DI Marketing & Sales Tips For Attracting Young Professionals

The millennial generation (also known as Generation Y) is defined as people ages 18-35.  Today they represent over 25% of the US population.

Many of them entered the workforce during a time of economic uncertainty and are more risk averse and mindful of their money than previous generations.  They face student loan debt as they start their professional careers post-college.

The young professional market is largely untapped.  With their future earning potential and conservative approach to finances, they make good candidates for income protection and other financial products.

Below you will find unique sales and marketing tips to help you generate significant sales and grow your practice in 2020:
  • Emphasize the portability and convenience of having personal income protection coverage.  It’s estimated that millennials will change jobs every three years.  Explain how they are in control to make decisions about their coverage.  Plus, individual disability coverage goes with them – no matter their location or occupation.
  • Ask your existing client base about their children and their financial needs.
  • Make sure you become part of their financial conversation by asking pertinent questions.  Millennials rely on recommendations and their parents are great sources for information.
  • Use social media and videos to communicate the need for income protection.  It’s important to build a presence on websites that millennials frequent.
  • Seek out volunteer opportunities in your community.  Young professionals are looking for ways to connect with their local community and businesses.  Volunteering is a great way to connect and make a difference.
  • Focus on the affordability of income protection.  In many cases, the cost for a 28-year-old can be less than $40 a month.  Yet it protects people’s greatest asset – their income.  Explain that monthly premiums are often less than they spend on other expenses, such as a cell phone or gym membership.
Here’s where to find young professionals:
  • Large employers that boast flexible work schedules and local community involvement.
  • Young professional groups.  TIP: Start with a YNPN (Young Nonprofit Professionals NetworkTM) local chapter.  Find a listing of local chapters at www.ynpn.org
  • Local chamber of commerce events.  TIP: Many chambers now have Young Professional sub-committees.
  • Graduate programs for Select Professionals, such as engineers, architects, pharmacists and attorneys, etc.  Find schools near you at www.50states.com.

Get started working with young professionals today.  There is a large percentage of millennials that want to purchase income protection but do not know where to buy it.  They want to turn to someone they know and can trust to ask questions and to help make a meaningful decision.  They will not go to the internet to purchase their Disability Income Protection.

Ask your dedicated Disability Income Sales Manager about our brochures and marketing pieces you can use to help attract millennial clients.

Critical Illness Insurance: Preparing To Bridge The Gap

Many Americans are living without ample savings – and a lot are living paycheck to paycheck.  When these families are struck with an unexpected illness such as a heart attack, stroke, or cancer, it can cause a serious financial hardship… even if they have health insurance.

The average annual income in the United States is $50,000 – and most health insurance policies carry at least a $5,000 or $10,000 out of pocket max that will easily be reached when suffering from a critical illness.

On top of that, any one of these illnesses will undoubtedly result in an absence from work for an extended period of time – causing the loss of valuable income at a time when they are experiencing increased expenses.

Consider This

This combination of out-of-pocket healthcare costs, loss of income, and mounting household expenses come together to form ‘The Perfect Storm’, which too often leads to a bankruptcy.

Bankruptcies resulting from unpaid medical bills will affect nearly 2 million people this year-making health care the No. 1 cause of such filings, and outpacing bankruptcies due to credit-card bills or unpaid mortgages, according to new data.

Having health insurance doesn’t buffer consumers against financial hardship.

Most advisors sell life insurance to protect their clients should the bread winner not make it home from work one day.  But how can we protect our clients against financial catastrophe if the heart attack, stroke, or serious illness doesn’t amount in a premature death?

Critical Illness Insurance pays a tax free lump sum payment on diagnosis of any one of a list of serious illnesses – including cancer, heart attacks, or stroke.

Claims statistics suggest we are five times more likely to suffer from one of these issues, than we are to die before we reach age 65.  You don’t want to get a call one day, find out something has happened to a client, and regret having never discussed the opportunity to purchase a Disability Income or Critical Illness Plan with them – have the discussion with each of your clients as soon as possible.

Our dedicated DI Sales Reps are well versed on the features and benefits of Critical Illness Coverage – contact us for assistance today.

The Shocking Reality – Federal Employees Disability Benefits Creates Opportunity

Federal Employees receive income protection through their work, but most don’t have any idea what their long term disability plan would actually pay if they got sick or hurt.  After reviewing the facts about what benefits are actually paid out, there could potentially be a big challenge for most of these employees if they had any kind of a long term illness or injury.

Federal Employees are covered under a plan called the Federal Employees Retirement System (FERS) – it pays the employee 60% of their taxable income for the first 12 months and after a 30-day waiting period.  Beyond that, the benefit drops to 40% and benefits can be offset up to an additional 60% of what is received by Social Security.

There are currently over 2,697,000 civilian federal employees with Disability Income Protection under the FERS plan – and over 84% of those do not carry any supplemental coverage.

I recently spoke with a 43-year old client of mine that is an Investigator with the Department of Labor – she has been with the DOL for 8 years and would probably be there until she retires.  We sat down and did the math together on what her benefits would be if she got sick or hurt and couldn’t work.

Her current taxable monthly income is $7,850.  If she were to get sick or hurt for a period over 1-year, her FERS Disability Plan would pay her, $3,140 taxable income until she is 62 years old.  After a modest combined tax rate of 25%, her net monthly income would be $2,355.

Her exact words were, “I had no idea. I could barely make my Mortgage Payment with that”.  I then reminded her that if she qualified for social security, her FERS benefits could be reduced by up to and additional 60% of what she receives from Social Security. That’s the Shocking Reality.

Work with carriers that specialize in offering supplemental coverage to Federal Employees.  Call your DI Sales Specialist today – we can show you how to grow your business by offering coverage to the Federal Employee Marketplace.

Protect Your Clients With A Family History Of Cancer, Stroke Or Heart Disease

While the chances of surviving a critical illness such as cancer, heart attack, or stroke are greater than ever, living with the condition can create a severe financial hardship for many of our clients.

Traditional health insurance plans cover medical expenses such as Hospital, Physician and Pharmacy. However, additional costs such as the insurance deductibles, child care, insurance premiums, and short-term home health care must often be paid by the recovering patient directly.

Critical Illness Insurance pays a tax-free lump sum payment on first diagnosis of any one of a list of 20 serious illnesses – including cancer, heart attacks, or stroke.

Claims statistics suggest we are 5 times more likely to survive rather than die before we reach age 65 of cancer, heart attack or stroke.

The good news is, medical advances make it so more people are surviving conditions that might have killed us years ago. For example, more than 90% of men diagnosed with testicular cancer are still alive 5 years after first diagnosis, and 80% of women diagnosed with breast cancer have the same survival rate. Over 5.8 million stroke survivors are alive today, many of them with permanent stroke related disabilities.

We have availability to several Critical Illness carriers that offer unique policies to meet your client’s needs

I have found one plan in particular that offers a very comprehensive benefit plan at a very affordable the cost.

Think of putting your premium dollars into a safety deposit box and if you are diagnosed with one of the 20 covered conditions (including Alzheimer’s Disease) the policy will pay the face value. Or if you die of one of the covered illnesses the policy will pay the face value to your beneficiary. If you should die of any other reason, 100% of all premium paid towards the plan will be returned to the beneficiary as a tax-free death benefit.

While most critical illness policies have a reduction of benefit at age 65, we have Critical Illness contracts that extend the full benefits to age 70.

The likelihood of surviving a critical illness grows every year as does the threat of being diagnosed. The coverage is affordable. A $50,000 benefit for a male, age 40, will cost approximately $52 a month. In addition to the lifetime version of the product, there is a choice of 10-15-20 and 30 year coverage periods. There is a plan to fit any budget with benefits up to $500,000.

Critical Illness Insurance is one of the best kept secrets in the industry and provides advisors a great opportunity right now to meet more clients, help more families and increase sales. Look to your clients with a family history of Cancer, Heart Disease, or Hypertension. They are very likely to be interested in purchasing protection.

Contact your Disability Insurance Specialist for detailed information about a plan that meets your client’s needs and budget.

It’s Not Disability Insurance – It’s Income Protection

Over the past couple years you may have noticed we changed the language around Income Protection slightly.  Reason being, in an industry sense it’s Disability Income Insurance – but in a practical sense, Income Protection is for clients who want affordable, simple protection that can help cover bills should they be unable to work due to illness or injury.

For the same reason we don’t refer to Life Insurance as Death Insurance – because no one wants to buy Death Insurance.

The word disability to many is very scary and associates them being incapacitated or stuck in a hospital bed.  When it simply means we just can’t do our job because we got sick or hurt.

So, what is the most effective way to engage your client in a conversation about Income Protection if they got sick or hurt and could not work?

Use these conversation starters:
  • How would you protect your income should you be unable to work due to illness or injury?
  • How much do you have in savings?
  • Do you have enough set aside to make ends meet for a several months if you’re off work?
  • Where will the money come from when your savings runs out?

These work great because although clients recognize the need for Disability Insurance (DI), the number of folks who actually get a DI policy is much lower.

I have heard from producers who sell DI as Income Protection that clients are more open to focusing on how they would financially manage a disruption in pay – especially when the majority of Americans don’t have enough in savings.

From there, you can sketch out how Income Protection fits in with their overall financial protection plan and how simple it is to get affordable coverage in just days.  (No medical exams or occupation classes are great examples.)  And once they see how easy the process is, chances are they’ll be sold.

What’s Next?

Simply let your clients know you are in the Income Protection business.  Your clients likely want Income Protection, but just don’t know where to get it.  They want to purchase protection from someone they know and trust – you.  Many clients assume they can only get an employer sponsored plan – unaware they can purchase an individual Income Protection plan if they get sick or hurt.

We have many options for you to use in order to help you get the word out.  Contact your Income Protection Specialist today for options that would be most effective for your business.