Follow these tips to grow your book of business in the nonprofit insurance sector
More than 1.5 million non profit organizations are registered in the U.S., says the National Center for Charitable statistics. And they all need nonprofit insurance coverage.
With 20.3 million people living in the New York Tri-State area, it’s safe to say a proportionate number of those non profits are based right here. And, just like your small business and large corporate customers, they are looking for low premiums, high-quality insurance coverage, and stellar service from their non profit insurance brokers.
Employee Benefits Help Compensate for Lower Pay
Non profit workers are traditionally paid less than their counterparts at for-profit companies. Owners of non profit organizations must tread carefully because they could face fines if the IRS deems their employees’ salaries “excessive.” Not only do nonprofits have less money to pay out—because their funding comes from supporter donations—but employers opt to err on the side of caution with employee salaries.
In order to find the best people to help them achieve their mission, non profits must look at other ways to attract and retain top employees. And that’s where insurance for non profit organizations comes in, especially when you are talking about enriched DBL and ancillary benefits. Most non profits have smaller operating budgets than corporations, including less money to pay out for employer-funded benefits like healthcare. But voluntary, employee-funded benefits like group life, vision, and dental coverage deliver great value at a low cost to employees.
Why You Should Consider Selling Insurance for Non Profit Organizations
Non profits go beyond foundations and mission-specific charitable organizations. They may include hospitals and universities, and other important business-oriented organizations with large teams and hefty operating costs.
Not only can non profits be a valuable sector by themselves, but selling not for profit insurance can also attract local business leads and new clients when your non profit customers spread the word to their members and volunteers about the service you deliver. Local networking groups such as your Chamber of Commerce, Lions’ Clubs, and Kiwanis are all non profit organizations.
Are you ready to start selling insurance for non profit organizations?
4 Easy Steps to Selling Insurance for Non Profit Organizations
To successfully sell not for profit insurance benefits, you need to understand what motivates the employees. Value-driven millennials often seek work with non profit organizations, because they want a career that makes a difference in the world along with providing a paycheck.
Employees are often willing to accept less pay because the intrinsic benefits of the job win out in the end. But, once reality sets in and the rent comes due, top talent may quickly be recruited away with promises of a hefty salary, ancillary benefits, and exciting perks in the corporate world.
A non profit may not be able to match a Fortune 500 in terms of pay. But non profit insurance brokers can offer something equal in intrinsic value and help organizations recruit and retain top talent by following these four steps.
- Research the mission and values of the organization.
Any good salesperson knows how it important it is to understand your audience. And the non profit group tends to be passionate about their beliefs. If you are working with an animal rights organization, for instance, mention your family pets you adopted from a rescue.
If you are working with an organization that supports eco-tourism,, and can off-handedly mention your Prius, they will understand you are aligned with their values. They will also love the efficiency of getting nonprofit insurance quotes online, without the hassles of paperwork.
Once you’ve made that personal connection, how do you make the leap to insurance products? By tapping into what’s important to non profit employees, you can show them the employee benefits that will help enhance their lifestyle by saving them money.
- Sell employees on the lifestyle benefits.
Millennials — especially those who choose to work for non profits—treasure a work/life balance and want to make a difference at work and at play. Saving money on dental and vision costs may free up cash so they can travel more, for instance, or adopt another pet from the animal rescue.
A good life insurance policy will provide peace of mind to employees starting a family. And a 401K will give them the financial freedom they need to continue supporting their favorite causes, through donations or volunteerism, into their retirement.
- Educate employers about the advantages of low-cost ancillary benefits.
Recruiting and retention is a major challenge for executives in the non profit sector. Smaller organizations may not have an HR director who understands the specifics of employee benefits packages, how they are structured, or what’s available.
They need a non profit insurance broker they can trust to explain how ancillary benefits can be bundled with mandatory coverage for maximum savings, and how these benefits can be used as important recruiting and retention tools to keep top talent.
- Make sure employees and employers understand exactly what they’re getting, how much money it can save them, and how it can enhance their lives.
Don’t assume anyone in the organization understands the value of employee benefits. Hold a lunch-and-learn seminar, make information available on your website, let employers and their employees, alike, know you are available for questions.
Bottom line: Making insurance for non profit organizations part of your book of business involves a large amount consultative selling. Make sure prospective clients understand that these are employee-funded, voluntary benefits that cost very little compared to the money they will save over their lives.