Life Insurance Awareness Month is perfectly positioned near the start of enrollment season for brokers. Although the next few months will be a sprint to meet with clients and implement new products, the most important part of your job is helping educate employees about the need for certain coverage particularly life insurance.
Here are three ways to pique employees interest when youre discussing life insurance with them this year:
1) Promote four reasons to buy at work
Employees might not understand the additional benefits that come with buying term life insurance through an employer. Emphasize the big four:
1) Pricing. Group pricing is often available when buying coverage through an employer.
2) Underwriting. Many employer-sponsored policies have limited or no medical underwriting.
3) Payroll deductions. Employees wont have to pay a monthly bill, as payment is deducted straight from their paychecks.
4) Portability. Even if an employee were to leave his or her current employer, he or she may be able to retain coverage.
2) Detail whats covered
Many employees particularly women and recent graduates arent properly covered, and worse yet, dont understand the risks of being underinsured. Help them understand why life insurance coverage is important, particularly how it can help provide peace of mind for their loved ones. An easy way to do this is to ask the simple question, How long would your family be able to make ends meet without your income?
Discuss the types of expenses life insurance benefits can cover, such as student loans and mortgage payments, childrens education/tuition and even common, everyday expenses.
3) Promote additional benefits
Many carriers include perks with their life insurance policies that do more than just cover bills. Promote extras, such as:
- Accelerated benefitsthatassist with end-of-life planning
- Waiver of premiumthat waives a persons life insurance premium if he or she were to become totally disabled under a specified age
- Travel assistance, which helps employees with medical care and other emergencies when traveling domestically and internationally
- Beneficiary financial counselingto provide beneficiaries with financial goal setting and assessment of their current financial situation
Focusing on at least one of these elements in your meetings can help you build your value as a broker, increase participation and improve client satisfaction.
West is the director of product marketing for Standard Insurance Company. He is responsible for development and enhancement of The Standards group insurance offerings.
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