Worksite Marketing
Get Your Clients on the Multi-life Disability Bus
by Sharon Stark, LUTCF

The bus for group benefits has pulled away and left millions of people with gaps in coverage. Oh, and look, a colleague just swerved past you in the race to the next worksite sale. But, what about those standing on the side of the road waiting to be picked up? Why are they left unattended?
   The short answer is that many in the disability insurance market don’t know how to get into group benefits and may not think that it is worth their time. Competition is fierce and the highway is crowded with 18-wheelers. Have you considered taking the ramp called “multi-life disability income protection?” It may be free of traffic and paved with referrals. Here are some driving tips:
   Don’t think of the worksite as a sale to a company with 500 employees. Begin with one person -- an employee, an HR professional, or the owner. It doesn’t matter. Explain the importance of income protection. Get to know the benefits under the employer’s group long-term disability plan.
   Explain disability benefits and restrictions under Social Security. Explain that Worker’s Compensation only provides benefits to those injured on the job. Point out that employer-provided group long-term disability benefits are typically taxable to the employee. If your prospect is a highly compensated employee, highlight the group long-term disability plan cap and the fact that bonus income is rarely covered. Lastly, throw in a dose of reality with some sobering industry statistics or stories of those suffering a disability.
   Now that you’ve gotten the client’s attention, be prepared to answer the questions we all ask, "How much will it cost, and how much should I buy?”
   Run two quotes -- one at an individual rate and one at a multi-life rate. An individual’s premiums on a multi-life basis are usually 25% less than the same coverage on an individual basis. Once you demonstrate the differences in rates, the prospect will ask how to get access to the multi-life rate. The only way to do so is to get multiple lives (Other employees at the company who may also have a disability income protection gap). The employer has to agree to participate in order to get a multi-life rate. Depending on the size of the company and the responsiveness of the HR department, a group of employees could request disability income insurance with a multi-life rate. Now the discussion has changed lanes and you are in the fast lane to referrals.
   Ask your prospect to introduce you to at least two other employees with a similar gap in coverage. Also, ask your prospect to introduce you to the HR professionals who administer the group term plan to discuss offering disability income insurance protection on a voluntary basis.
   Occasionally, the company’s key decision maker can be a straight path to a multi-life sale. It happened to me. I was working with a business-owner client who was concerned that his group long-term disability plan was inadequate. He wanted to purchase supplemental disability income insurance to close the gap. We showed him what he could buy on an individual basis and multi-life basis. The rate difference compelled him to buy coverage for himself and all of his employees. He even paid a portion of the employees’ premium.
You can get to the group through a key employee benefits decision-maker or HR professional. There are many ways to gain access to these people. Join your local organization for HR professionals. Members of these groups are often willing to share what is most important to them in benefit packages.
   Human resource professionals can make or break a sale. They are usually quite savvy about products; are particular about carriers; and they are often overworked. Learn as much about the company as you can from one of these HR professionals before you present a product proposition.
Benefit administrators and HR professionals often have the information you need to determine what product portfolio and carrier to recommend. For example, you need to understand the company’s employee benefit plans to determine how supplemental disability income protection would fit in. What worries benefit professionals about the coverage? Does it have any gaps? Would they want a guaranteed-issue product? What does their census look like? Is the company so invested in providing health and welfare benefits that they would only consider voluntary programs?
   Voluntary programs are appealing on many levels. They allow an employer to add a valuable benefit with minimal effort and no cost. Also, there is no administration. Employees can even be billed directly. Some disability carriers have added benefits beyond income protection, such as an employee assistance program at no additional cost.
   In addition to knowing the ins and outs of the current benefit plan, ask the HR professional about the company’s culture. Cultural fit, which is a major part of a worksite sale, is often overlooked. How technologically sophisticated is the company? Would the company benefit from an online education and application processes? Does the benefits administrator appreciate online access to application data on a real-time basis? Does the company prefer payroll deduction, group electronic billing, or direct billing? Does the company want tailored marketing and communication approaches? All of these questions are very important in helping you determine the product and carrier to present.
You need a commitment from the company in order to be successful in any worksite marketing arrangement, whether it is with five employees or 500. For larger scale, guaranteed-issue cases, the benefits administrator should allow you to present at group meetings and conduct one-on-one follow-up meetings with employees. If you aren’t invited to meet with employees, you will be operating in the breakdown lane. In a group meeting setting, you can draw attention to the need for the benefits, which is sometimes lost in a worksite sale. It also allows you to show how supplemental coverage can help complete an income protection plan.
   Another way to enter the worksite-marketing arena is by doing joint casework. Hitch a ride in the 18-wheeler you thought was blocking your way. Working with a group representative may help you break into the worksite case. They tend to focus solely on the plans they are implementing and often overlook the need for individual coverage beyond what is offered at the group level. Those who are already in the field may be willing to provide back-office support on cases.
   If you think the worksite-marketing lane is too congested, consider this -- you don’t need a bus to pick up clients. You can get into the high occupancy lane with only three people in a minivan. Don’t be intimidated by the term “worksite marketing.” It doesn’t have to mean administering a case with 500 lives. It could mean selling disability income insurance protection to three highly paid executives whose group protection plans fall woefully short of covering their needs.
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Sharon Stark, LUTCF is a worksite practice consultant with Massachusetts Mutual Life Insurance Company (MassMutual). Stark has been in the insurance industry for 21 years. She has worked with many companies and associations, educating them on the importance of protecting their ability to earn an income. She has published numerous articles on the importance of disability income insurance protection and has been a speaker at many industry functions including NAIFA and NAHU events. For more information, e-mail sstark@massmutual.com.