The Disability Insurance Opportunity | ThinkAdvisor

What do you want to know

  • About a quarter of today’s 20-year-olds may need disability benefits at some point.
  • About 54% of Americans have life insurance.
  • Only 14% have private disability insurance.

According to the Social Security Administration, 1 in 4 of today’s 20-year-olds will become disabled during their career.

Statistically speaking, people are more likely to become disabled than to die before retirement.

However, only 14% of Americans have disability insurance, compared to 54% who have life insurance.

Disability insurance: Useful, but undersold.

This is an untapped opportunity for insurance agents and brokers.

Here are several more reasons why you should consider adding disability insurance to your product arsenal.

1. Technology

The process of underwriting and applying for disability insurance has always been a disaster.

This is one of the main reasons why income protection has remained untapped.

Few products needed more urgently than disability insurance to be swept away by the insurtech wave.

With so many unique professional factors to consider in the underwriting process, applying for disability insurance was terribly clumsy and usually took months. This is especially true for 1099s and freelancers, who have a harder time predicting their regular income.

Disability insurance just wasn’t worth the time, so consumers and agents stayed away.

But insurtechs and their use of predictive analytics to speed up and digitize underwriting no longer make a clumsy process a valid excuse.

Technology has finally caught up with disability insurance. Insurtechs like Breeze have reduced quotes to seconds and applications to minutes.

It is also available entirely online.

Besides having a D2C side of the business, most of these turnkey insurtech platforms are primarily designed to be used by agents and brokers who want to effectively scale a new vertical product and manage it. in one place.

Finally modernized for today’s consumer, there’s no better time for insurance professionals to start selling disability insurance.

2. The ability to cross-sell

Disability insurance represents one of the smartest cross-selling opportunities for agents and brokers.

There is long-term disability insurance and short-term disability insurance, but the two can go hand in hand for the right consumer.

Long-term coverage often has a waiting period of around 90 days, which may be too long for some people who need a steady stream of paychecks to meet living expenses.

About Antoine L. Cassell

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