tax-free monthly income, for a $37 monthly premium.

If your client should get sick or injured, lands in the hospital and doesn’t have an Income Protection Plan in place, it’ll be too late.

Contact your Disability Income Sales Rep today to find out exactly how affordable Income Protection can be to fit any and all clients’ needs.

Business Owners Protect Their Business With Key Person DI

The loss of a key person employee could be incredibly detrimental to the future success of a company.  While a majority of businesses offer Key Person Life Insurance should their superstar employee prematurely pass, what would they do if their key employee suffers an Injury or sickness that keeps them out of work for a lengthy period of time?

Consider Key Person Disability Insurance:

Employees are 8 times more likely to suffer a disabling sickness or injury before they retire, than they are to pass away.

Key Person Coverage provides the crucial benefits and cash flow a company needs to move forward, while maintaining profitability if a key person were to incur an injury or illness.

How It Pays:

After 90 days, benefits for Key Person Insurance will typically pay 150% of the employee’s salary over 12 months – providing enough time to recruit, hire, and train a replacement without losing any profits.  In some cases, benefits in excess of 150%, unrelated to income, may be obtained.

Companies are able to use these benefits to hire a temporary employee if the prognosis is short-term – or to defray the costs related to finding a replacement if the disability is permanent.

A lump sum benefit could provide a capital infusion to a firm with a single cash payment.  This approach is typically used when a firm has significant cash flow, or savings for a temporary disability.  However, a long period of disability may cause a major financial pinch, creating the need for a lump sum benefit.

With an elimination periods of twelve months, benefit amounts may be up to three times the annual income of the key person.  Larger benefits are also available, subject to financial justification.

Additional information can be provided to demonstrate the value and likely loss a firm will suffer in a key person’s absence.  Contact your DI Sales Rep to discuss a case.

Income Protection – Statistics That Hit Home

With the access you have to your clients’ financial plans, comes the responsibility to protect their most valuable asset – the ability to earn a living.

Insurance is available for everything from a car to a cell phone, and it’s vital to remind your clients that those things don’t exist without the funds to facilitate them – which is exactly why income protection is so important.

The following statistics highlight the importance of having that discussion:
  • An estimated 48.9 million people, or 19.4% of the non-institutionalized US civilians, have a disability.
  • An estimated 24.1 million people have a severe disability.
  • An estimated 34.2 million people, or 17.5%, have a functional limitation

Social Security is not a reasonable resource on its own – the average SSDI benefit payment is a mere $1,256 for males and $993 for females per month.

Employer sponsored DI plans only pay 60% of a client’s income – plus, the benefits are taxable with a cap on the maximum benefit.  And, less than 5% of disabilities occur as a result from an accident on the job – where worker’s comp would be applicable.

It’s a matter that every advisor should take to heart, especially when most of you know your clients on a personal level.

We have the tools for advisors to start the conversation about Income Protection.  Contact your DI Associate today.