The small business owner market accounts for a 44% of the United States economic production*. Small business owners are the perfect target market for Individual Disability Income Insurance because, they are approachable, typically unprotected by Worker’s Comp, and a favorable risk to all DI carriers as Business Owners are more likely to return back to work to run their business.
Your Opportunity
There is a very high probability that nobody else is talking to your business owner clients about individual disability insurance. A 2019 LIMRA study showed only 18% of business owners carry individual disability insurance to protect their income or supplement their group LTD plan that has limitations for business owners. Among those that do, half reported using it as a way of providing business protection only for their other partners or stockholder. Leaving 82% unprotected to protect their own income, which leaves an open market for you.
The key to fully protecting them is to help them overcome their perception of invincibility.
Once you ask, what will happen if you get sick or hurt? You can help them understand the value of disability insurance and introduce them to the variety of comprehensive business protection products including Individual Disability Insurance, Keyman Replacement, Business Overhead Expense and Disability Buy/Sell Funding Insurance.
Expand Their Awareness
Some disability insurance customers like physicians, dentists and attorneys, are well educated about the importance of disability insurance. However, they still need to be updated on the new advances in coverage options. With small business owners on the other hand, the need for protection does not differ. You, as their advisor, need approach these valued clients and let them know they need to protect their income if they get sick or hurt.
The key to the disability insurance sale with this market is to get the owners to see their vulnerability and understand why they need the protection in the first place.
Don’t get me wrong, some business owners will just not get it, and some will see the importance right away. Don’t waste a lot of time with that business owner that just doesn’t get it. There are many that will. You, as their advisor, owe it to them to at least bring the need to the table.
State Your Case
Many people underestimate their risk of disability. Here are some facts you can share:
While injuries are typically perceived to cause many disabilities, they represent less than 10% of disability claims.
Diseases of the musculoskeletal system, such as arthritis, tendonitis, carpal tunnel, and lupus continue to be the leading cause of new disability claims approved in 2019.
Cancer remains the second leading cause of new disability claims.
To help you tap into this market, we have information and marketing support you can use. Contact your Disability Income Department for additional information and support.
*Source US Small Business Administration https://advocacy.sba.gov/2019/01/30/small-businesses-generate-44-percent-of-u-s-economic-activity/