A Closer Look at Pricing
Sometimes three policies are cheaper than one.
Here’s how one executive saved herself $1,400 per year off her policy premium and provided valuable protection for her employees…
Kristen Robinson is a C-Corp executive and has two employees, both of whom
are clerical. She contacted her agent Rhonda Johnson because she wanted
Disability insurance for herself. Here’s what Rhonda quoted:
Disabling Definition: ......................... Transitional Own Occupation
Benefit Amount: ............................... $4,000
Elimination Period: .......................... 90 Days
Benefit Period: ............................... To Age 65
Policy Features: ............................. Non-Can, Residual, COLA, FIO, CAT = $8,000
Annual Premium: ............................ $4,168.40 |
When Kristen received the quote,
she was stunned by the price.
Although she understood the need
for disability insurance, she hadn’t
expected to pay so much for
protection. Rhonda wisely calculated the
daily cost of the policy and compared
it to the daily cost of her car and
home insurance to put things into
perspective. The daily cost of the
disability policy was $12.15 While
that made sense, Kristen was still price
resistant. When Rhonda asked, she said
that she would prefer to spend under
$10.00 per day on a policy.
Kristen brought the case to the experts
at the Smith Company. They
proposed a solution that saved Kristen
$1,400 per year off her annual
premium, and allowed her to provide valuable protection for her employees, all with in within her preferred budget.
What did they do? First, here’s what they DIDN’T DO:
- They didn’t water-down the disabling definition.
- They didn’t extend the elimination period.
- They didn’t shorten the benefit period.
- They didn’t remove important policy features.
Here’s what they DID: They added
Kristen’s two clerical employees to the
policy, taking advantage of generous
multi-life discounts. Kristen kept
exactly the same coverage as
originally quoted, Her employees
received policies for $1,500 per month,
a 365 day Elimination Period and a 5
year regular occupation protected
Benefit Period.
The total annual premium for all
three lives was $3,236 - a whopping
$932 less than the original individual
case. Kristen has the rock-solid
protection she needs and her
employees have one more reason
to stay with her. She provided
generous disability coverage at
almost no cost by including each
of their respective premiums,
roughly $243 and $224, into
their taxable income at the end
of the year as a bonus. It’s a
win-win for Kristen, her employees,
and her disability agent.
What’s more amazing than the
savings illustrated by this case, is
the fact that these kinds of multi-
life discounts are available every
day, yet are rarely taken advantage
of. Disability Insurance Carriers
routinely offer discounts of 10 to
30% for multi-life cases.
Don’t overlook such Opportunities!
Disability Income Insurance Illustrations for this example.
Download Illustration 1
Download Illustration 2
