Are your clients looking to make up the gaps left by the Affordable Care Act (ACA) in their employees’ benefits packages? Are you a health insurance broker looking to replace revenues lost as a result of ACA? Or maybe you’re a Property & Casualty broker specializing in disability benefits who spots opportunities created by ACA in today’s insurance market.
Whatever your reason, if you’re considering selling ancillary benefits, you might be hesitating and wondering if it’s a good idea. As a wholesale insurance broker celebrating our 40th year in business, we’ve followed the vicissitudes of the marketplace and we can tell you that right now is a good time (perhaps the best time in history) to sell ancillary benefits to your customers. Here’s why.
1. Your customers, and HR directors in particular, are scrambling to find ways to fill the healthcare gaps left by the ACA.
As a result of the ACA, many employees’ and business owners’ healthcare premiums went up, while the level of benefits went down. In many cases, dental and vision coverage, especially, became cost-prohibiitive under existing healthcare plans.
While accountants, controllers, and CFOs seek to control costs, HR directors look for ways to reintroduce these lost benefits. Ancillary benefits purchased through a disability insurance broker can make both departments —along with employees and business owners who will benefit —happy.
2. Ancillary benefits are an easy upsell to a robust benefits package that includes enhanced DBL or TDB coverage in New York State or New Jersey.
If you’re already selling enhanced DBL and TDB coverage, and you’re using consultative selling to earn the trust of your clients and increase their benefits, ancillary benefits that include vision, dental, and Group Life / AD&D coverage are an easy upsell to earn greater commissions with less work.
3. Give your customers greater discounts when you bundle ancillary benefits with enhanced disability coverage.
After facing increased healthcare premiums, employers and employees alike are looking to save money. You can help by offering bundled policies from the same carrier that includes enhanced disability benefits, vision, dental, and Group Life / AD&D. Your clients will love having one point-of-contact to deliver an exceptional service experience and save them money, too.
Expand Your Book-of-Business with Ancillary Benefits
Really, it comes down to this: Bundling ancillary benefits with disability coverage enables you to expand your book-of-business and earn more commission without increasing your workload or your number of accounts.
It costs five times as much to acquire a new customer as it does to retain an existing one, statistics show. If you can retain customers and sell them additional products to increase your commissions without the costs associated with acquiring new business, you can literally sit back and watch your profits grow – especially when you have The DBL Center serving as your back-office staff to manage those accounts.
The Importance of Ancillary Benefits for Today’s Businesses and Brokers
Ancillary benefits fill a much-needed gap for employees, employers and insurance brokers right now. If, until now, you hadn’t considered selling these benefit to increase your commissions with minimal effort, The DBL Center can connect you with top-rated carriers offering competitive rates.
Now more than ever, disability insurance is just the beginning.
by Dawn Allcot
With the profound effects of the Affordable Care Act (ACA) on the insurance industry, smart insurance agents are looking to ancillary benefit sales to make up for lost profits and earn more commission with less work. (Let’s be honest… isn’t that an ideal scenario for everyone?)
The fact is, few people – from insurance agents to HR directors and small business owners – are happy with the side effects of the ACA. Benefits have been reduced, deductibles raised, and out-of-pocket expenses for both businesses and their employees have gone up. Insurance agents, employees, and business owners are getting less for more.
Fortunately, long-term disability coverage (in the form of NYS DBL coverage, NJ TDB insurance, and Hawaii TDI) as well as ancillary benefits like Dental and Group Life/AD&D insurance are helping business owners and HR directors make up for the benefits loss in other ways, enabling them to continue to recruit and retain top talent, while allowing insurance agents to earn additional income.
Through our best-in-class carriers, The DBL Center offers a variety of ancillary products and enhanced disability benefits packages that make it easy for insurance agents to upsell to existing customers.
In a recent survey, 68 percent of employees polled about benefits wanted dental coverage.
Yet, fewer than half of small-to-midsize businesses offer this benefit, says DBL Center Partner Michael Cohen. Since a healthy smile can also lead to greater success, especially in organizations with a heavy emphasis on sales, dental coverage represents a win-win-win for employers, their employees, and the insurance agents who sell dental insurance as part of an ancillary benefits package.
Long-Term Disability Coverage
The coverage goes by different names in different states but, whatever the name, enhanced disability coverage provides more than the state mandated maximum for income replacement if an employee is injured, ill, or gives birth. (This is not to be confused with the new Paid Family Leave coverage New York is phasing in through 2021, which provides paid time off after the birth or adoption / fostering of a child, or to care for an aging loved one).
It’s easy to see why this is a “win” for insurance carriers, because the claims are less frequent than, for instance, medical or dental coverage, and end after a specified time period. From an insurance agent’s perspective, you can offer your customers a lot of additional coverage for a small amount of money so they can see that it’s a good investment. Tiered plans give executives – the decision-makers when it comes to purchasing benefits plans – the greatest amounts of coverage.
Group Life / AD&D Coverage
Another popular “upsell” for insurance agents who are already offering their customers health care and disability coverage, life insurance policies can offer substantial coverage with a low, pre-tax investment. Again, tiered plans give executives the best coverage available. Employers can choose to match employee contributions, or simply offer low out-of-pocket premiums to employees.
Consultative Selling: The Key to Higher Commission
Adding these ancillary benefits and enhanced disability coverage to your existing policies isn’t hard using a consultative selling approach. By offering top-level, white glove service to your customers through The DBL Center’s back office, you’ll solidify the trust they have in you. From there, you can review the best benefits packages and make recommendations that fit your client’s unique needs, based on the demographics of their employees and their individual needs.