Opportunity #1 – Protecting the Gaps in the Protection you have at Work (we have carriers that offer coverage up to $7500 per month in benefit without Blood/Urine/Exams)
Many people who have Group LTD through their employer don’t realize that there are offsets which reduce the amount of coverage they receive – they don’t realize that the benefits could potentially be taxable (further reducing the benefits paid) and for those with higher incomes – many employers have Caps on the amount of coverage they receive. Group LTD typically doesn’t cover any incentive compensation either. If they are in sales and receive any commission income or bonus income – that income may not be covered by their Group LTD through work.
Opportunity #2 – Business Overhead Insurance – Protecting the Business (this coverage is TAX-DEDUCTIBLE and benefits are received TAX-FREE – we have carriers that offer up to $10k per month in benefit without Blood/Urine/Exams)
Many businessowners (I’m a key example of this) write off a lot income. Individual Disability Insurance only covers your income. If you make $100k, but write off $50k you can only buy disability insurance based on the $50k – business overhead insurance covers all the expenses of the business. In my own example – it covers my car payments – the salary of someone else to come in and do my job – the wages of my employees – rent payments, and any other bills/expenses my business has.
Opportunity #3 – Disability Buy-Out Insurance
Most businesses may have a Buy-Sell Agreement between businessowners/partners – some may have it funded with Life Insurance – very few have it funded with Disability Buy-Out. If you have ever seen a copy of a drafted Buy-Sell Agreement, there is always a section in the agreement that outlines what happens in the event of a disability and when a buy-out should occur from a disability.
Opportunity #4 – Retirement Disability Insurance
Individual Disability may protect your income – but what protects the amount of money you are putting into your retirement plans? (Good cross sell with Disability Waiver with Life Insurance). Retirement DI protects the money you are adding into Qualified Retirement Plans – if you know businesses with 401ks – we can add this a Multi-Life, Voluntary Benefit with no blood/urine/exams.
Opportunity #5 – Loan/Lease Indemnification
Many businessowners have loans through banks. We can insure the loan payment from disability. How long could they be sick and out of work before the loan payments would become a problem? Also, leases – many small businesses lease office space – how long could you be sick without the lease payment becoming a burden. Example. You have a 12 month lease with your office space – you become sick and can’t work for a period time. You are obligated to make all 12 months of lease payments. This coverage is very inexpensive.
Opportunity #6 – Alimony/Child Support Payment Protection
Great product to use as an opening to Family Law Attorneys. This coverage will insure alimony and child support payments to an ex-spouse. Many lawyers make it part of the divorce decree that they have life insurance to protect those obligations, not realizing that there is a specialty coverage that covers the payments in the event of disability.
I think these 6 little tid bits can arm you enough to be dangerous and start a discussion. We can either teach you how to sell the business or if you want to refer it over and not deal with it – we can split the business 85% you/15% us.
Contact your Brokerage Manager with questions!
