Business

The Critical Illness Insurance Market

In my previous article: Five Steps to Critical Illness Sales Success, the first step was identifying your target market. With your goal identified, you can begin to list the various goals that can be achieved with the use of a critical illness insurance policy. Some potential markets are:

  • Autonomous individuals
  • The family / single parent market
  • The group insurance market
  • High income people

While there may be some overlap in the end goals, the reasoning behind the goals will be different. It is impossible to launch an effective marketing campaign without understanding the goals of your target market. And without a specific target market, it’s impossible to fill your calendar with high-quality prospects.

The self employed

Perhaps no other target market needs critical illness insurance more than the self-employed. Unlike an employee of a larger company, this individual has no more employee benefits than he buys for himself. Goals for this market segment may include: income replacement, money to hire a temporary replacement employee, money to pay for routine business expenses, major medical gap coverage, and freedom from managed care restrictions. It is important to recognize that the self-employed person most likely does not have disability income protection, be it income protection or overhead. The Critical Illness Policy is a viable and less expensive alternative to disability income.

The group insurance market

This market offers numerous applications for insurance against serious illnesses. Depending on the size of the group you are targeting, some of the goals could be: voluntary benefits expansion, medical gap plan, executive benefits, and employer paid benefits expansion. This market is more complicated than other markets because you may need to understand the goals of not only the employer, but also the employees. While the employer must approve critical illness insurance as a voluntary benefit, the producer will still need to understand the employee goals for successful enrollment. To open a discussion about critical illness insurance as an executive benefit, it is important to understand the value to the executive. The employer market can have numerous challenges, but it can be one of the most profitable.

People with high incomes

This category includes physicians, attorneys, consultants, and other professionals with incomes greater than $ 250,000 per year. These people tend to have disability income protection, but are limited in the percentage of their income that can be protected. Critical illness insurance can ensure that they do not have to drain their savings and investments if they become disabled by a covered illness. People in this category tend to be less concerned about possible out-of-pocket expenses they may incur than they are about protecting their financial future.

The Family Market / Single Parents

The need for serious illness insurance here should be obvious. For working Americans, whether in a traditional family or as a single parent, the need for cash when a family member is diagnosed with a critical illness cannot be overstated. Income replacement needs far outweigh what disability income can protect. Parents want to be with their children if there is a cancer diagnosis, spouses want to be together when a serious illness occurs, and everyone wants the freedom to seek treatment outside the network when it is in their best interest. Regardless of whether it is a $ 10,000 policy or a $ 100,000 policy, there will be tremendous financial freedom for the family.

It should be obvious that there are many opportunities in the marketing of serious illness insurance. But beyond the sales opportunities is the possibility of making a difference in a person’s life.

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