An “amazing” opportunity is open to insurance brokers — at least according to one industry veteran.
Despite widespread industry fears of shrinking revenues, Steve Brady, second vice president of individual disability insurance sales for Portland, Ore.-based Standard Insurance Co., says that with a slight shift in focus, the future can still be bright for brokers. Long-term disability policies can help replace the revenue stream from health sales that could be dammed by the implementation of certain provisions of the Patient Protection and Affordable Care Act, he says.
Despite the importance of DI, many still court disaster by remaining uninsured — which leaves a big market behind.
According to information compiled by the Council for Disability Awareness, about one in four of today’s 20-year-olds will become disabled during their working years. And though claims statistics indicate disability incidences last between two-and-a-half to three years, “65 percent of working Americans say they couldn’t cover normal living expenses even for a year if their employment income was lost, and 38 percent could not pay their bills for more than three months.”
"It’s not like life insurance, where I love somebody else so I’m going to give them some money if I die. Disability is a selfish purchase. So we talk about, what is your standard of living? What are your needs if something were to happen to you? As active as a 28-year-old is, there’s lots of things they can picture that might slow them down, or stop them from being able to work. So you talk about, ‘What are you worth?” Well, if you’re making $50,000 a year now and you’re 28, [during the working years] even without a raise you’re going to make a few million dollars. Have you thought about that before? And if you can’t make that few million dollars because of a disability, we’re here.
“It’s not a difficult sale,” Brady says. “Usually they can picture disability more than they can picture death.”