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Why DI? Why your clients need it Why you should sell it Why your clients need it Why you should sell it Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com.

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Presentation on theme: "Why DI? Why your clients need it Why you should sell it Why your clients need it Why you should sell it Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com."— Presentation transcript:

1 Why DI? Why your clients need it Why you should sell it Why your clients need it Why you should sell it Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

2 Of all the risks you take, if you could only protect yourself against one, would it be: Of all the risks you take, if you could only protect yourself against one, would it be:  the one most likely to occur? or  the one that if it were to occur, could produce the greatest financial loss? Of all the risks you take, if you could only protect yourself against one, would it be: Of all the risks you take, if you could only protect yourself against one, would it be:  the one most likely to occur? or  the one that if it were to occur, could produce the greatest financial loss? Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

3 1 in 1,300 1 in 70 1 in 1,300 1 in 70 1 in 109 1 in 8 1 in 109 1 in 8 1 in 1,300 1 in 70 1 in 1,300 1 in 70 1 in 109 1 in 8 1 in 109 1 in 8 Comparative Insurance Usages In A Given Year Life DI Sources: Transactions. Society of Actuaries Commissioners Disability Table Death – National Center for Health Statistics Fire & Motor Vehicle – Accident Facts. National Safety Council Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

4 Protect Your Most Valuable Asset Current Age $25,000 $35,000 $35,000$50,000$60,000$100,000$125,000$150,000 30875,0001,225,0001,750,0002,100,0003,500,0004,375,0005,250,000 35750,0001,050,0001,500,0001,800,0003,000,0003,750,0004,500,000 40625,000 875,000 875,0001,250,0001,500,0002,500,0003,125,0003,750,000 45500,000 700,000 700,0001,000,0001,200,0002,000,0002,500,0003,000,000 50375,000 525,000 525,000 750,000 750,000 900,000 900,0001,500,0001,875,0002,250,000 55250,000 350,000 350,000 500,000 500,000 600,000 600,0001,000,0001,250,0001,500,000 60125,000 175,000 175,000 250,000 250,000 300,000 300,000 500,000 500,000 625,000 625,000 750,000 750,000 Average Income to Age 65 Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

5 Why Don’t People Buy DI?  No one ever thinks they are going to become “disabled,” which in their minds means: Why Don’t People Buy DI?  No one ever thinks they are going to become “disabled,” which in their minds means: Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

6 Don’t Use “Disability”  Propose a new phrase – “Too sick or hurt to work” – “Too sick or hurt to work”  Propose a new phrase – “Too sick or hurt to work” – “Too sick or hurt to work” Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

7 UCL Major Causes of Disabilities 1995 - 2000 Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

8 Types of Disabilities  Total  then partial  then recovered (i.e. heart attack)  Partial  then total  then death (i.e. cancer)  Partial  stay partial (i.e. bad back)  Total  stay total (i.e. auto accident causing permanent paralysis)  Total  then partial  then recovered (i.e. heart attack)  Partial  then total  then death (i.e. cancer)  Partial  stay partial (i.e. bad back)  Total  stay total (i.e. auto accident causing permanent paralysis) Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

9 Types of Disabilities DeadProceed with caution Proceed as normal Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

10 The Good News and Bad News Good News People are living longer. Bad News Diseases that used to cause death are now leaving people disabled. Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

11 Disability On the Rise 70% 44% 36% 55% -73% -29% -48% -27% -32% -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% Death Disability Hypertension Cerebrovascular Diabetes All Four Heart Diseases Source: National Center for Health Statistics - 1999 Disability Death Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

12 Everything Rests on Income Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

13 Who Buys DI?  Doctors  Lawyers  Business Owners  Executives  Doctors  Lawyers  Business Owners  Executives Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

14 Percentage of Penetration Market Potential Source: Provident; Bear, Steams & Co. Inc. Report, 1998 Estimated Individual DI market size and penetration 78 Marketing Opportunity Millions of People Penetration (Left scale) Market Size (Right scale) 0 5 10 15 20 Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

15 Marketing Opportunity Individual Disability Market Penetration by Profession Source: UnumProvident; The Guide of Understanding the Life Insurance Industry Banc of America Securities Inc. 2001 Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

16 Marketing Opportunity Every 1.3 seconds someone becomes a hospital patient. Every 3.3 seconds someone is disabled for a day or longer. Every 7.5 seconds someone is disabled in the home. Every 15.6 seconds someone is disabled at work. 0 2 4 6 8 10 12 14 16 Likelihood of becoming disabled Source: Jim McCarty CLU, RHU, LUTCF, Above the Line: Scorching Strategies for Sizzlin’ Sales Success, 1988. Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

17 Number of Employees % of Companies ProvidingEmployee Disability Coverage Marketing Opportunity Source: Response Analysis Corporation,1994 Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

18  DI is discussed in only 36% of all insurance discussions.  Just ASK!  DI is discussed in only 36% of all insurance discussions.  Just ASK! Source: 2000 LIMRA International, Inc. Marketing Opportunity Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

19 Top 10 Companies Selling Noncancellable DI 1. Unum/Provident 6. IDS Life 1. Unum/Provident 6. IDS Life 2. Guardian Life 7. Principal 2. Guardian Life 7. Principal 3. Mass Mutual Life 8. Union Central 3. Mass Mutual Life 8. Union Central 4. Northwestern Mutual Life 9. Combined of America 4. Northwestern Mutual Life 9. Combined of America 5. Met/NEF10. Standard of Oregon 5. Met/NEF10. Standard of Oregon 1. Unum/Provident 6. IDS Life 1. Unum/Provident 6. IDS Life 2. Guardian Life 7. Principal 2. Guardian Life 7. Principal 3. Mass Mutual Life 8. Union Central 3. Mass Mutual Life 8. Union Central 4. Northwestern Mutual Life 9. Combined of America 4. Northwestern Mutual Life 9. Combined of America 5. Met/NEF10. Standard of Oregon 5. Met/NEF10. Standard of Oregon Source: 2002 LIMRA International, Inc., First quarter year-to-date. (Based on 18 participating companies.) Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

20 DedicationDedication  Union Central is dedicated to selling DI. Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

21 PersistencyPersistency  Due to the level premium structure of noncancellable DI, once a policy has been in force for several years, it is less likely to be replaced. Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

22  Current rates at a given age for $1000 of basic coverage Age Annual Premium Age Annual Premium 25$244.90 25$244.90 35$346.80 35$346.80 45$553.90 45$553.90 55$764.30 55$764.30  Current rates at a given age for $1000 of basic coverage Age Annual Premium Age Annual Premium 25$244.90 25$244.90 35$346.80 35$346.80 45$553.90 45$553.90 55$764.30 55$764.30 PersistencyPersistency Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

23 CompensationCompensation  Disability insurance has a strong FYC as well as an impressive renewal and bonus program.  Over time, selling DI is very profitable.  Disability insurance has a strong FYC as well as an impressive renewal and bonus program.  Over time, selling DI is very profitable. Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

24 Year DI Renewal (10%) + Bonus (5%) Life Renewal (2%) 1$0$0 2$3,075$600 3$6,150$1,200 4$9,225$1,800 5$12,300$2,400 6$15,375$3,000 7$18,450$3,600 8$21,525$4,200 9$24,600$4,800 10$27,675$5,400 Total$138,375$27,000 CompensationCompensation Assumes $30,000 premium/year; 100% persistency Note: DI and Life FYC over this time period = $150,000 each Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

25 Repeat Business  As a person’s income increases, the need to add more DI increases as well.  Guaranteed Physical Insurance Rider (GPIR) allows your client to purchase those increases.  As a person’s income increases, the need to add more DI increases as well.  Guaranteed Physical Insurance Rider (GPIR) allows your client to purchase those increases. Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

26 “While most individuals will protect themselves from the loss of personal property, few consider the consequences of losing the ability to earn a living.” “While most individuals will protect themselves from the loss of personal property, few consider the consequences of losing the ability to earn a living.” — Associated Press Online 2/99 — Associated Press Online 2/99 Experts recommend buying DI Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

27 Experts recommend buying DI “Before worrying about savings, one had better protect their income.” — U.S.A. Today 7/86 “Before worrying about savings, one had better protect their income.” — U.S.A. Today 7/86 Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

28 Experts recommend buying DI “Disability insurance may be a family’s only protection against financial ruin.” “Disability insurance may be a family’s only protection against financial ruin.” — Wall Street Journal 12/85 Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

29 Professional Liability  Agents who present themselves as “financial planners” but don’t discuss DI may be held liable for uninsured losses. Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

30 ConclusionsConclusions  There is a need to protect people’s income.  Relatively few companies and agents are offering disability income.  There are great financial rewards for selling disability income.  Union Central has a great product.  All you need to do is – Just Ask!  There is a need to protect people’s income.  Relatively few companies and agents are offering disability income.  There are great financial rewards for selling disability income.  Union Central has a great product.  All you need to do is – Just Ask! Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com Leading Edge Disability Center (888) 677-6575 www.disabilitycenter.comwww.disabilitycenter.com

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