Competition Expected to Grow in Disability Market

Although the outcome of the health care reform is uncertain, the need and demand for Disability insurance is inevitable. According to the National Association of Health Underwriters (NAHU), nearly 33% of all Americans will suffer a serious Disability between the ages 35 and 65 that will last for an average of more than five years. The single largest generation in history, the Baby Boomers, reaching nearly 79 million people, currently falls within this age range, meaning nearly 26 million people will need Disability insurance in the next 20 years. Also, by the time the Baby Boomers have exited the largest group of Disability risk, their nearly 80 million offspring born between the years 1982 and 1995, known as the “Echo Boomers,” will begin to enter the age range.

Not only will agents see an increase in demand for Disability plans, but supplemental products as well. Despite its best intentions, government-run healthcare inevitably restricts access and reduces choice of healthcare options. For those looking to preserve access, quality and choice of care, they will need to purchase supplemental coverage in order to maintain independence. Regardless of the outcome of the current debate, people will start shopping for options now in order to prepare for possible future legislation.

James Wallace, founder of TWG Capital – a leading financial provider focused exclusively on the insurance industry since 2000 – urges Disability agents to ramp up their marketing, staff and products in order to stay competitive in the opportunistic years to come.

“There is such a great opportunity to create and market new bundles of products to the different segments of the Baby Boomer generation,” Wallace says. “With such a wide range of Boomers, Disability and supplemental products insurance providers need to be creative in their development of next generation plans to meet the needs of each segment. The amount of competition to emerge in the market is significant.”

With an increase in new entrants and replacement products as well as the current focus on health insurance and adequate coverage, existing Disability agents need to know where their policies fit in the playing field. Are your clients professional or trade? Own occupation or any occupation? Are the coverages total or partial, temporary or permanent? Knowing the type of customer you are serving will help determine the variety of products you need to offer in order to preserve your policies.

Agents need capital in order to improve their current efforts of serving and retaining clients as well as competing for new business. “Creative financing is key during a credit crunch in order to gain an advantage over competitors,” Wallace says. By selling an older or lower producing block of business, agents can obtain immediate capital needed to fund these efforts without incurring additional debt or risk.

To learn more about obtaining working capital to improve your agency, call 877.894.2785 or visit www.TWGCapital.com.

To request a free, no-obligation offer on your book of business to go www.TWGCapital.com/BuyMyBook.



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