Small business is the engine driving much of our economic growth, and small business owners believe this is a perfect time to grow even more. In fact, according to a survey of small business owners, almost one-third are planning to expand. Large capital purchases like fleet vehicles and equipment are forecasted by 41 percent of business owners.
For many businesses, capital purchases are financed by a bank loan. Expanding a business can also mean adding locations, a new building, or investing in technology.
Either way, business expansion represents opportunity for the disability insurance advisor. SBA loans often have insurance requirements, often involving the need for both life and disability insurance.
Bank loan disability insurance is structured to repay the loan while the business owner is unable to work due to an illness or disability. Savvy lenders know that the chance of disability due to illness or injury is high. And savvy advisors know that Bank Loan Disability Insurance is a key tool for many business owner clients.
Many carriers have affordable products developed specially for this market. Bank Loan Disability Insurance coverage usually offers an own-occupation definition, as well as benefit periods from one to 10 years to coincide with the loan period. A flexible interest rider can be added if the loan has a variable interest rate.
Capitalize on these opportunities by developing relationships with SBA lenders in your area. Lenders can be a great source of referrals. The SBA offers insights on how to find local lenders (quite often community banks). They also outline what is required to apply and qualify for a loan.
In addition to building lender relationships, be sure your business-owner clients are aware of your expertise in this area. Talk to them about the value of Business Loan DI as well as the role of Business Overhead Expense (BOE) insurance. These two coverages work hand-in-hand to protect business owners from carrying the burden of business debts when the principal is unable to work due to disability.
Call your DIS representative to learn more about the carriers offering Bank Loan Disability Insurance products and the riders and options offered. And, download Case in Point: Bank Loan Disability Insurance for more ideas on how to be successful in the Business Owners market.