Do your clients suffer from FOFU, Fear of Failing Underwriting? It might not be as common as a fear of heights or the dark, but it’s still pretty common, and it keeps a lot of people from getting the insurance they desperately need. Thankfully, there’s a way you can help your clients overcome this fear – it’s called Guaranteed Issue Disability Insurance.
Many Americans Have Medical Impairments
There’s a good chance many of your clients have medical impairments. According to the CDC, six in 10 adults in the U.S. have at least one chronic disease, and four in 10 have two or more.
Cancer, heart disease and diabetes are among the most common ailments.
- Every year, more than 1.6 million people are diagnosed with cancer. Although cancer is the second leading cause of death, many types of cancer can be treated when caught early.
- More than 34 million people in the U.S. have diabetes, and more than 88 million U.S. adults have prediabetes.
- About 108 million U.S. adults have high blood pressure. That’s one in three adults. High blood pressure can put people at risk for heart disease and stroke. About 70% of people who have a first heart attack and 80% of people who have a first stroke have high blood pressure.
Fear of Failing Underwriting
Traditionally, when people apply for disability insurance, as well as life insurance and certain other types of insurance, they have to go through the process of medical underwriting. This can involve answering invasive medical questions as well as undergoing a medical exam. It’s not anyone’s idea of fun. For people with a history of medical issues, it can be nerve-wracking.
Some people might decide not to bother. After all, why should they go through the hassle of applying for insurance when they’re just going to get denied anyway?
Unfortunately, this attitude means that many people are going without important paycheck protection. Even worse, the people who go without coverage might be the people who need it most.
Guaranteed Issue Disability Insurance Products Can Help
Many people with health issues might assume they can’t qualify for disability insurance, but this isn’t necessarily true. Although some carriers might deny them coverage for certain products, there are other options available. One of these options is Guaranteed Standard Issue, or GSI, products.
GSI plans are available to employee groups with five or more people. Because it’s a group product, the application process is streamlined. Compared to individual disability insurance, GSI may offer shorter benefit periods and lower benefit levels. This means that people who can qualify for individual disability insurance may still want to get a policy on their own. But for people who would have a hard time passing medical underwriting requirements, GSI plans provide a great way to get some income protection.
Open enrollment is coming up. This is a great time to talk to employers about offering Guaranteed Issue benefits to their employees. For more information, get the GSI Sales Guide.
