The corporate executive market is a great place to start if you are looking for a lucrative market in disability insurance. Many of the millions of small and mid-sized businesses in America offer no income protection for employees with disabilities. Even those who do offer coverage, it is often insufficient, especially for upper- and middle management.
There are many opportunities in the corporate executive market. These opportunities can be tapped through expert planning design.
Good disability plans are custom-tailored for the specific needs of each client. It will usually include both individual and group features to provide the best coverage for the lowest price. These “combination plans”, which emphasize the strengths and benefits of individual non-can and group long term disability, are a great way to get into the corporate executive market.
Ask the right question To begin, ask your potential clients questions like: What are their problems? What are their goals? What coverage would they prefer? Are they willing to give more favors to high-ranking executives? What amount of money will they spend?
Asking questions helps clients understand their disability insurance requirements and allows you to discuss many options. You may need to play an educational role. Many employers have only introduced group insurance as a disability product. They are still unfamiliar with the concepts of discounting, underwriting concessions and combination plans.
Because of their flexibility, combination plans are particularly attractive. Employers have great control over how they structure their benefits programs.
Choose the best coverage mix.
Combination plans have been traditionally designed to include a small amount individual disability insurance for long-term disability. This would be 20 percent individual plus 40 percent LTD. However, the mix of individual and group insurance has changed. There is no “standard” approach. The client’s unique goals and make-up, along with any concessions that the underwriting department may be able to offer, will determine the right mix.
Once you have established the insurance goals for your clients, it is time to meet with an advanced underwriter or risk manager. Remember that flexibility is the main strength of combination plans – in product blending as well as underwriting. It is crucial to work with experienced underwriters in plan design. An experienced underwriter will analyze the details of each case in order to determine the best package for the client and establish the guidelines that will govern the underwriting.
Consider Guaranteed Issue.
Guaranteed issue (GI), in large cases, often replaces individual underwriting. A guaranteed issue (GI) policy covers a disability policy at the standard rate without any restrictions. To determine whether or not specific underwriting concessions can be made, the size, occupation, income, and ages are carefully evaluated. Guarantee to Issue is a variation of the guarantee issue offer. It is the standard policy, but the insurer retains certain rights.
Maintain continuity and flexibility.
The underwriter will ensure that no one is left behind if you are looking to replace or improve an existing disability plan design. This is particularly important for smaller cases where each individual plan is underwritten. You should aim to provide seamless coverage for all members of the plan.
Good plan design must also be able to withstand the test of time. The plan must be flexible enough that it can cover future employee promotions and salary increases. A well-designed disability plan can provide the best coverage for your clients. It can be very rewarding to learn how to design good plans. You’ll make a profit on multiple cases, add-ons, and new enrollments. Your client base will increase as you can offer exactly what your customers want.
It is important to partner with a reputable distributor or carrier in order to develop the best possible paycheck protection plans. Some of the most experienced carriers have been creating combination plans for years. They have dedicated departments to help producers create the best plans possible for their clients.
The best of both worlds.
You will be able offer flexibility and quality to your clients by designing first-rate plans for disability insurance. You will also have the skills necessary to help open doors for new business opportunities in the corporate market.
