Case of the Week
Case studies to help you target sales

Highlighted case:Multiple Individual Disability Income (DI) insurance policies and the Multi-Life Discount in California

How was this client acquired? The employer is a current client for group benefits.

What was the problem/need the client had?  The  company was expanding to include four additional partners (in addition to the current four partners).  Due to a contract now in place for the partners, the company needed to make sure disability insurance was in place.

What was the recommended solution?  
After looking at group disability insurance and individual disability income insurance, the producer identified Individual Disability Income (DI) insurance as the right product.

The producer made this recommendation due to:

• Small size of the group being covered 
• Specialized skills of the partners  
• Portability aspect of Individual DI insurance

And, since more than three employees with a common employer were being covered, the company benefited from the 20% Multi-Life Discount (based on unisex rates).  Plus, due to their profession, the partners received the 10% Select Occupation discount.

See how the company saved with the Multi-Life Discount

Compensation potential - $26,341.18 annual premium generated (for eight Individual DI insurance policies), which equates to $13,171 in first year commissions and potentially $21,125 in renewal commissions over the next ten years (assuming 100% persistency and no annual coverage increases).

The producer is also eligible for the Quality Producer Bonus ($1,317), as well as the Quality Business Bonus ($4,885 over five years).

This opportunity has also opened up other product sales for the producer through individual planning with a few of the partners; estimated ICCs for this work is approximately an additional $25,000.