So far this year the trend in disability sales across the industry is down.  Our sales are projected to come in about the same as last year but with a quarter to go that is a soft prediction.  It seems that the primary reason for the downturn in paid disability premiums is the economy, both in terms of job loss and uncertainty in the job and capital markets.  DI sales are down double digit percentages with most DI carriers. 

 

Normally, recessionary times coupled with down markets would lead to more life and disability sales.  It is not true this time I believe because of the severe nature of this recession along with the length of time it has gone on with an uncertain end.  Individuals and companies are still buying product solutions and we have sold some really large premium cases this year, just not as many as in the past.  The key is to find a person or company who has the need and capital to be willing to make the purchase to solve the problem. 

 

 

We just finished a disability buy sell case for $20,000 of premium on a small firm who had wisely retained earnings for times like these when things are slow, which also gave them the time to do some planning that they were too busy to do before.   These are harder to find but they are out there. 

 

Another case that is close to closing is a larger medical practice with over 10 partners who wanted to cover the business overhead expense need.  We could not find a traditional carrier to take this risk but found a willing partner with one of our companies and this case looks like it will be in excess of $100,000 of premium.  Again we found a group that had a need and with their level of revenue versus the risk to each physician being responsible for their own assigned overhead even while out on claim prompted them to come to us for a solution.

 

With so many companies, we now represent seven DI carriers, and so many products, Disability Income, Business Overhead Expense, Disability Buy Sell, Key Person, Retirement Security, Business Loan Protector, Buy In Disability, Excess Coverage, Substandard DI and BOE, as well as many other applications we can find a solution to just about any need your companies or clients have.  We would consider it a privilege to help you design a solution for you and your customers. 

 

DI carriers have recently increased the percentage of income they will replace at most income levels.  In many cases these limits have gone up from $500 a month to over $1,800 a month based on income. 

 

Many clients could now purchase additional coverage even if their incomes have not increased. 

 

Give us a call and we can run a quote based on your particular situation. 

These two markets, which had been on a down turn in terms of higher premiums, lower benefits, and restricted definitions, have now returned to a more favorable place in almost every company's offerings.

 

Pricing has come down, issue amounts have risen significantly, and specialty own occupation coverage has returned along with age 67 and age 70 benefit periods.  Sales in this group until 2009 had been significantly on the increase. 

 

The recession seems to have caught up with the Medical Market as we have seen income frozen or even falling coupled with the uncertainty of health care reform and what it means to them has led to fewer sales in this group.  Of course that will pass in time and once this market returns to normalcy there will be a back log of sales to be made.

 

The dental market on the other hand seems to be strong as many people fearing they will lose their jobs and thus their dental coverage are getting in to have everything done before that happens.  Right now they seem to be doing very well in this economy.  Dentists are great prospects for personal DI as well as BOE; including the new Business Loan Protector Rider which can complete the payment a commercial loan in the event of a disability. 

 

There has been talk that there are many in the work force who are either working through the pain or sickness they have because they fear for their job or they realize they would not be able to survie on their current disability benefits.  Now is a great time to re-evaluate your clients DI plan to be sure it's adequate.  Remember, even if they have group LTD benefits through work they are likely eligible for more personally owned DI benefits as well! 

In spite of the recession we continue to offer qualify coverage and protection for any kind of disability risk you can come up with.  We expect to have a big last quarter and finish the year slightly up from last year in overall sales.  We thank all of you for making this a positive year for us when most sales organizations are down.

 

You, our producers, are the best in the business and we would not be where we are without your ongoing support and trust.  We hope your fourth quarter will allow you to reach all of your goals for 2009 and set the table for a great 2010. 

 

Thanks for all you do in bringing the various product solutions we represent to your clients.  In the words of Spock, may you all "live long and prosper."

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Phone  704-544-0405  or  888-298-7500

 

Fax  704-544-1706 

 

Physical Address  7401 Carmel Executive Park, Suite 205  Charlotte  NC 28266