If 230% commission on your business sounds appealing, keep reading! There is a ‘pot of gold’ that is yours for the taking.
Life and Health Insurance policies are being replaced on a daily basis. You are in a never ending battle to keep your clients satisfied with the rates they are paying for their coverage, and with the companies that supply the coverage.
When clients have an increase in their premium, you’re required to either; 1) find ways to justify the increase in premium or 2) find another carrier with a product that meets the clients’ needs, has a competitive premium, and then re-write the business.
And you do this year after year wondering if your clients could also be speaking with another broker who is trying to replace the coverage. All this, to keep your clients happy, and keep the renewal or residual commission coming in.
Or worry about it being replaced by another broker? What if there was a product that virtually all working clients truly need that would generate a commission every year with a persistency rate of over 90%?
That’s right – Disability Income. I know, you saw this coming.
You know it, and your clients know it. If your clients get sick or hurt and couldn’t work, there needs to be a plan in place to protect their livelihood – it’s our responsibility as insurance professionals to make this happen.
If you sell Non-Cancellable Guaranteed Renewable Disability Insurance, the rates are guaranteed never to increase – no explaining, or re-selling your clients on, an increase in premium. Several carriers make available to you offer a Guaranteed Renewable DI policy.
Once the policy is in place, Disability Insurance is never, or very rarely, replaced by another broker – and very likely to remain in force until your clients’ are 65.
Most carriers will pay a renewal every year the policy is in force. Some will only pay renewals for 10 years. One carrier pays 50% first year comp and up to 15% renewals for the next 9 years, with a 5% persistency bonus. That is 20% renewal for the 2nd through 10th policy years on top of the 50% first year payout, totaling 230% commission on your Disability Income business.
The cash flow doesn’t stop there – it’s followed by a guaranteed 3% renewal commission beginning year 11 and running throughout the life of the policy.
Offering Disability Income Insurance creates a whole new profit center. I’m still receiving renewal checks on DI business I wrote back in the 80s – I call it “Mailbox Money”.
If you are interested a guaranteed income stream from your book of business for years to come, and at the same time providing your working clients with peace of mind, I encourage you to contact your Disability Income Specialist to discuss a marketing strategy that will fit with your book of business, and help your clients secure this valuable protection.
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