There’s gold in them thar’ numbers!
According to the Bureau of Labor Statistics 2014 National Compensation Survey, roughly two-thirds of American workers do not have access to disability coverage. Yet 97% of those who are offered disability insurance enroll in the coverage. The numbers are relatively unchanged over the last several years, but the story they tell is worthy of a closer look.
Only 34% of American workers have access to long-term disability benefits
Many employees are unaware of the details of their disability insurance benefit. In fact, an ADP study of HR decision makers, indicates that only 60% of employees actually understand their employee benefits. Yet when you first approach a prospective client about the need for disability income insurance, a common response is “I have disability insurance at work.”
How many of those who respond similarly understand the difference between short-term and long-term disability insurance and what that difference can mean to them if they suffer a long-term disability?
Rather than ask a potential client if they have disability insurance at work, lead with realism. Ask, “If you were unable to earn your current paycheck for more than 90 days, would you be able to pay your bills?”
The answer to the question doesn’t depend on an understanding of the difference between long-term and short-term disability insurance and it gives you an inroad to educating the client about the differences.
97% of American workers with access to long-term disability take it!
97%! Many long-term disability insurance plans are contributory, meaning that the employee must pay at least some of the premium. Even with a premium contribution, the enrollment rate is still 97%. Almost unanimously, employees chose to reduce the risk of financial disaster that may come from a long-term disability by participating in the benefit.
What about the 66% of workers who do not have access to long-term disability insurance through their employer? Clearly, long-term disability is a valued benefit among those with access to it. It seems reasonable to expect that employees without access to employer sponsored coverage would also recognize the value of protecting against the financial upheaval that might follow a long-term disability.
Underserved markets
The report also provides insights into which industries are neglected in the disability market. These may be the most lucrative areas to focus your marketing efforts. For instance, one underserved market is that of workers employed at small companies of less than 50 workers. Only 20% of small employers (2 – 49 employees) offer long-term disability. This group also enrolls in the benefit at 97%. More than 30 million people work for companies of this size. That’s a pretty large market. Who do you know that works for a small business, or which of your clients own a small business? Why not start with the low-hanging fruit? It a great way to build a steady momentum throughout the year.
Make 2015 your best disability insurance sales year. The market is wide open! Talk to DIS about other marketing ideas to reach the 66% of American workers without employee-sponsored disability coverage.
Remember DIS is your disability insurance resource, with helpful marketing ideas, tools, product education, and assistance with quotes. Contact us today to learn more about the products we offer or request a disability insurance quote. Need ideas to power your sales presentation? Watch our “3 Secret Questions” Video below and download this performance-changing report!
