multi-life disability insurance

Insurance sales agents have a rewarding job. They help others obtain the coverage they need while also earning a good living. When you throw multi-life disability insurance sales into the mix, the rewards multiply.

A multi-life disability insurance discount is available when groups from the same employer purchase disability insurance. The discount can be significant. Here are nine ways multi-life disability insurance is meeting demand.

1. The odds of disability are greater than many people realize.

Many people think of disability as a rare event that’s unlikely to impact them. The actual numbers prove otherwise. The Social Security Administration says someone who is 20 years old today has an approximately 25% chance of becoming disabled before reaching retirement age.

2. Workers need help securing coverage.

Unfortunately, despite the high odds of disability, many workers aren’t covered. The 2021 Annual Survey of the U.S. Individual Disability Insurance Market from Milliman shows that the number of new policies dropped by 11% in 2020, likely due to COVID, and the new premium in the first half of 2021 was 4% lower than it was in the first half of 2020. Multi-life disability insurance helps workers secure the coverage they need to prepare for the financial consequences of a disability.

3. Social Security Disability Insurance is not the answer.

Many people assume they’ll be able to survive on Social Security Disability Insurance benefits, but this often isn’t the case. First, the Social Security Administration (SSA) says that only around 31% of claims are approved. That means close to seven out of 10 applicants are denied! Second, even the people who do qualify only receive modest benefits. The SSA says the average monthly benefit for all disabled workers was $1,358 in January 2022. That’s only $16,292 a year. Most workers need more coverage, and multi-life disability insurance can provide it.

4. Group disability insurance may not cover workers adequately.

The Council for Disability Awareness says the average long-term disability claim lasts 34.6 months. A group short-term disability insurance policy won’t cover a period of disability that lasts for this long. A group long-term disability insurance policy might, but many group programs only replace around 60% of the worker’s regular income, and that amount is typically taxed and subject to a $5,000 monthly benefit cap. As a result, workers may not receive enough funds, and highly compensated workers are especially vulnerable to large income gaps. Multi-life disability insurance can supplement group coverage to better protect workers.

5. The multi-life discount is compelling.

Multi-life disability premiums discounts vary based on the carrier, group size and other factors. However, Milliman says employer-sponsored multi-life discounts can often range from 15% to 35%. That’s a significant savings. This discount can help insurance agents overcome price objections so more people obtain the coverage they need.

6. Guaranteed standard issue (GSI) simplifies underwriting.

The multi-life discount is compelling enough, but many groups also qualify for GSI coverage. Milliman says that GSI underwriting accounted for 89.7% of employer-paid multi-life disability insurance in 2020.

7. Small business owners need more coverage.

A disability can impact a business owner’s personal and business finances. As a result, they need multiple types of coverage.

  • Individual disability insurance provides coverage against the business owner’s personal financial risks. If the business owner is unable to work due to a disability, the policy can replace a portion of the pre-disability income, according to the policy terms.
  • Several business insurance products provide additional protection for the business itself. Business overhead expense insurance covers certain operating costs during periods of disability, while bank loan disability insurance covers requirement loan payments. Other disability insurance types to consider include buy-sell disability insurance, which can fund a buy-sell agreement that goes into effect if a business partner becomes disabled, and key person disability insurance, which provides a payment to the business if a covered employee becomes disabled and can’t work.
  • Business owners also need to think about their employees. Many companies have been struggling to maintain adequate staffing levels, and skilled workers are especially in demand. The February 2022 Job Seeker Survey from Bankrate found that 52% of respondents say higher pay has become more important since the onset of the pandemic. While salary matters to many workers, benefits can also be a key part of total compensation, and increasing benefits can be more cost-effective than increasing salary. A strong compensation package that includes long-term disability insurance can help employers meet their staffing needs.

All of these disability insurance products are important for business owners for different reasons, but the costs can admittedly add up. That’s why multi-life disability insurance is critical. With the multi-life discount, small business owners can secure the coverage they need to protect themselves, their employees and their business, without breaking the bank.

8. The agent wins, too.

Multi-life disability insurance is a great deal for policyholders. It’s also a lucrative opportunity for insurance sales agent. As an agent, you know that selling one policy is good, but selling three policies is better. The more policies you sell, the more commissions you earn. With multi-life disability insurance sales, you can make multiple sales at once.

9. DIS walks you through every step.

If coordinating a multi-life sale sounds overwhelming, you can relax. DIS is here to help you identify prospects, make a compelling pitch and compare your carrier and product options. Learn more about multi-life disability insurance.

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