Disability Insurance Articles

Why Disability Insurance Companies Often Work Through Employers

2011-01-01

Disability insurance companies are always seeking excellent sources of new leads for their disability insurance products. This is why it makes sense for disability insurance companies to approach employers and work together to offer disability insurance products to groups of employees who may have use for it. Traditionally employers will offer some level of disability insurance to their employees, but often these plans may not cover the full expense an employee will bear from becoming disabled. Electing a disability insurance plan through an employer may have limits, waiting periods, caps on benefits, and other limitations that means the policy will not fully serve the insured's needs should they become disabled.

Disability insurance companies can offer excellent disability insurance benefits through providing a policy to a group of employees through an employer. The policy can be an excellent win-win, in that insurance underwriters look more favorably upon groups of employees who are opting in to an employer sponsored disability insurance plan than they do on individual policy holders applying for a policy on their own. Employees appreciate the opportunity to purchase a valuable high quality disability insurance plan at a lower rate than they would be able to get as an individual policyholder, and employers look good to their employees by offering a quality plan at reasonable group rates to their employees.

Disability insurance companies appreciate the ease of sales when working through an employer in contrast to the difficulty that is often encountered when embarking upon individual sales pitches to individual customers. It is easier to sell disability insurance when there is an employer who endorses the disability insurance and actively encourages their employees to avail themselves of a favorably priced voluntary policy. The partnership is good public relations for the employer and good for business for the disability insurance company. Working with one employer can also open other business doors for the disability insurance company.

Finally, it can be advantageous for both the disability insurance company and the employer to work together - the disability insurance company can offer better pricing and tailored plans that can meet the needs of that specific group of employees, and the employer can have a tailor made disability insurance plan that their employees can truly benefit from. Especially in these tough economic times, partnerships can be of great benefit to both the insurance providers and to their customers, and any time there is a chance to assemble a package deal with group pricing, it bodes well for individuals to obtain the insurance they need at a price they can afford, and employers to be able to offer a quality yet affordable insurance benefit to their employees.