If you’re only selling one disability insurance policy at a time, you may be missing out on big opportunities. Most professional offices have multiple people in need of paycheck protection. By offering multi-life disability insurance, you can get everyone coverage at once – and reap many benefits in the process.
What Is Multi-Life Disability Insurance?
Multi-life disability insurance is a paycheck protection option that provides multiple people who have the same employer with the chance to buy disability insurance coverage at a discount. By taking the multi-life route, workers benefit from the flexible terms and portability of an individual disability insurance policy at a better price than they could gain on their own.
Price objections are one of the most common reasons why people turn down disability insurance. Although you can overcome many price objections by explaining the risk of disability, pointing out the good value that disability insurance offers, and using proven sales strategies, some people may still be unwilling to buy disability insurance unless you can bring the price down. With a multi-life discount, you can make coverage more affordable.
What Are the Top Markets for Multi-Life Disability Insurance?
When looking for good candidates for multi-life disability insurance, consider any employer with multiple high earners who need disability insurance. Professional offices are a prime example, including:
- Doctors’ offices
- Dentists’ offices
- Law firms
- IT companies
- Architectural firms
- Engineering firms
- Accounting firms
The Advantages of Multi-Life Disability
Multi-life disability insurance has benefits for both the policyholders and the insurance brokers who sell the coverage:
- Everyone receives a discount. Many discounts are around 10% to 20%, but larger discounts are possible, depending on the insurance carrier. These discounts can be a big deal. Let’s say a policyholder would normally pay $2,000 a year for an individual disability insurance policy. A 20% multi-life discount would save $4,000 over the course of 10 years.
- You earn multiple commissions. What’s better than one commission? Three commissions! Selling multi-life disability insurance is a great way to increase your revenue.
- The discount can improve retention. If your clients keep their coverage each year, you earn a renewal commission. Unfortunately, some policyholders drop their coverage due to the cost. This means you don’t receive a renewal commission and your clients no longer have coverage. A multi-life discount makes coverage more affordable and can, therefore, lead to better retention.
- People who might have passed on coverage before may purchase a policy. Peer pressure isn’t always a bad thing, especially when it leads people to make good decisions. When everyone else in an office is making the smart choice to buy paycheck protection, people who weren’t planning to buy it may be encouraged to purchase coverage. It could be the great multi-life discount that helps sway them.
- Groups may also be eligible for guaranteed standard issue coverage. If five or more people need coverage, you can offer guaranteed standard issue coverage. This is a great option for people with pre-existing conditions as well as anyone who just doesn’t want to deal with medical underwriting.
Pulling Off a Multi-Life Sale
To be successful in multi-life disability insurance sales, a few things need to come together:
- At least three high earners must want disability insurance. Multi-life discounts are only available when three or more people with the same employer are buying coverage.
- Everyone will need to choose the same disability insurance carrier. The DIS team can help you select the carrier that best suits the needs of your group.
- You’ll have to coordinate applications. We can provide guidance in this area as well.
Before you start feeling overwhelmed, keep in mind that it will also be easier for you to sell multiple policies at once – the payoff is worth the effort! Also, you can save time by meeting with multiple individuals at once instead of scheduling your sales presentations separately.
Finally, it’s important to keep in mind that, even though all the employees need to have the same employer, they do NOT need to have the same position. For example, if you’re selling to a small doctor’s office, the three insureds could be the doctor, a nurse, and an office manager.
Do you need support tackling multi-life disability insurance sales? Let DIS help you.
