Are you protecting your business clients from the risk of disability? If you’re not offering paycheck protection, business overhead expense, and keyperson insurance, you’re not meeting all of their needs – and you’re leaving money on the table. Read on to learn more about insurance cross-selling opportunities.
The Odds of Disability Are Stacked Against Businesses
The odds of disability are frighteningly high for an individual. For a business, the risks are even greater.
Consider this. The Social Security Administration says that one in four of today’s 20-year-olds will become disabled before reaching retirement age. Those are scary odds, and they prove why individual disability insurance is so important.
But what about a small business run by four individuals? It’s likely that at least one of these individuals will experience a disability before retirement – and that could have a devastating impact on the business.
When an individual becomes unable to work because of an injury of illness, their finances can suffer. For business owners whose daily operations are dependent on them, the financial impact of a lengthy disability could devastate both their business and their life.
The Need Is Greater Than Ever
The situation may be getting worse. According to the World Health Organization, the number of people living with disability is on the rise, and an increase in chronic health conditions is part of the cause.
The COVID-19 pandemic is also creating many unknowns. Some people who get sick develop long-term complications. According to the Mayo Clinic, COVID-19 can damage the heart, lungs, and brain. Other problems with blood clots, mood and fatigue are also possible.
The pandemic has prompted many people to purchase life insurance. In fact, CNBC says that some firms reported double-digit increases in the number of life insurance policies sold.
This isn’t surprising. The pandemic forced people to face their own mortality, and that encouraged them to make the practical decision to purchase life insurance. But death isn’t the only risk people face.
Right now, people are worried about both their finances and their health, and business owners are worried about the future. That makes this a great time to start the conversation about disability insurance products for business owners.
Add Disability Insurance to your Toolkit
In this challenging economy, you need to constantly strive to provide your customers more options, better service, and a more complete solution to their insurance needs. This requires some insurance cross-selling. Adding paycheck protection to your toolkit is a good way to offer them even greater peace of mind, while adding a new revenue stream to grow your bottom line.
Offering paycheck protection products to your clients can also keep you out of legal hot water. Failing to inform your clients about their disability insurance, key person insurance or business overhead options could put you at risk for an errors and omission claim. After all, when disabled clients start losing everything, they’ll be looking for a scapegoat, and their financial planner or insurance agent are easy targets. Make sure you have proof that you offered a disability insurance quote and that the client signs a Waiver of Liability Form to protect your interests.
Need help getting started? Download our Broker Kit to learn more and make sure to take advantage of our free DI coaching services.
