Discussion in 'Disability Insurance Forum' started by jn8691mr, May 13, 2016.
Disability or Med Sup?
I don't know disability as well as I do Med Supp but from what I have heard Med Supp wins.
I want to say disability is in the 12 - 18% range
Med Supp is in the 20 - 22% range
Thank you ... Much appreciated
True...but first year DI is 50+%. So at 15% renewals, it can be a better total comp depending on your contract.
I appreciate the insight!
I have heard stories of guys who straight KILL it in the DI space. Sounds like a great niche to me if you have the right network ...
Med Supp is pretty sweet too though ...
Med supp falls off the books and only pays 6 years unless it's rolled, plus nobody knows what the future of healthcare will look like. DI pays 10-18% renewals and the white-collar people buying it will keep it for a long time. Guardian pays renewals for the entire life of the policy, other companies cut off the renewals after 10 years. DI premiums are a lot higher than med supp too. I just quoted one that was $16k/year...
Curious what your average premium is? 16k, wow not a bad first year comp. Got a buddy high up in corporate for Illinois Mutual has me interested in trying to break into this niche. From what he tells me IM is geared more to blue collar. What carriers do you prefer?
DI pays more cumulatively. Like Ray said, you are getting anywhere from 50%-75% in FYC... then you get the 10%-20% renewals on top of that.
Plus, like DG said, DI policies do not get replaced unless its just a crappy policy. If you sell a 40 year old a DI policy there is around a 98% chance that you will get 24 years of renewals on that policy.
Plus with DI you have Future Increase Riders that let the client buy more coverage as their income increases.... and when you exercise that option you often get paid FYC again on the extra amount added on.
So DI also creates additional sales with new FYC at that 50%-75% comp.
What carriers are best to contract with for DI?
Search the DI forum. Lots of info about carriers. Not much use in getting contracted until you have interested prospects though. Finding a carrier is the easy part.
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