Are you conducting GSI disability insurance annual updates? Guaranteed standard issue disability insurance (GSI DI) is a practical way to help a group of employees secure paycheck protection. By insuring multiple people at a company at once, everyone can all benefit from streamlined underwriting and a multi-life discount. However, the more people you insure, the greater the odds that coverage needs will change over time. Annual GSI DI reviews and updates can ensure that everyone’s coverage is maximized.
How Guaranteed Standard Issue Disability Insurance Works
Guaranteed standard issue disability insurance is a long-term disability insurance coverage option available to groups of five or more employees at the same company. It’s similar to individual disability insurance, but there are some key differences.
- Compared to individual disability insurance, GSI DI offers less flexible coverage options. Policyholders may not be to secure the same benefit periods, coverage levels and riders that they could with an individual disability insurance. This is the downside to GSI DI.
- Unlike individual disability insurance, GSI DI provides streamlined underwriting. This is a huge advantage, especially for people who have pre-existing conditions and want to avoid medical underwriting.
- Groups that qualify for GSI DI coverage also typically qualify for a multi-life discount. This can help policyholders save 10%, 20% or even more on their disability insurance costs.
Although workers may be able to secure more robust coverage with individual disability insurance, GSI coverage provides a phenomenal value thanks to the multi-life discount and easy application process. For people with health problems, it may be the best way to secure affordable coverage.
For insurance agents, selling GSI is also worthwhile. Yes, it can take a little more work to get everyone organized and on the same page, but once you convince one or two employees to purchase coverage, they may also pitch the idea to their coworkers, and people who would normally turn down coverage might not be able to resist the discount and simplified underwriting. This means you make more sales and earn more commissions.
However, just as you need to review the coverage needs of your individual disability insurance clients periodically, it’s also important to review the needs of your GSI DI clients periodically – and the fact that more people are involved means there’s even more to look at.
How to Conduct a GSI Annual Review
After you sell GSI DI coverage, the policies go into force, and you receive your commissions, you’ve earned a celebration – but your job isn’t done. Your clients may have questions, so it’s important to leave the lines of communication open. In addition to leaving copies of your business card and inviting them to contact you with any questions, you can reach out occasionally to see if they need anything. This way, you’ll stay top of mind if they need additional coverage.
Reaching out is especially important around the one-year mark. Put this in your calendar so you don’t forget to conduct a review. Once it’s time, reach out to your clients and schedule some quick meetings.
When you conduct your review, focus on the following two questions:
1. Are There New Employees Who Need Coverage?
Most companies experience employee turnover over the course of a year, so there’s a good chance there will be several new employees in need of coverage. This is a great opportunity to offer GSI DI coverage to the new group of employees – before another agent beats you to it.
2. Have the Existing Employees Received Pay Increases?
In addition to regular cost-of-living raises, some employees may have received promotions and big raises. If their pay has gone up significantly, they may need to increase their disability insurance coverage to ensure that they still have adequate protection.
Are You Maximizing GSI DI Coverage?
If you’re offering GSI DI coverage, conducting an annual review is the smart way to maximize coverage for your clients, earn additional commissions, and avoid losing business to another agent. And if you’re not offering GSI DI coverage, now’s a good time to start. Learn more about guaranteed standard issue disability insurance.
