In our last post, we spoke about using ancillary benefits to help reduce the financial stress that’s placed on employees.
This is especially crucial for employees in the New York tri-state area, which includes regions with the highest cost of living in the country. An accident or illness can leave an employee’s finances depleted. The New York State minimum for DBL coverage hasn’t kept up with inflation and isn’t enough to live on. In fact, the statutory disability benefit in New York has not increased since 1989.
The Rule of 72, for example, states that a specific dollar amount invested at an annual fixed interest rate of 10% would take 7.2 years to double. Yet, in 30 years the DBL benefit has remained the same.
Why not enrich DBL for a very low cost, ramping up the ROI on the investment?
Enriching DBL helps this important benefit keep pace with inflation to cover more of an employer or employee’s living expenses if they are ill or injured.
Consider the Needs of Your Customers
While it’s important to consider hourly workers who may be living paycheck to paycheck, it’s also important for brokers to consider the needs of company owners and top-level employees, including CEOs, CFOs, and HR managers, who make the buying decisions when it comes to employee benefits.
Of course, c-level executives want the best benefits for their employees to improve morale, maximize productivity, and aid recruiting and retention. But if you can also sell decisionmakers on the benefits that also serve their best financial interests, you’ll earn their lifelong trust.
Twenty years ago, Governor Mario Cuomo voted to increase the statutory disability benefit. His son, Andrew Cuomo, decided not to increase DBL. Instead, he introduced Paid Family Leave as a statutory benefit in New York.
But PFL – while it’s undoubtedly an important benefit – doesn’t apply to a vast majority of workers. Many middle-aged and older employees are past child-raising years and have already faced the loss of their parents. People in these demographics, especially middle managers and top executives, need benefits that will appeal to their needs.
Enriched DBL is a “set it and forget it” benefit. Once a business owner enhances their short-term disability benefits in New York, they will renew automatically each year. They aren’t likely to go back to the state minimum benefits.
Why Is Enriched DBL Such a Good Investment for Company Executives?
Many business owners and executives have savings and investments to cover a worst-case scenario such as an accident or illness that could leave them unable to work.
But, in fact, enriching DBL can be the smartest investment company leaders can make.
If it takes 7.2 years to double your income from investments at a rate of 10%, you don’t want to pull that money out to cover your living expenses.
Enriched DBL allows employers and employees – from c-level executives to hourly wage workers – to keep their savings where it is and receive a rate-of-return on their insurance premium that is far beyond any investment.
If a company enriches DBL by 5X, they will only pay $9.75/mo/male in premium and $11.50/mo/female, and if they need to make a claim, receive $850 per week for up to 26 weeks.
When you show your customers the math – and the benefit of leaving their investments growing – they will ask you to enrich DBL for their own financial peace-of-mind.
Build Relationships with the Right Advice
Smart insurance brokers are serving two customers – the employees who use the benefits, and the company owners and HR executives who are making the decisions on what benefits to offer.
When you can open doors to give them a low-cost, high-return benefit that appeals to employers and employees alike, you can gain trust and earn their business for life.
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by Michael Cohen
New Jersey has some of the best mandatory temporary disability benefits (TDB) in the country for its employees, offering two-thirds of the employee’s weekly wages up to $615 per week for a maximum of 26 weeks. If you’re a New York Tri-state area insurance broker, you may wonder why you’d bother selling privatized TDB insurance to businesses in New Jersey.
Our servicing General Agency works in conjunction with preferred private insurance carriers we represent to find you better rates than the NJ Department of Labor, which fluctuates on an annual basis. But almost more important than the savings, by privatizing your TDB insurance offerings for certain customers and bundling it with other ancillary group benefits, you can lower your customers’ insurance premiums on all their benefits while increasing your commissions.
Sounds compelling, right?
At the same time, you’ll enjoy a higher quality of service through The DBL Center and our highly experienced back office staff who is here to serve yours and your clients’ needs. We’ll answer questions about claims, and always ensure you’re getting the best value in your insurance coverage for your clients.
Let’s explore some of the ways you can earn more commission with ancillary group benefits and privatized TDB coverage in NJ.
It’s no secret that many employees (and employers, for that matter) are upset by the affect the Affordable Care Act had on their healthcare coverage. Increased premiums, higher deductibles, and fewer choices in carriers may cause talented, in-demand employees in competitive fields to hunt for jobs with better benefits.
The only up-side is that ancillary benefits are now an easier sell. Employees might be paying more for healthcare coverage, but they can get a better value on vision or dental coverage – which may have, previously, been part of their healthcare plan.
Insurance brokers can save the day for business owners, CEOs, HR directors, and employees, with benefits that employees want at premium rates they can afford. At the same time, you’ll earn more commission because you’re selling larger benefits packages, without adding new customers. You’ll save time and increase your earnings all in one step, with The DBL Center beside you for support every stepof the way.
When you write NJ TDB policies with a private carrier through InsuranceWholesaler.net, you’ll enjoy the white label, white glove service The DBL Center is famous for. We become your full-service, back-office support staff, while your customers associate the stellar service with you and your firm. Your customers will get more flexibility in how and when benefits are paid, and you can even increase the amount of coverage with just a small increase in premium rates.
When you write your TDB insurance policies, plus ancillary benefits such as Group Life / AD&D, long-term disability, short-term disability, Dental and Vision through The DBL Center, you’ll earn additional discounts for your customers, with no extra work by you, the broker. Just like bundling your home phone, cable and internet under the same provider offers you discounts, or writing your home and auto insurance under one policy gives you lower rates, bundling employee benefits nets big discounts, happier customers – and overall higher commissions because you’re expanding your book of business with very little extra work.
If you’d like more information on how privatized TDB insurance in New Jersey can benefit you and your customers, contact The DBL Center.
Are you an insurance broker who has seen your commissions drop due to the Affordable Care Act and health insurance providers’ new policies? Struggling with falling commissions and uncertainty about the future of the industry, two years ago 49 percent of insurance brokers were thinking about leaving the industry, while 67 percent said they knew someone who had, according to the Aflac Workforces Report for Brokers.
Finding Profits in Ancillary Benefits
But for those who stayed the course,. Your customers will love ancillary benefits like vision, dental, life, and enhanced disability insurance because it gives them an “extra” to provide to their employees in the face of healthcare cuts. And you will like ancillary benefits for the added commissions and multi-line discounts that make it easier for you to purchase these products from one carrier, saving your customers money and streamlining paperwork and administrative costs for you.
Consultative Selling: The Key to Ancillary Benefits Sales
But it’s important to remember these benefits don’t sell themselves, and a consultative approach is a proven method to closing more deals. Rather than the traditional features-and-benefits approach, consultative selling is a more active sales technique. Initially, it may take some time to establish trust and get your customers onboard with your recommendations. But once you’ve established that relationship, it’s easy to sell them the ancillary benefits to meet their needs and budget and nurture the relationship through continued service.
How To Shift to Consultative Selling
Consultative selling focuses on identifying your client’s needs and choosing the solution that meets those needs best. “Consultative selling means brokers will need to show that they have a high level of knowledge about the product,” writes Jeff Kolesar in an article published at LifeHealthPro.com. “That knowledge will create a bond between the buyer and seller allowing brokers to recommend ancillary options once the big medical decision has been made.”
Although healthcare insurance has become difficult and complicated to sell, ancillary benefits haven’t changed in recent years. The options remain straightforward and profitable. It’s all a matter of learning about the different carrier choices and finding the bundled plan that appeals to each customer. With that difficult step done, the insurance sells itself because your client already trusts your recommendation. But how do you get to that point when you’re already strapped for time and trying to make bigger insurance sales, faster? That’s where your insurance wholesaler comes in.
It’s All About the Service
Consultative selling is all about the service you provide as a knowledgeable insurance consultant (hence the name…) for your customers. In his article on ancillary benefits, Kolesar writes, “I recommend leveraging your carrier expertise, where possible. If brokers are strapped for time, they should partner with a carrier that’s equipped to step in and answer questions.”
At DBL Center Ltd., we provide the knowledge of not just one, but multiple carriers, so you can give your customers more options and better prices. We serve as your back office, shopping the various carriers to find the best plans to offer your customers. We share our knowledge. You establish trust through that knowledge and then sell the products. We all win. Your customers get the ancillary benefits they want, we provide white-glove service, and you cash the big commission checks.
Start cashing larger commission checks right away with ancillary benefits:
Get the white glove service you deserve with DBL Center Ltd.
by Dawn Allcot