“Round up the usual suspects” is just one of many memorable lines from the classic movie Casablanca (celebrating its 75th anniversary).
Developing target markets for disability insurance often starts with the usual suspects, such as physicians, dentists, and executives. However, these occupations just skim the surface of those in need of income protection. A deeper review reveals cross-selling opportunities to even larger groups.
For example, married couples are usual suspects. However, single clients, may be more in need of paycheck protection. This group of unusual suspects is the sole household income source. There is no other paycheck to fall back on. Single people, those never married, divorced, separated or widowed, comprise more than 45 percent of our population. More than half, 53 percent are women. Single heads of households with children is about a 75/25 ratio of women to men. With or without children, 47 percent of households are headed by singles.
Since many singles are women, let’s focus on what we know. Fidelity Investments conducted several studies about the financial preferences and behaviors of women. Most recently, the Single Women & Money Study reveals that, despite the almost unanimous belief that financial planning is important, only 28 percent have worked with a financial professional to identify risks and establish a plan. The majority (53 percent) of single women have a three to six-month emergency fund. Across the board, single women are concerned about longevity risk and depend on retirement plan contributions to fund retirement years. Despite the fears, women may not be protected or are under-protected for lost income due to an injury or illness. Yet we know that compared to men, women have a higher risk of disability and are disabled longer.
Regardless of gender, talk to your working single clients about a combination of supplemental disability insurance and disability retirement security insurance. Without these protections, the near and the long-term financial futures are at considerable risk. An unshared risk borne entirely by the single client.
The bottom line: As you prospect on an ongoing basis, look for clients who are unusual suspects, in need of a comprehensive disability insurance program. Beyond single people, some recently covered unusual suspects, include commercial pilots, professional athletes and radio and television personalities, and clients with high deductible health insurance plans.
Your DIS representative will prepare a quote with a combination of products, customized for your client’s needs and budget. Call us and let’s get started.