Protecting Your Clients Most Valuable Assets Taylor Cruse
Protecting Your Clients’ Most Valuable Assets Taylor Cruse
Today’s agenda • Why your clients need and want DI • Business Overhead Expense • Critical Illness • Acci-flex (Accidental Death) 2
Who are we? We are a mutual insurance company that has been helping people through difficult times for more than a century. • A. M. Best A- (Excellent) • One-stop shop • From simplified to full medical underwriting 125 YEARS IN BUSINESS 3
2018 Leaders’ Conference DESTINATION AUSTRALIA Adventure Awaits April 14 -20, 2018
Century+ Individual DI Help for unexpected expenses related to a disability. 5 • Issue Ages: 18 through 60 • Four Occupation Classes: 4 A, 3 A, 2 A, 1 A • Maximum Issue Limits: $8, 000 -$15, 000 • Benefit Periods: 1 -, 2 -, 5 -, 10 -year, to-age-65 and to-age-67 • Elimination Periods: 30, 60, 90, 180 and 365 days • Guaranteed renewable • Non Medical Underwriting – up to $3000 of monthly benefit
Advantages
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Why should you sell it? Help reduce financial stress and focus on recovery. • • • 9 Your clients need it Lack of competition = ability to specialize Ensure completion of other financial objectives Door opener into sought after markets Renewal commissions Strengthen relationship with clients
Small Businesses = Big Opportunities Did you know? • There are more than 5 million small businesses in the United States • 39 million employees in those businesses, representing 35% of all workers in the US. • 62% of all businesses are small businesses 10
Business Overhead Expense (BOE) Reimbursement for operational expenses related to a disability. • Ages - 18 -60 • Working full time (30 hrs/week) • One year in business as an owner with a net profit of at least $10, 000 in the last year • Class 2 A - 4 A- $20, 000 • Farmers – Class 2 A- $2, 000 monthly benefit • Benefit periods: one or two years • Elimination periods: 30, 60 or 90 days 11
BOE Covered Expenses These are defined items incurred by the applicant, which are usual and customary in the operation of the business or profession. These expenses must be generally accepted as tax -deductible overhead expenses. Examples: • • • 12 Employee salaries, wages and benefits Utilities, laundry, janitorial, office maintenance Rent or mortgage (greater of depreciation or regularly scheduled payments Taxes, other fixed expenses, insurance premiums Leases on furniture/equipment (greater of depreciation or regular payments)
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Why Assurity for Small Business? We have all of the pieces to the puzzle you need for your clients. We also know this business and how to make it more affordable. 20% Business Owner Income Enhancer Business Owner Occupation Class Upgrade � 15% Multi-Life Discount � � � 14
Business Owner Income Enhancer 20% added to net income to offset writing down income with expenses for tax purposes Example: $40, 000 x 20% = $48, 000 net income 15
One-Occupation Upgrade An occupation class upgrade – • Three years in business as owner • Net income of $30, 000+ • Own at least 10 percent of the business. • 2 A occupations (contractors, plumbers, electricians…) can move to a 3 A – eligible for an Own Occupation Rider, plus 10 -year, to-age-65 or to-age-67 benefit period Occupations not eligible for the upgrade: medical, farmers, roofers. 16
Multi-Life Discount • Three issued policies + • List bill (same employer/employee group) =15% discount! ü Discount is applied to all policy and rider premiums, including ratings and the policy fee. ü Discount continues if someone leaves the group/employer. ü In many situations, a 10 -year benefit period with the discount costs less than a 5 -year benefit period! 17
• How will you be able to pay personal expenses? • How will the business continue? • Who will control the business? • How are the expenses going to get Assurity is the solution to these problems. paid? • Will you have to turn clients away? 18
Contractor sales idea Opportunity: • Mike, 35 -year-old contractor • Business owner with 3 employees • Net Personal Income: $60, 000 • Monthly Business Expenses: $15, 000 19
Contractor sales idea 20
Contractor sales idea Solution – Century+ DI and BOE Mike qualifies for 3 A occupation class with the Business Owner Upgrade and a 20% income increase. Both his paycheck and payroll will be protected. • $3, 590/month benefit for Century+ DI • $1, 790/month base policy benefit • $1, 800/month optional SDIR benefit* • 90 -day elimination, 2 -year benefit period • Includes optional Catastrophic Disability Rider, 3 -year benefit period • $15, 000/month policy benefit for BOE (90 -day elimination, 1 -year benefit period) *(SDIR known as SISR-Social Insurance Substitute Rider in New York) 21
What does this mean for you? Increased Client Persistency and Loyalty! 22 Number of Insurance Products Sold to One Client by One Broker Odds of Insurance Products Still Being In-Force After 5 Years 1 Product 20% 2 Products 65% 3 Products 85%
How would your client rank these 5 assets in order of importance? Health Home Auto Retiremen t Income
Critical Illness Simplified Critical Illness 12 Covered Conditions 3 Category Approach 100% of the benefit up to 3 times
Simplified app
Pre-Screen Checklist
Why Critical Illness • We all know someone • There is a need • Survival with consequence • It’s a LIVING benefit for the consum • Cost effective option 28 *Calculated based on 35% of total new and existing homes purchased in 2015; National Association of REALTORS, “Field Guide to Quick Real Estate Statistics, ” May 2017 **National Center for Injury Prevention and Control, CDC, “ 10 Leading Causes of Death by Age Group, ” 2015
Target Markets • Great alternative to declines • High Risk occupations (polices/fireman, construction, truck drivers) • High Risk Hobbyists (motorcyclist, ATV, boating • Mortgage Protection Acci-Flex Features • • • 29 Affordable, level premiums Non-med approval process Same-day underwriting for E-apps Issue ages 18 -60 Benefit amounts $50, 000 - $350, 000 Optional riders include ROP and Accident-Only Disability *Calculated based on 35% of total new and existing homes purchased in 2015; National Association of REALTORS, “Field Guide to Quick Real Estate Statistics, ” May 2017 **National Center for Injury Prevention and Control, CDC, “ 10 Leading Causes of Death by Age Group, ” 2015
$200, 000 Benefit for Males Monthly Premium Acci-Flex Product Base Policy Age 25 Age 35 Age 45 25. 52 21. 34 19. 58 Waiver of Premium Rider . 99 1. 40 2. 18 Return of Premium Rider 9. 63 12. 27 10. 32 12. 01 12. 31 12. 64 48. 15 47. 32 44. 72 Accident Only DI Rider $1, 800 Monthly Benefit TOTAL
$200, 000 Benefit for Females Monthly Premium Acci-Flex Product Base Policy Age 25 Age 35 Age 45 13. 64 14. 30 Waiver of Premium Rider . 92 1. 72 2. 62 Return of Premium Rider 6. 70 10. 11 9. 70 12. 24 13. 53 15. 40 33. 50 39. 00 42. 02 Accident Only DI Rider $1, 800 Monthly Benefit TOTAL
My challenge to you • Create a list of small business owners whom you can reach out to. • Begin the consultative process of setting that business owner up for financial success.
THANK YOU
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