Every day, consumers are inundated with cross-selling and up-selling offers. Would you like fries with your burger? Would you like a cover with your phone? Would you like to upgrade your minutes? And many times, the response to these questions is YES. Just imagine the potato overage our country would face if fast food restaurants stopped cross-selling french fries.
When selling insurance, insurance agents must think more like fast food marketers. Agents should always offer side-dish coverage to supplement the primary insurance purchase. Be innovative and bundle up a value meal of insurance to better meet clients’ needs. One possible insurance side dish is income protection – for both personal lines and commercial clients.
We tend to forget that commercial clients might need income protection. However, business owners today are facing more challenges and jumping through more hoops than ever just to stay afloat. The unstable economy, anemic job growth, rising costs, new healthcare regulations, and increasing risks are a drain on bottom lines everywhere, for businesses large and small.
That means business owners are stepping up their efforts to manage risks, and they’re naturally starting to think more about things like paycheck protection and disability insurance. And now more than ever, those struggling business owners need your expertise to protect their businesses and their profits.
Put on your consultant hat
Business owners seek a trusted financial advisor who will help them calculate their risks, assess their needs, and construct solutions. Play “what if” scenarios with them and ask tough questions. If they suddenly became disabled, what would happen to the income and business? How would they continue paying their mortgage and business overhead expenses? Would they blow through their retirement savings or their children’s college education funds just to make ends meet?
Suggest these income protection side-dishes:
- First, every business owner needs to know about Individual Disability Income insurance. Explain how this coverage can help maintain a disabled person’s lifestyle without draining savings or business profits.
- Next, talk about the business. Business owners need to know how Business Overhead Expense (BOE) insurance can help them maintain control of their businesses and avoid financial tragedy.
- While talking about the business, ask about key employees: Does your client have a key employee who is critical to the success of their business? What if that employee becomes disabled or dies? Your client needs to know about Key Person insurance, coverage that can protect the business and demonstrate financial stability to creditors and shareholders.
- Is there a business partner? What happens to the business if that partner is permanently disabled or dies? Does your client have the financial means or a plan to buy out the disabled partner? Reassure them that they can protect their business by funding a buy-sell agreement with Disability Buy Out (DBO) insurance without using business cash flow, seeking loans, or selling shares of their business for quick cash.
The bottom line is that your customers are vulnerable to the risk of disability. Whether you’re selling personal lines or commercial lines; property & casualty or life & health, think of income protection as your “fries on the side.” Your clients will be more satisfied and your production will soar. Download our free Broker Opportunity Kit and get started today. If you’re a managing agency, make sure to also download our “Why Outsource?” e-brochure.