Disability Insurance in the Small Business Market
Slide 1: Disability Insurance in the Small Business Market Page 1 For producer use only. Not for use with consumers. Policy no. B123, B128, B130, B152 12645CUSTOM (2/08)
Slide 2: Market Profile According to the Small Business Association (SBA)’s Office of Advocacy*, businesses with fewer than 500 employees: – Represent 99.7% of all employer firms – Generated 60 to 80% of net new jobs annually over the last decade – Employ 39% of high tech workers Page 2 *Source: U.S. Small Business Association’s Office of the Advocacy Small Business by the Numbers Updated June 2004. For research purposes, The Advocacy defines a small business as having less than 500 employees. For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 3: Market Profile According to the SBA’s 1997 report on small businesses*: – 78.8% had fewer than 10 employees – 99.7% had fewer than 500 employees – 56.5% of the 99.2 million private sector jobs – Of 11.3 million self-employed individuals: • 54.5% were between the ages of 35 and 54 • 37.4% were women Page 3 *Source: U.S. Small Business Association’s Characteristics of Small Business Employees and Owners published 1997 as supplement to the annual State of Small Business: A Report of the President. For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 4: The Opportunity for DI Sales • Today the disability insurance industry sells less than half the number of policies sold 15 years ago • Has the need changed? • Fewer advisors are active in the marketing of DI • Small businesses need your help Page 4 For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 5: Marketing to Owners of a Small Business • Understand the business owners’ motivation • Appeal to priorities • Distinguish your services – Be unique – Offer solutions that others do not Page 5 For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 6: Small Business Marketing Challenges • Business owner mindset – Fiercely independent, bullet proof – Business is priority – Concern for employees – BUSY • Economic pressures – Solvency! – Regulatory requirements – Little reported net income • Competition for benefit dollars Page 6 For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 7: Leading with DI • Business Overhead Insurance: The Business ProtectorSM – Address the priority of protecting their business • Buy-Sell Insurance: The Business Equity ProtectorSM – Business continuation • Voluntary Individual DI: The ProtectorSM* and The Protector+SM – Valuable benefits to employees, with no cost to employer *Available in California only. Page 7 For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 8: Business Products • The Business Protector (Business Overhead Insurance) – Provides for reimbursement of most fixed business expenses while an owner is disabled – Covered expenses include salaries, fees, employment taxes, rent, lease payments, utilities, business insurance premiums, property taxes, and dues, etc. – Designed for businesses with ten employees or less – Salary replacement rider allows for the hiring of an outside employee to perform owner’s duties Page 8 For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 9: Business Products • The Business Equity Protector (Buy-Sell Insurance) – Provides the funding mechanism to buy-out the ownership interest of a disabled partner – Allows the healthy partners to obtain ownership of the business, without adverse financial effects – Many businesses have failed to provide the funding for established buy-out agreements – Great source of referrals from the legal community Page 9 For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 10: Business Owner Programs • Business Owner Upgrade –Three simple steps • At least 25% ownership • Financially successful for at least last two years • All occupations* (except doctors, dentists, veterinarians, podiatrists and chiropractors) –Great for blue- or gray-collar owners –Can be used with all products in The Protector SeriesSM • The Earned Income Enhancer –Net income increased by up to 20% * Except medical and dental occupations, veterinarians, podiatrists, chiropractors and those listed as No in the occupation classifications listing in The Protector Series Product Guide, form 9251. Page 10 For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 11: Discount Programs • Multi-life = flexibility and savings – Three or more lives, discounted – Gender-neutral rates for The Protector* and The Protector+ – Gender-distinct rates for The Business Protector and The Business Equity Protector – No list billing required – Available with all products in The Protector Series *Available in California only. Page 11 For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 12: Discount Programs (continued) • Guarantee Issue – No medical underwriting, limited financial underwriting – Mandatory — Employer paid • Minimum of 10 or more lives, 100% participation required – Voluntary — Employee paid • Minimum of 15 issued lives, or participation by 30% of eligible employees, whichever is greater Page 12 For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 13: Discount Programs (continued) • Association Marketing – 10% discount for eligible members of an approved association, depending on the product – Discounts are available with all products in The Protector Series Page 13 For producer training use only. Not for use with consumers. ©1999-2005 StanCorp Financial Group, Inc.
Slide 14: Please contact your local Plus Group office for more information. Go to www.plusgroupus.com and click on the agency locator map to find an office near you, or call 800.831.1018.