When looking for the ideal client a couple of questions need to be answered.
Are they readily available?
Do they have insurance needs and opportunities?
When it comes to business owners, the answer to both questions is a resounding “YES”. More and more small businesses seem to be popping up all over the place, whether it be a nail salon, a mechanic shop or a store front retail location, they are everywhere you look. Now to the second question, do they have insurance needs? I think you’d agree there is an abundance of opportunities in each of these businesses. To name a few they will need property insurance, liability insurance, life and disability insurance to potentially fund buy sell agreements, possibly group insurance, etc. They are also a great source for referrals as many business owner know other business owners or have employees who also need your services.
The question then becomes how to approach them. LIMRA stats tell us that 90% of advisors sell life insurance only with 10% selling both life and living benefits. If that is the case why not stand out from the crowd and position living benefits as the first solution it is likely something they haven’t considered in the past and will give you a new story to tell.
However, which living benefits products do you position first? Let’s consider the biggest concerns for the average business owner. They have spent years to develop and grow a business into something that is not only profitable but also something they love to do. Why not use that passion they have for their business as a foot in the door by positioning Business Overhead Expense Disability Insurance. Why Business Overhead? First off it’s something they likely haven’t heard of in the past, second it protects what they care about, and third the premiums can be written off as a business expense and still have the benefit amount be tax free at time of claim (this is because most carriers have structured their plans as expense reimbursement at time of claim). Sounds like a great offer for a business owner.
Once that is in place it’s an easy transition to ask for other referrals (“Do you know other business owners who would find this type of coverage valuable”) or other opportunities within the business itself (“now that we have your business protected, I would imagine your personal income would suffer if you became disabled, perhaps we should look at a plan to protect that as well”, or “I noticed you have 5 employees, have you considered benefits for them?”).
Your BD team at QFS can help you to build out solutions for your business owner clients.
Senior Business Development Specialist
Qualified Financial Services