It’s ironic. People with a history of medical issues are often the most likely to recognize the importance of paycheck protection, but their pre-existing conditions mean they may have a harder time securing coverage. Thankfully, there are disability insurance coverage options – and you can stand out by specializing in the medically impaired market.
Many Americans Are Considered Medically Impaired
A niche specialty can be a great way to establish yourself as an expert and stand out from your competition. The downside is that you’re limiting your focus, and if the niche is small, you might not be able to drum up enough business.
The medically impaired market is NOT small. In fact, it’s huge.
People can be considered medically impaired for a number of reasons, from mental health and substance abuse issues to a history of cancer, heart disease, diabetes and other ailments. The simple truth is that many people don’t fit into what insurers consider “standard” risk.
According to the CDC:
- In 2019, 5.5% of adults reported that they had been diagnosed with heart disease. Men are more likely than women to have been diagnosed with heart disease.
- In 2021, 1,777,566 new cancer cases were reported in the U.S. As of 2022, 9.6% of adults have been diagnosed with cancer at some point in their lives.
- 38 million Americans have diabetes. That’s about one in 10 Americans.
- More than one in five U.S. adults has a mental illness. Depression is particularly common and impacts 5% of adults.
- In 2020, 14.5% of people aged 12 and older in the U.S. experienced substance use disorder. That’s 40.3 million people.
Paycheck Protection Is Available
When a can’t work because of health issues, the combination of lost income and medical bills can lead to financial ruin. Many people with pre-existing conditions know this first-hand. In fact, the American Cancer Society says that nearly half of cancer patients and survivors have medical debt.
Many of these people probably wish they had insurance coverage in place when they got sick. They can’t go back in time, but they can secure coverage in case they experience another illness or injury in the future.
Unfortunately, people with pre-existing conditions sometimes assume they can’t qualify for coverage, or that the premiums would be prohibitively expensive. This can prevent them from even trying to secure coverage.
It’s true that the traditional underwriting process might not go well for individuals with pre-existing conditions. They could be denied coverage, or they could be charged pricey rates. However, coverage solutions are available – and you can help people with pre-existing conditions by showing them their options.
How to Secure Coverage for Clients with Pre-existing Conditions
One of the easiest ways to secure coverage for a medically impaired client is to offer simplified issued disability insurance.
Simplified issue disability insurance uses a streamlined underwriting process. There are no medical tests or exams, so it’s a great option for individuals with pre-existing medical conditions. It’s also less of a hassle to secure coverage.
If you’re waiting for the catch, you’re right. Compared to individual disability insurance policies that use traditional medical underwriting, simplified issue disability insurance tends to offer less comprehensive coverage. However, for individuals who wouldn’t be able to qualify for coverage that uses medical underwriting anyway, this shouldn’t be a dealbreaker.
Another option is to carve out the condition in question. For example, let’s say you have a client who is currently receiving treatment for depression. She has a high-pressured, high-income job and wants robust paycheck protection with a benefit period that lasts until she turns 65. The depression diagnosis could impact underwriting, but it may be possible to secure the coverage she wants with a two-year benefit limit for disabilities stemming from mental illness. This approach can also work for other conditions, such as cancer or heart disease.
Is the Medically Impaired Market the Opportunity You’ve Been Looking For?
If you’re looking for a new audience that’s especially receptive to the need for paycheck protection, you should consider the medically impaired market.
- Review the needs of your current clients. Pre-existing medical conditions are extremely common, so there’s a good chance that some of the clients you’ve helped with other products and services have medical issues and could benefit from disability insurance.
- Earn referral business. Your clients probably have friends and family with medical conditions. Let them know that you can help with coverage and try to drum up some referral business.
- Spread the word. Use your website and social media to reach an even bigger audience.
Are you ready to start serving the medically impaired market? Download this handout to see why No Is Never the Answer.
